Running a successful restaurant takes a lot of work. Many new restaurant owners underestimate the difficulties associated with practical aspects of business management such as accounting, but keeping track of finances is one of the most important steps they can take to ensure their business’s success. Read on to find a few tips for effective accounting that can help new restaurant owners get started off on the right foot.
Learn the Language
For trained accountants, terms like revenue, prime cost, and profit-and-loss make perfect sense but most business owners don’t have that level of knowledge. While there’s no need to enroll in a two-year program, they should take the time to learn the basic terms and definitions. There are plenty of resources online to help business owners with little financial savvy learn basic definitions so they can understand their restaurants’ financial situations.
Use the Right Tools
Most new restaurants don’t have it in the budget to hire a full-time accountant, but it’s worth investing a little money into restaurant software that will make it easier to keep track of things like inventory, invoices, and employee payrolls. Find a software solution that is tailored to restaurant owners’ needs and scalable enough to grow alongside the business as it becomes more popular and attracts new customers.
Pay Close Attention to Sales
Most restaurant patrons pay with credit cards, which can make it difficult to keep track of sales. Credit card companies will transfer money to the restaurant’s account just about every day, so stay on top of monitoring that activity. Don’t wait until the end of the week to record sales in a lump sum, as keeping track of day-to-day sales makes understanding inventory, payroll, and other aspects of the business’s accounting much easier.
Keep Track of Expenses Weekly
Keeping expenses under control is the best way to ensure that a new restaurant will be profitable. Most vendors expect payment once or twice a month, so make a point of writing down expenses as they come up and don’t get behind on bills. It takes less time to keep track of expenses than sales and this aspect of accounting is equally important.