What Is Needed For Having A Successful Accounting System For Restaurants?

An image of professionals in a restaurant

The Importance Of Having An Accounting System In A Restaurant

You will always feel adrenalin when you open your restaurant, maybe because the restaurant was your long-time dream. However, when starting to know the business’s heat, you might want to invest in certain other things that can help you run the business successfully. One such thing would be the hiring of a virtual accountant, who can provide you with your finance report whenever you ask for it. The restaurant is one such business where there will be sales every day, and it is important to track the incoming and outgoing cash daily. So why is accounting important for the restaurant business? It is because one accounting mistake in the calculation can end up in loss.

Steps To Follow In Restaurant Accounting

As a restaurant owner, it is your responsibility to track the income and expenses. If you fail to track it, the business will be affected, and it can also lead to the end of your dream. By following these steps, you can get an efficient accounting system, wherein the daily businesses will be recorded.

1. Hire An Accountant Or A Bookkeeper

To set up an efficient restaurant accounting system, you will have to hire a bookkeeper or an accountant. Having perfect financial records can help tax filing and help make good decisions for the restaurant’s future. However, the first thing you need to understand is the difference between an accountant and a bookkeeper. The bookkeeper records all the transactions, and they organize receipts and other documents. An accountant analyzes the information provided by the bookkeeper and makes reports so that even a non-business person can understand the financial statements. If you want, you can be the bookkeeper and use the online accounting services in a restaurant.

2. Choose An Accounting Software

These days, you find much good accounting software. From that, you need to choose the one which is easier for you to understand and learn and at the same time caters to all your accounting needs. It would help if you went for the software with inventory management features, easy to integrate with payroll software and generate the P&L and other financial statements. The other features you need to look for in accounting software are accounts receivable and payable management, employee scheduling, invoicing, menu planning, etc.

An image of elements in the accounting3. Choose Your Accounting Method

Before selecting the accounting method, you have to decide whether you will use double-entry or single-entry bookkeeping. Because the restaurant business includes inventory, the use of double-entry bookkeeping is advisable.

4. Opt For POS (Point-Of-Sale) System

A POS is where the consumer pays for their bills and other services they have bought in a restaurant. The restaurant POS system needs features such as tracking sales, timekeeping for employees, and sometimes menu preparation in the POS software. The software can also assist in the preparation of the payroll.

5. Gather The Chart Of Accounts

It has five categories that combine the balance sheet and income statement. These accounts as liabilities, assets, revenue and expenses, owner’s equity. These accounts will get credited and debited as per the accounting principles when you earn or spend money.

How To Track The Fund Flow

Here are the accounts in the chart of accounts that need your attention.

Payroll- One of the most problematic accounts in every business is payroll. In a business, there may be part-time and full-time workers who have different pay rates. Rather than doing the payroll yourself, it is always advised to outsource the payroll services or opt for software that focuses more on the payroll.

Inventory – As a restaurant owner, your inventory has is divided into two, food and supplies. It is advised to keep the average daily inventory low without causing shortages. For inventory tracking, you can use your POS software.

Accounts Payable – This is what you owe your dealers and suppliers. Accounts payable is listed on the balance sheet. When a supplier sends you the invoice, you can add that to the accounting software, which will remind you when the payment date gets near. By doing this, you will be paying the bills on time, without any delay. Having a healthy rapport with the vendors and suppliers can help you run the restaurant business successfully.

Restaurant accounting might be a bit difficult once you start it. However, with good accounting standards, and an efficient accounting team, you can very well achieve success. Read More 

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