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10 Simple Bookkeeping Tips For Restaurant Owners

Running a restaurant is no easy task. From managing inventory and staff to ensuring your customers feel relaxed and comfortable, the demands on restaurant owners and managers are endless. The hustle of day-to-day restaurant operations is not the only thing that needs to be managed. One crucial aspect, that often gets overlooked, is bookkeeping. Consistent bookkeeping is important to help track and maintain the financial health of your restaurant. Here are some tips that you can use to keep your books in order and your business thriving.

Separate Your Personal and Business Finances

Keeping business and personal finances separated makes the bookkeeping process much smoother. Open a dedicated bank account and use it exclusively for your business. Make all your restaurant-related transactions using credit or debit accounts connected to this one account. This separation will make tracking your expenses and income much simpler and will make filing taxes much smoother.

Automate Your Bookkeeping Where Possible

The more of your bookkeeping and financial management that you can automate, the more time you can save to spend on taking your restaurant to the next level. Leverage automation in bookkeeping and document management technology to make data entry, invoicing, payroll and expense tracking simpler and faster. Look into accounting software like QuickBooks, Xero, LedgerDocs or specialized restaurant management software.

Track All Of Your Business Expenses

Keep a detailed record of your restaurant expenses, anything from the cost of food and beverage to the cost of rent, utilities and restaurant maintenance. Make sure to categorize these expenses properly to get a clear picture of where your money is going and look for areas where you may be able to cut costs.

Implement an Inventory Management System

Inventory management is important for controlling your costs and reducing your restaurant waste. Try using inventory management software to keep track of your stock levels and monitor your usage patterns. This will help you forecast your needs more accurately in the future. This will save you a lot of wasted money and inventory in the future.

Stay on Top of Accounts Payable and Receivable

Stay on top of your payments to suppliers and keep careful track of any money owed to you. Put a process in place for tracking and managing your accounts payable and receivable, and follow regularly on any unpaid invoices you may have. This helps you to maintain good relationships with your vendors and keeps a healthy cash flow for your business.

Reconcile Your Bank Statements Regularly

Be sure to reconcile your bank statements with your accounting records regularly to ensure your bookkeeping is accurate. Regular reconciliations help you find any discrepancies, errors or fraudulent activities, sooner, preventing little issues from turning into big ones. Aim to do this at least once a month.

Monitor Your Key Financial Indicators

Keep your eye on key financial metrics like food cost percentage, labour cost percentage, and prime cost. These metrics give you an insight into your restaurant’s financial health and help you make better financial decisions

Plan for Tax Season Throughout the Year

Unexpected tax expenses can quickly become a significant burden if not planned for properly. Set aside the proper amount of funds for taxes throughout the year to avoid any surprises. Stay up to date on tax deadlines and new regulations and ensure you are filing correctly and on time to avoid penalties. Consider setting up a consultation with a tax professional, they may be able to help you to maximize your deductions and optimize your tax strategy.

Create a Budget and Stick to It

A well-defined budget can be a powerful tool for your restaurant’s financial health. Create a realistic budget based on your historical financial data and future projections. Monitor your business’s actual performance against your planned budget regularly and make adjustments as needed. This helps you to control your expenses and keeps your goals on track.

Hire a Professional to Help

Managing your bookkeeping along with your restaurant can feel overwhelming. But you don’t have to manage it all on your own. Hiring a bookkeeper or accountant firm to handle your bookkeeping gives you ease of mind and frees up your time to focus on running your restaurant.

LedgersOnline Can Help

LedgersOnline team of expert bookkeeping professionals can help you keep your books in order and give you the strategic advice you need to move your business forward. Schedule a 1:1 consultation and learn how we can help.

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