In one way a restaurant is no different than any other business. The owners went into business to not only do
what they love and are passionate about but to also make a profit. With restaurants, however, the owner is dealing with a number of issues that many businesses do not face.
With some businesses an inventory item might be good for years if you can't move it or if you need more you have the time to order it and get it in before it is needed. In the restaurant business it is necessary to have all the food you need for that night or you may not be able to get it to please your customers. Add to that if you have too much you now have waste. Inventory is all the food, supplies and ingredients that you have on hand. These items need to be counted at regular intervals not just for ordering purposes but also for loss prevention.
Having experienced and expert restaurant bookkeeping can help keep you up on trends and let you know exactly where you stand by managing cash flow, putting controls in place, and helping to manage inventory as well as giving you the financial statements.
Having controls in place not only makes sure all the sales are accounted for but also to put controls on food inventory so that you know where you stand with your costs as well. Good business bookkeeping records can help you determine when you need more staff and when you can cut back.
The price you charge can be a factor if the cost of your supplies is rising but your prices are not. A
bookkeeping system that is in place can tell you if what you are charging is covering not just the cost of the food but the overhead as well. Good bookkeeping can calculate what your overhead is for each time you open the door. This is critical information that every restaurant needs to know.
Restaurants need to know all the bookkeeping is being done correctly and accurately so that the bottom line reflects the true picture. Good bookkeeping cannot guarantee a profit but it will make sure that you know where the problems are and how to address them. Comprehensive reports that drill down to the information you need can really help the bottom line.
