Statistics show that 25% of restaurants end up closing after being open for less than a year. When a restaurant fails this quickly, it usually is not because of the quality of the food or the service. When this happens, the problems are much more likely to have something to do with the restaurant’s accounting and bookkeeping practices. Running a successful restaurant involves much more than preparing high-quality food and offering top-notch service. Just because a chef has mastered their craft in the kitchen, it does not mean that they have a strong grasp of restaurant accounting and bookkeeping practices. Therefore, it is imperative that you keep a sharp eye on the books, analyzing trends and capitalizing on opportunities. Here are a few tips to help you along the way.
Use Your POS Data Effectively
Your point-of-sale system can be a simple conduit for delivering food to your customers and money to you or it can be so, so much more. Leveraging the power of data derived from these machines, you can evaluate your overall health, daily business trends and much more to make calculated decisions with regard to staffing, pricing, and operations.
Create a P&L Statement
Creating a restaurant profit and loss statement is one of the best ways to get a top-down view of your business's overall financial health. Compare staffing, food, and operational costs with total income to see where you stand. Keeping this record updated will go a long way to providing you with a weathervane of sorts for where your business should be beheaded.
Invest in Good Restaurant Accounting Software
Commit to Accuracy
Again, you’re a busy professional. You may feel like you have a million responsibilities, and you may well be right about it, but keeping accurate and consistent records is vital to your businesses health and prosperity. Most financial anxiety in the restaurant industry stems from a lack of commitment to excellent record keeping, putting your business on uneven footing. Thankfully, there’s a better way to do things.
Hire the Professionals