B&J Bookkeeping helps all sorts of small to medium sized businesses with their bookkeeping. One of the many businesses we work with are restaurants of all sizes. Like most business it is essential for them to know their numbers in order to make sound financial decisions. Below we will tell you everything you need to know about bookkeeping for restaurants.
1. Why Does My Restaurant Need Bookkeeping?
Those of you who own restaurants know that 16 hour days are common. In all that prepping, cleaning, cooking, serving, collecting checks, managing workers, and much more – there is rarely time for the books. Unfortunately, restaurants are one of the small businesses that need professional bookkeeping the most. This is because each day comes with a different number of expenses and revenues – in addition to many other gains and losses.
Ever watch “Restaurant Impossible” on the Food Network? The host constantly berates owners for not knowing their books and often contracts a bookkeeper to go over everything. He also has great tips for how you should price food. You may read more on his official site.
2. How Bookkeeping for Restaurants Works
Each restaurant is different. However, each one should have bookkeeping measures in place for:
- Recording Sales – This is one of the easiest tasks to perform. Most restaurants use an advanced Point of Sale system to record sales on each item, beverage, liquor sale, and more. Those of you who still use paper checks are highly recommended to upgrade to one of these systems. They can definitely pay for themselves in the long run
- Record Expenses – This includes recording all fixed expenses and variables. Fixed expenses include items that don’t change such as your lease or mortgage. Variable expenses include your inventory, payroll, or anything else that can change from day to day. We also recommend that restaurants add any wasted product to these expenses.
- Outsource accounts payable and all payroll – Unfortunately, restaurants have a high turnover and you never know who is handling your money. Even the most trusted worker can make mistakes unintentionally. This is why a professional payroll and bookkeeping company is essential.
- Account Reconciliation- Like the above, a trusted bookkeeper is the only who should be reconciling your accounts to make sure it is being done to the penny accurately and on time. This is also essential when tax time comes around.
- Report Analyzation – Your bookkeeper will often come to you with reports. The most important for your restaurant is the profit and loss statement. It will show you how much you spent, what you spent it on, how much you made, and how you made it. The P&L will also show you how much money you made or lost in the specific period of time.
3. Should I Get a Bookkeeper for My Restaurant?
We are at true believer in leveraging your strengthens and outsourcing your weaknesses. Even restaurateurs with the bookkeeping know how to keep up with their business do not have the time to do so. Outsourcing your bookkeeping services takes the pressure and liability off of you. In addition to the above, many other aspects and complexities are baked into your restaurant bookkeeping, especially when the IRS gets involved. You will have to continually modify your bookkeeping system to meet your needs as your business grows.
Bookkeeping for Restaurants in Houston
Finally, feel free to contact us to learn more on how we can help your restaurant stay on top of its books and make the most of your money. We proudly serve restaurants and businesses of all types in Houston and the surrounding areas who need payroll, reconciliation, and bookkeeping services.
