Restaurant owners will open their monthly P&L reports, check sales, then go down to the bottom and close the report.
Sounds familiar?
It might be a completely complete report, however by only examining those two numbers, it leaves most of its worth in the dust.
This shouldn’t force them to be more dependent on an accounting firm. It should provide them with confidence in their own financials. There is no need to spend in the dark putting together invoices or master every accounting rule. However, you must understand the reasons why profit fluctuated and what happened to food and labor costs and what questions need attention next week.
This is the premise behind Bookkeeping Chef: automate the bookkeeping work that doesn’t require a proprietor’s time while giving restaurant operators more precise financial data they can actually utilize.
Do Not Stop at the Month-End Numbers. Begin by calculating Weekly Numbers
Restaurants don’t operate on an annual basis. The managers schedule the labor for this week. The chef placed an order for food today. Vendors change prices now.
Bookkeeping Chef offers weekly flash reports on top costs as well as monthly financial statements.
Prime cost combines the cost of goods sold and labor. Both of these are major areas that can move quickly in restaurants. According to data offered by Bookkeeping chef, prime costs represent approximately 60% of restaurant sales.
Suppose sales have barely changed and the prime cost has increased. The percent by itself does not give the answer. It gives the owner reason to investigate.
Is the hourly wage increasing? Did overtime happen? Was the cost of food fluctuating? Did a vendor invoice seem abnormally high? What changes have occurred in the sales mix?
It’s far more beneficial than identifying the same issue two weeks later.
Automate repetitive tasks
Bookkeeping for DIY isn’t just about manually transfer of POS numbers into spreadsheets.
Modern restaurant bookkeeping automation is able to take care of a large portion of the repetitive transfer of financial information. The service can connect to systems such as POS, QuickBooks, payroll vendor platforms, inventory and recipe management, as well payment and AP tools.
The goal isn’t to automate to achieve its own ends.
This reduces the time spent on manually entering data. This also helps keep the financial records up-to-date so that owners are able to focus on studying data, not gathering 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.
P&L Questions: Learn How to Ask More Effective Questions
When you stop treating a P&L as a test it becomes less intimidating.
Start with sales. Then, you can look at the costs of production. Compare the food and beverage efficiency. Think about the labor. Keep working to cut down your operating expenses.
Comparing the time spans is crucial.
If the sales rise but the profits aren’t, there’s some variation between the two. What changed in the operation when food costs grew. Examine the staffing levels and sales activities in case labor percentages have changed. If the number appears odd, investigate rather than assuming that the restaurant had a bad month.
Bookkeeping Chef delivers monthly P&Ls in five days. This lets the owners look at recent results without having to wait for financial statements that are often received months after the close of the operating period.
Speed is important, but it is important to know.
DIY Doesn’t Have to Mean Making Everything You Need
You can find a comfortable middle between having someone manage all of your financial tasks and becoming your own accountant full-time.
Owners can continue to be involved in the accounting process, without needing to complete every task manually.
This could include the use of automated systems to keep track of information flow, looking over the monthly P&L and weekly reports on primary expenses or asking questions when something unexpected happens.
Specialized restaurant bookkeeping services can help with this by keeping the books in order while helping the proprietor understand what the reports mean.
This does not mean that the bookkeeper will be capable of performing every bookkeeping task.
A business owner can talk to an P&L about the business.
The goal is financial independence, not more reports
Restaurants create a lot information. Another dashboard doesn’t have to be a necessity.
Real value occurs the moment an operator opens an P&L report, and see that there has been a change, and then go through the reports on the cost of prime.
Bookkeeping Chef’s plan combines restaurant bookkeeping automation daily reporting, monthly P&Ls, and specific financial assistance for restaurants to help you achieve this.
Automatize repetitive tasks. Check your prime costs every week. Be aware of the language used within your P&L.
You don’t need to be an accountant professional.
It is crucial to comprehend the financials of your restaurant before you are able to become the proprietor.