Restaurant Accounting 101: Manage Your Bookkeeping Like a Pro
“Cost of goods sold” refers to the products you buy that make up your product. And in the restaurant business, it’s no secret that, in order to make food, you’ll have to buy ingredients. If you’re opening a franchise restaurant business, such as Pizza Hut or TGI Friday’s, you’ll source your food directly from suppliers as instructed by the home office.
While there are some basic reports virtually every business needs, there are several additional reports you may need when it comes to bookkeeping for restaurants. In this case, that means finding a bookkeeper with plenty of experience working with restaurants. The right bookkeeper for your restaurant will be familiar with FOH and BOH operations and how to optimize Accounting for Startups: The Ultimate Guide your books for your business. The truth is, once restaurants start outsourcing bookkeeping, the benefits can be profound. From streamlined systems to cost savings and a lot more time back for other things, you’ll be so glad to have this critical task(s) taken care of. Restaurants with less than $1 million in profits can choose between cash or accrual accounting.
Utilize Financial Software
Aside from keeping you informed of the big picture, accounting solutions help automate daily tasks within the accounting process. Super helpful for small business owners who never seem to have enough time. Software can link https://adprun.net/accounting-payroll-services/ to your business bank account, act as accounts payable or receivable, take care of payroll (and payroll taxes) and more. This period of time covers your financial statements and allows you to compare performance over time.
This method allows businesses to record their generated income when cash is received from services rendered or paid for expenses and costs. Since restaurants and bars deal with a lot of cash daily, this method is the preferred method. Accounting software can seamlessly aggregate your chart of accounts for you and populate key financial reports with accurate information. It can show you an overview of your key financial reports, such as your balance sheet, cash flow report, and profit and loss statement. It’s a high-level point of reference when comparing your data to industry averages and also assists in keeping track of your expenses. If you are not using financial reporting for your restaurant, then you are running your business blind.
You can use restaurant accounting software to manage all your bookkeeping needs, such as creating professional invoices, managing cash flow, and tracking time. Plate IQ is our choice for the best-automated restaurant accounting software because it automates processes for the restaurant owner so they can focus on other tasks. Using Plate IQ, restaurant owners, and managers can automate invoices and accounts payable systems all on one platform. It can be used on its own, integrated with other products, or used in combination with other accounting software for restaurants. Accurate restaurant accounting has a multitude of benefits for the success and growth of your business.
What are the duties of a bookkeeper in a restaurant?
- Tracking your expenses and deposits.
- Generating a profit and loss statement.
- Maintaining records for tax obligations.
- Overseeing payroll and vendor invoices.