Restaurant owners, while being aware of the financial management of their businesses, are more likely to be involved in troubleshooting the day to day issues that keep things running smoothly. Unfortunately, a financial accountant is a luxury that many small restaurant owners cannot afford. This article will address six main accounting problems that restaurant owners often encounter and how to either prevent them from occurring or how to solve the problems once they do occur. Being a small business owner is always a challenge and the restaurant business is complex financially.
This article will concentrate on those issues that can be resolved with some good accounting skills and procedural methods. By teaching restaurant owners how to look for financial issues before they arise, an accountant, can help the owner correct or improve the financial techniques being utilized to manage profit and reduce any losses that are preventable. The six issues addressed here will focus on the:
Problem One – Absence of an Accounting System restaurant baden baden
Problem Two – When Major Operating Expenses are Higher than Total Sales
Problem Three – Menu Offerings
Problem Four – Food and Beverage Inventory
Problem Five – Issues that Occur When Inventory is Higher than Sales
Problem Six – Utilizing a Balance Sheet and Profit & Loss at Month End
By investigating these issues, which are common problems for restaurant owners, managing these issues and troubleshooting them before the restaurant is out of control financially is feasible and can help an owner utilize accounting methods.
Problem One – Absence of an Accounting System
The first issues that a restaurant owner must deal with when trying to avoid accounting issues is to invest in a good piece of computer software that will help keep track of all transactions. Nessel, who is an owner and financial consultant to restaurant owners, recommends QuickBooks for keeping a General Ledger of all financial transactions that occur in the restaurant. All financial transactions must be recorded in the General Ledger in order for accurate records to be maintained. Without attending to this, the owner is not going to be able to run the restaurant without maintaining accountability in the ledger. Nessel further states that, “My experience is that how well the business is being proactively managed is directly correlated as to how well the owner is managing his “books”. Therefore, it is a primary concern for the owner to set up an accounting system in order to ensure the business runs smooth financially. Not having accounting and financial controls in place is the number one reason most businesses fail and if a restaurant is in trouble this is the first issue to address. The Restaurant Operators Complete Guide to QuickBooks, is recommended by many accountants as a guide to help setup a good accounting system.