Restaurant owners open the monthly P&L and looks at the sales, then jumps to the bottom line, and then closes the P&L.
Does it sound familiar?
If only these two numbers are examined then the real value is gone.
They shouldn’t be more dependent on an accounting company. They should feel more secure about their numbers. You don’t need to be an expert in accounting or spend at night filling out invoices. It is important to know how profit has changed, what’s happened to food and labor costs, and what questions should be addressed in the coming week.
That’s the philosophy behind Bookkeeping Chef: automate the bookkeeping work that doesn’t require an owner’s time while giving restaurant operators better financial information that they can actually utilize.
You should begin by looking at Weekly Numbers and Not just Month-End
A monthly P&L is important, however restaurants aren’t operating monthly. Managers schedule labor for the week. Chefs ordered food this morning. Vendors change prices now.
Bookkeeping Chef’s weekly prime-cost reports are published alongside the financial statements for the month.
Prime cost is the sum of two crucial areas that are easily moved in a food service establishment: the price of the food that are sold, as well as labor. The data provided by the Bookkeeping chef indicates that prime costs usually represent 60% of sales in restaurants.
Imagine that sales barely grew, yet the cost of production increased. The percentage by itself does not answer the question. It provides the person with a reason to investigate.
Did you notice an increase in the number of hours was worked? Did you have overtime? Costs of food changed? Did vendor invoices seem excessively high? Did the sales mix change?
This is far more beneficial than finding the same problem two weeks later.
Automate the repetitive work
The DIY bookkeeping process doesn’t have to be limited to manually moving POS figures into spreadsheets.
Modern restaurant bookkeeping automation can handle a significant portion of the repeated movements of financial data. The service integrates systems like POS and QuickBooks payroll vendor platforms, and inventory management.
Automating for the sake automated is not the aim.
This is to decrease the time spent on manually entering data. Also, it keeps financial records updated so owners can spend time on looking over information instead of gathering it.
It provides a completely new bookkeeping model for restaurants. Technology takes care of the mechanics and the owner stays engaged with the financial aspects.
You can also ask more questions regarding P&L
A P&L will be much more manageable when you stop treating it like an accounting test.
Start with the sales. Next, look at the expenses necessary to achieve those sales. Compare the food and beverage industry’s performance. Look at labor. Reduce operating expenses and examine what’s left.
Check out the various periods.
Something between these two lines has changed if sales have increased, but profit has not. What was the result when food prices rose? Check the levels of staffing and sales activities in case labor percentages have changed. Examine if the number appears unusual, rather than believing that the restaurant went through poor times.
Bookkeeping Chef offers monthly P&Ls that are finalized in five business days. Owners are able to review the performance of their business without waiting months to receive financial statements.
Understanding is more crucial than speed for owners seeking bookkeeping solutions for restaurants.
DIY Doesn’t Have to Mean doing everything yourself.
You don’t have to become your own bookkeeper full-time If you’d like to avoid handing the complete financial responsibility over to another person.
A business owner can be involved without manually performing each accounting job.
This may mean using automated systems to maintain information flow, reviewing an annual P&L and weekly reports on the primary costs or asking questions when an unexpected event occurs.
Restaurant bookkeeping services that specialize in restaurants can help owners comprehend the significance of reports by organizing the books and keeping them organized.
However, this does not mean the bookkeeper is capable of performing every bookkeeping task.
Owners who can sit down and talk intelligently about their company with the P&L will be more successful.
The aim is financial independence, Not More Reports
Restaurants create a lot information. A different dashboard won’t be as effective.
When an operator can look at the weekly report on prime costs and discover that something has changed, they may then open up their P&L to look into what’s required for an analysis.
Bookkeeping Chef’s approach combines restaurant bookkeeping automation, weekly reporting, monthly P&Ls, and restaurant-specific financial support to make that possible.
Automatize repetitive tasks. Check your prime costs every week. Learn to understand the same language as your P&L.
There is no need to become an accountant.
It is important to understand the financials of your establishment before you are able to become the proprietor.
