You have a restaurant? You are a rock star for managing this hive of activity. The smell of freshly baked bread or sizzling steaks can be intoxicating. However, the math that goes behind them might not seem as pleasing. It’s like peeling an onion–inevitable, and at times even tear-inducing. Understanding restaurant accounting is essential if you plan to make any restaurant accounting boston.
Consider this: you have food costs. The spiraling market prices can be a difficult beast to control. Imagine yourself as a tightrope-walker, balancing on a pit full of hungry lions. Always juggling, you purchase, cook, and plate the food. You might be able to tame your beast if you aim for the perfect food cost percentage. If you miss the mark, your budget woes could be the main course.
COGS is a term you may have heard before. It’s not some fancy dish created by a Michelin-starred Chef. Cost of Goods sold is both your friend and enemy in one. Cost of Goods Sold tells you how much it costs to prepare that delicious lasagna, but does not factor in the emotional cost to your customers who don’t leave any breadcrumbs behind.
You’ll be up all night counting employees or sheep. Payroll taxes and benefits, as well as time spent beyond the 9-to-5, add up faster than whipped topping on hot apple pie. It would be nice if humans could recharge like robots. But alas, people need to earn their living.
Keep an eye on your finances. This is the north star of restaurant management. A leaky ledger is the last thing you want. Confused by cash flow? Cash is the king and queen of your kitchen kingdom, along with their entourage.
Talking tech will turn your nightmares of accounting into sweet dreams. Accounting software is like your sous-chef. It does the gruntwork and allows you to waltz in the middle of the chaos. These essential bits aren’t complete without tracking, reporting and analyzing.
Don’t forget about the magic of budgeting. Put some budgets for the month on the grill to sear those savings. You’ll be able to save money for rainy days or for some new patio lighting. You can cook with whatever you have and save the best ingredients to use when it counts.
There’s also inventory. The joy of searching the shelves for that elusive jar saffron for the umpteenth or more time. Inventory management is like playing chess with a grandmaster except that the pieces are edible. Don’t waste anything, keep the essentials in stock, and make your inventory a winner platter.
You can’t avoid taxes. They’re inevitable, just like spilled coffee in the morning rush. If you plan well, they won’t be a bad taste in your mouth. You can’t crack an egg faster than a specialist accountant can. So, rely on them to guide you.
Clarity is the dessert after a heavy meal in restaurant accounting. Understanding the numbers will not always be easy, but it can help you to avoid a toast-burned fate. Just like cooking, this is a process. You’ll be able to serve up something delicious on your plate as well as in the financial sheet with a bit of humor and patience. Salute!