Accounting Tips for Restaurant Operators
As a restaurant operator, you play a crucial role in keeping track of the revenue sources and probably the expenses (Also see What You Need to Know About Record Keeping). Indeed, you have to keep an eye on all the expenditures of sales such as ingredient purchases, food-wasting, restaurant marketing costs.
One of the most vital tasks that you have to handle appropriately as a Restaurant operator is the accounting (Also see Four Different Services Provided by Accounting Firms). Simultaneously, you need to be the restaurant’s accounting professional; especially when the business is newly incorporated. You must acquire the ability to manage your numbers before they perplex you.
When you decided on the food and ingredients you require well as the market positioning of your restaurant, you prefer to look for suppliers that can maintain constant supplies at a reasonable and affordable price. Avoid selecting suppliers only according to the cost. If you are advanced enough to keep an inventory control system, you wish to ensure that your suppliers can supply the ingredients needed within the lead time that you have agreed with them earlier.
Like other industries, the restaurant’s operation is much dependent on numbers. Revenue, shop rental, personnel expenses, food costs, have a close relationship with critical numbers that you have to monitor them consistently. If you wish to succeed in your restaurant business, you must ensure that you play a good role as an accountant.
At a later stage of your business endeavour, you can get staff to aid you with that, yet you definitely still need to work with the numbers. Unluckily, you cannot escape from getting involved with your financial numbers, or you may not be able to understand the situation of your business clearly when you do not have them at your fingertips. Thus, you need to have the initiative to do some research studies on the point-of-sale system along with your cash flow statement. These will aid in acquiring a correct perception into the crucial thing in the sales projection as well as Profit and Loss. Sheer determination is required if you want to be a great accountant. You need to analyse the daily progress at the beginning or the end of the day.
Furthermore, you need to review what happened on the day before. The restaurant profits, be it the food or drink, have to be suitably classified to the correct division respectively to provide a clear picture of the products sold. You probably need to differentiate the GST collected from the sales proceeds too (Also see How To Organize Your Accounting Records In Singapore?). For you, as a tax agent for the Singapore government, this is important. You need to divide out the receipts according to different modes of payment, for instance, credit card proceeds and cash proceeds. That is to say, every small thing that happens requires to be recorded daily.
Apart from that, you also recommended to monitor all the staff salaries monthly. This enables you to get an idea of the average costs for the employees. Then, the payment for invoices your restaurant collected now and then as well as documents about the purpose of spending them have to be processed.
The accounting function is a crucial part of the development as well as the success of your restaurant (Also see How to Increase Working Capital). Your restaurant will not be able to survive without appropriate accounting whether you do it in-house or outsource the function. If you have a problem doing it by yourself, engage an accounting service in Singapore to aid you with the problematic job.