How to Track The Details of Your Restaurant Budget
When you are running a restaurant there are plenty of opportunities for things to slip between the cracks.
Accounting Services and POS
This is an important question! Your Point of Service (POS) system should be able to offer you at least payroll/timesheet integration, as well as offer you an extremely accurate breakdown of your sales. You should also be able to easily assess how much your wait staff are making in tips.
If your POS system doesn’t allow for back-end accounting (and many of them don’t) then you should consider finding someone with experience in restauarant management accountanting who also knows how to interact with your POS software.
Working with a truly good accountant (remote or in-house) is one step better than integrating your POS and accounting software because now you are offered help with your taxes. There is almost no better way to save money than having a knowledgeable mind focused on saving you money with your taxes.
Are You Paying Close Attention to Inventory?
If you are a restaurant owner or manager you already know this all too well: keeping up with your inventory is absolutely crucial to your business.
It can be tempting to focus only on your present needs, like what exactly needs to be stocked before the event next week, or what wines you are running low on. Even if you are reviewing the numbers as you do this you might not be honing in on one important thing: where are you losing money?
Reviewing your spreadsheets with the intention of specifically detecting profit loss can be a really astounding process. Losing $10 here and $40 there can really, really add up. It might be a good idea to spend time at the end of each month seeing which food items you got the least return on. Add it all up! Never avoid the numbers.
Reviewing Your Finances Regularly Is Key
Like we said, it can be tempting to just focus on what you need right now and forget to assess how well your financial strategies are actually panning out.
Make sure to ask yourself questions like:
- If we got rid of _______ how much would we save? How much would we lose?
- Which monthly financial statements are the biggest problems for us? Is there a long term strategy that can help us reduce that burden?
- How much money and time am I spending to track inventory? Is there a cost-effective alternative?
- Which fix costs can be adjusted?
- Which menu items make us the least money for the food cost? Which have sold the least over the last 12 months?
Don’t be afraid to look into certified public accountants, either one who can help you in-house or online. Even the chance to let fresh eyes look over your budget is a great idea! Here at Arrow Cloud Bookkeeping we want to help you make sure you aren’t losing any money. Give us a call to set up a consultation today.