Restaurant accounting is considered to be very important to ensure the success of your business but most people overlook it as it is not easy to track all the numbers. But you don’t have to be scared of restaurant accounting. There are different ways to make the process smooth and easier. Even a simple premise has a lot of responsibilities that you may not know.
Choosing an ideal POS system
It is one of the most overlooked but important steps. A lot of restaurant managers don’t consider the front-end POS system as important for back-end accounting operations. You can track the cost of workforce, inventory, modes of payment, and lots of aspects by connecting the POS system with restaurant accounting. These systems can work together to make your life easier.
Pay attention to sales
A lot of restaurant sales rely on credit card transactions. You need to close the transactions all day with credit card terminals. Credit card provider starts transferring funds to your account whenever any transaction occurs. Your bookkeeping should record this activity of daily deposits and cash outs. Some restaurants end up waiting for the end of the week to record all the transactions in lump sum. But you cannot ensure accuracy with this process. Recording daily sales is very vital as it can change other aspects like payroll and inventory. You need to record all the sales regularly so reporting can be easier.
Get a hold on the expenses
Different restaurants have different costs of running a business. It is always wise to keep a hold on those expenses to ensure profitability. According to the arrangements you make and the amount of money you pay to the vendors, you may get bills every week or months. You should record and pay bills weekly and gain some experience. You may learn that you need to record expenses every 2 weeks but sales every day. It is completely up to your bills. No matter what, your bills shouldn’t go up.
It is also a nice idea to hire an accountant who is experienced enough to help your business with finances. If you can’t control things in bookkeeping, it is always better to have an accountant by your side. Even though you know bookkeeping well, there is nothing wrong in hiring a professional accountant to help you in the process.
Whether you have been into restaurant business for years or starting out, it is always recommended to hire an accountant to keep everything on track. It helps you to ensure that you comply with all state, federal, payroll and local tax laws and you are running a profitable business. You can find someone who knows local laws very well and has years of experience in accounting for restaurant business.