RIBBON TIPS TO HELP YOU MANAGE YOUR RESTAURANT’S ACCOUNTING In any business especially in the restaurant business, you need to keep a track of your accounts. This is essential for all businesses. It is extremely important to manage your accounts from the start. Even though the tack may seem a little overwhelming for new restaurant owners, who during the initial days of the business, tend to concentrate more on and pay attention to the day-to-day functioning of the business, as a result you may lose track of accounting and this may lead to problems later. If you are new to the restaurant business and don’t have much experience in accounting or comprehend how it works, then here are some useful restaurant accounting tips that will help you smoothly run your restaurant. In the business plan for your restaurant, you need to give importance to accounting as well. This also helps you become one of the top Hospitality Companies in Dubai. www.ribbon-me.com
RIBBON www.ribbon-me.com 1. Firstly employ a professional accountant: By employing a professional accountant or by hiring an accounting firm, you will be helping your restaurant business. By hiring an accountant you can focus on the operations of the restaurant while they take care of the accounting and maintain your financial records. This helps you outsource the burden of accounting 2. Formulate a profit and loss statement: A Profit and Loss (P&L) statement is the only means by which you can understand the financial health of your restaurant. This is an important step in the business plan for your restaurant. It is essential to update and review these statements regularly preferable every month and this can be done with the aid accounting personnel who are qualifies for the job. The Profit and Loss statement helps to give you a quick overview of the overall income and expenditure of the business, which is essential for making business decisions, including labour management, menu engineering, supply chain management and so on.
RIBBON www.ribbon-me.com 3. Review your expenses: It is very easy to fail to notice the different types of expenses that your restaurant incurs, as managers tend to focus on increasing revenues. However, it is extremely important that you manage your expenses from the start and this will help you establish a path that has a higher probability of being successful. One of the most important categories that you should pay attention to is inventory management; ignoring of this aspect will usually results in a lot of wastage and possibly even theft. As a result, the cost of the food will become higher and this may even reduce the overall profit of the restaurant. 4. Keep track your revenue: It is important to keep a track of the restaurant’s income sources, this is as important as reviewing the expenses. It is important to understand the various sources of income to analyse what’s successful and what isn’t and this will help restaurant managers and owners focus their efforts and energy to improve the business and sales accordingly.
RIBBON www.ribbon-me.com 5. Food Costing: It is of crucial importance to be able to generate a meticulous account of the cost of food for the business. To do this, we suggest you have a number of check points for the costing process. It is important to have accurate inventory management along with proper documentation (i.e. invoices, delivery notes, statements of accounts, etc.), and this will help the accountant to cost of food for the business for a month. These restaurant accounting tips help to formulate a business plan for the restaurant and becomes one of the top Hospitality companies in Dubai.
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