The restaurant industry presents many challenges on both the business and bookkeeping fronts. Newcomers to the industry might assume that bookkeeping at a restaurant is just the same as any other business, but it is definitely different! Here are some things to keep in mind when evaluating your bookkeeping process.
The restaurant industry requires a lot of quick decision making. Menu items, staffing plans, and special promotions can be created and pulled with a moment’s notice based on their popularity and how it affects the bottom line. Restaurant bookkeeping requires a quicker turnaround on updates of profits and loss statements since things can change so quickly. Unlike other businesses with products that can last for long periods of time, restaurants deal with a lot of inventory turnover. Restaurant employees must take inventory frequently and itemize the menu items that have sold to show which inventory has been used. Inventory must take account for any food items that have both been used or have spoiled.
Another point for consideration with restaurants is that inventory costs can change drastically depending on the market. If there’s a sudden flash flood raising the cost of strawberries through the roof, the restaurant has to decide whether to keep any menu items associated with strawberries at the same price and assume the cost difference until the strawberry crisis is over. Or the restaurant can raise the price of the menu item, letting the customer assume the cost difference to continue to make profit.
While the use of credit and debit cards are extremely popular right now, restaurants deal with a high volume of cash exchanges. With the added intricacies of tips for service, it’s extremely important to reconcile every single penny that comes in. Restaurants are also required to account for all sales and tips received.
Most restaurant employees are paid hourly with timesheets. You must double check reported time sheet hours compared to scheduled hours, taking into consideration schedule swapping, calling in sick, or other changes. Also, if employees reported hours add up to a full-time status, additional compensation is required, so restaurant owners must watch these hours closely to take that into consideration.
It takes a highly trained bookkeeper to understand the nuances of restaurant bookkeeping. With years of experience, the knowledgeable staff at Count ‘Em Beans will assess and improve your bookkeeping process. Schedule an appointment with us today!