The Value of Restaurant Bookkeeping

Knowing your key metrics can be the difference between success and failure. Too much labor can bring excellent service that result in higher guest retention. High labor in the form of salaries can also cripple cash flow.

High food cost is a constant problem. But knowing what your food cost is requires accurate bookkeeping. Your bookkeeper will need to separate the food on hand ( Inventory ) from the food sold ( Cost of Goods Sold). The food cost is derived from cost of goods sold.
It is imperative inventories are done timely and accurately to calculate food cost.

Once you know your food cost and labor cost. You can now plan and budget more effectively .

An accurate profit and loss with balance sheet will give you the tools you need to budget with accuracy.

Your budget will show you which income and expense items are on target and which ones are short and over. The variances should be investigated to find out why your budget isn’t as planned.

Forecasting and planning is the path forward in times of uncertainty. Your bookkeeper will provide you with the key metrics to determine:

If your restaurant is making money.
Determine where your money is going.
Enable you to have enough cash on hand at all times.
Cut out unnecessary expenses.
Reduce the financial stress of running a restaurant.

Planning is only as good as the numbers you are working with. Better planning with highly accurate numbers can be the difference between success and failure.

Taking the time to do an accurate inventory every month is essential. An accurate inventory will be the tool to calcuate cost of goods sold. Cost of goods sold is a key metric on your profit and loss.
Other benefits of an accurate inventory shows if you are ordering the right quantites of items at the right price.
Its never a bad idea to go to the dishwashing area and examine the food being thrown out. Are there dishes that are not eaten and enjoyed? Maybe this is a place to start. Look at the menu and see what is popular and what is thrown in the garbage each night. Its hard to retain guests who didnt like their food- but are too shy to say so.

To learn more about bookkeeping, budgeting and forecasting – study your key metrics and produce a plan to get you through the hard times.

Allrestaurant
bookkeeper

(440) 533-9224