Restaurant owners open their monthly P&L reports, check the sales, and then go to the bottom and close the report.
Does this sound familiar?
If only those two numbers are scrutinized, the report’s true value is gone.
It shouldn’t cause them to become more dependent on an accounting company. They should feel more confident of their financials. There is no need to be familiar with every accounting rule and do a lot of work in the evenings completing invoices. You should know the way profit has fluctuated as well as what’s changed with food and labor costs, and what questions should be addressed next week.
This is the concept Bookkeeping Chef’s mission: to Automate the bookkeeping task which doesn’t require the owner’s time while giving restaurant operators greater financial transparency that they can actually use.
Don’t stop at month-end Numbers. Start with Weekly Numbers
Although restaurants are not operating according to a calendar, they do require an P&L. This week, managers are planning their labor. The chef has ordered food for today. Vendors change prices now.
Bookkeeping Chef offers weekly flash reports on costs of the day along with monthly financial statements.
Prime cost is the sum of two important areas that can be swiftly transferred in a food service establishment: the price of the food sold, and labor. Bookkeeping Chef’s supplied information notes that the prime cost typically accounts for about 60% of sales in restaurants.
Imagine a situation in which sales are barely changing and the costs of primary production are growing. The percentage by itself does not answer the question. This gives the person in charge an excuse to do some study.
Have the hourly wages increased? Did overtime occur? Has the cost of food increased? Did vendor invoices seem abnormally high? Did the sales mix change?
It’s better to identify the issue now rather as opposed to later.
Automate repetitive tasks
Self-bookkeeping doesn’t mean manually transfer of POS numbers into spreadsheets.
Automating bookkeeping for restaurants can assist to reduce the number of times financial data is moved. The service integrates systems such as POS as well as QuickBooks payroll vendor platforms and inventory management.
Automating just for the sake of automation is not the objective.
This helps to cut down on the manually entering data. Also, it keeps current financial records so that owners can spend time on studying data, not collecting it.
That creates a different model of bookkeeping for restaurants: technology handles more of the mechanics while the owner remains engaged with the financial meaning.
Learn to Ask the P&L More Questions
A P&L is less daunting when you stop thinking of it as an accounting exam.
Start by looking at the number of sales. Next, look at the expenses needed to make the sales. Compare the food and drink performances. Consider the labor. See the work.
Compare periods.
Something in between has changed in the event that sales have been increasing, but profits have not. If food prices was up, you should ask about the changes operationally. Compare the staffing levels and sales activities in case labor percentages changed. Find out if a figure seems strange, instead of assuming that the restaurant had an unfavorable time.
Bookkeeping Chef provides monthly P&Ls completed within five business days, allowing owners the opportunity to look over recent performance, not receiving accounts long after the operational period is completed.
Speed is essential, but the goal is to understand.
It’s not required to make everything.
It’s not necessary to become your own full-time bookkeeper to avoid handing the complete financial responsibility to another person.
Owners can remain engaged without having to manually complete each accounting job.
The process could be as easy as utilizing automated system connections to keep the information flowing. It could also be as complex and involved a study of the monthly P&L or even a review of a weekly Prime-cost Report.
The bookkeeping services of restaurants that specialize in catering can assist restaurant owners comprehend the significance of reports by arranging the books and keeping them organized.
It’s not an owner who can accomplish every bookkeeping job.
A business owner can have a conversation with a P&L regarding the business.
The Objective Is Financial Independence Not More Reports
Restaurants produce a lot of data. Another dashboard may not be efficient.
The true value is when an operator can look at the weekly report of prime cost and recognize that something changed, then access the P&L and understand what to do next.
Bookkeeping Chef’s plan incorporates financial support for restaurants, regular reporting and automated bookkeeping in restaurants to accomplish this.
Automate repetitive tasks. Check the primary cost every week. Understand the language that is used in your P&L.
You do not have to be an accountant.
It is crucial to know the financials of your restaurant before you are able to become the proprietor.