Simple 3 Step Guide to Restaurant Bookkeeping
Opening a restaurant or similar hospitality business can be difficult for a variety of reasons. The daily operation of running a restaurant can force an owner to dismiss their bookkeeping requirements. It is incredibly difficult to catch up to the bookkeeping once you have fallen behind. The profit margins associated with the restaurant/hospitality industry are far too stringent to allow slip ups.
Here is a quick three step guide to ensuring your bookkeeping is under control. Of course, you can always contact professional Melbourne bookkeepers to handle your bookkeeping for you, thus alleviating the stress of doing it yourself.
One of the first situations you need to be on top of is how to correctly record your restaurant’s sales. With restaurant sales it is imperative to record a daily sales entry into your chosen accounting system. Most restaurants accept credit and other cards and settle this amount after the day’s operation. The outcome of this will be a credit card deposit coming into your bank account separately for each payment. You must have the ability to analyse how payments are coming into your bank and also create a bookkeeping system that reflects that activity.
To be able to record your daily sales you need to create a report that makes a summary of your restaurant’s daily sales. Restaurant POS systems often have a daily sales summer system inbuilt within the system. You may need to customise the daily report in order to gain more specific information. For this, you have to work through the customisation of your point of sales system. Once you have completed this task you should then create a daily sales journal entry as well as memorised transaction through your chosen accounting software.
Restaurant owners often utilise an outsourced payroll service, similar to businesses across all industries. This is because of the fact that running your own payroll can prove troublesome. If you make a mistake filing your payroll taxes or accidentally file them too late, the interest and penalties you may incur can be rather large. Additionally, outsourcing payroll services is incredibly affordable. It’s good to find a payroll provider who has a good reputation. You should also find payroll providers who can transfer the data into your chosen accounting software as well as having pay cheques and reports sent digitally.
Financial reporting in the restaurant industry is a crucial element of the bookkeeping system. If you are not reporting your restaurant’s finances then you are doing things the completely wrong way. It is important to analyse your financial reports on a regular basis due to tight profit margins. Restaurants should be comparing cost of goods vs. sales as well as labour ratios. Another ratio restaurants should be keeping on top of is the prime cost, which aims to keep labour + cost of food + beverage at around 60 percent to 65 percent of your overall sales.
Analysing your loss comparisons and profit to previous years will also give you an idea of how you are running the business financially. The correct reporting of a restaurant’s finances can be the difference between its success or failure.
Still, remember to have your bookkeeping needs take care of for your by expert Melbourne bookkeepers. They have the skills and know-how to take care of some of the frustrating matters for you.