8 Tips to Perform Effective Restaurant Accounting

Running a restaurant is an extremely exciting endeavor and can result in massive profits for the owner. However, many people tend to overlook the key factor while operating their restaurant – accounting. A restaurant with unclear balance sheets soon faces grieve problems. Simply serving multitudes of customers without a sound strategy in place won’t take your restaurant anywhere. We have listed down a few tips to help you do an effectual accounting of your restaurant.

Restaurant accounting

Payroll

Deploying a proper payroll system is essential to organize the finances of your restaurant. Employees are paid on weekly basis hence it’s quite to keep track of this manually. A good option is to outsource the accounting to save hefty efforts and time. You need to adhere to the recent payrolls to avoid any hefty fines from the authorities. Have a professional person to keep track of your balance sheet to maximize your outcome.

Inventory

Keeping track of the inventory can be an intimidating task especially for products with quick expiry dates. Therefore it’s preferable that you deploy a management system that keeps track of the demand and the available inventory. Normally weekends bring excess traffic to the restaurant therefore you should order excess inventory on them.

Point of Sales (POS) System

Your front end system should also comply with your strict accounting practices. A POS system will record the number of orders and completed transactions. Advanced POS systems will provide you with a complete sales report with all the nitty gritty details included. Don’t be hesitant in choosing a good POS system as it will make your daily invoicing much more functional.

Hiring an Accountant

If you are finding trouble managing your accounts by yourself, it’s always recommended to hire a professional accountant. They will help you interpret the finances in a simplified manner. You can hire an in house accountant or hire a professional firm on part time basis. From financial consultations to proper book keeping, these accountants provide a range of services.

Financial Software

Financial software are designed to aid small or large restaurants manage their accounts more effectively. Each software has some advantages and disadvantages therefore look into them individually and see which suits your business specifically. Microsoft Dynamics GP and QuickBooks are some of the software to consider.

Restaurant Profit and Loss System

A P&L system will keep record of revenue, overhead costs and operating costs and will give you an insight to where you are standing. It’s recommended to update your P&L register on weekly basis.

Sales

Keeping track of sales record is undoubtedly the most crucial and difficult task. Therefore restaurants should monitor the spreadsheet after each shift for better management. You can schedule shifts of your staff accordingly. Also, a major chunk of sales happen from credit cards in restaurants so make a habit of closing down all those transactions daily.

Expenses

To monitor your profitability, it’s important to keep track of your expenses. Initially note down all expenses daily. Later, you’ll understand which ones need to be recorded daily and you can save excess effort at the end of each month.