Restaurant owners open their monthly P&L reports, look at sales, then go down to the bottom and close the report.

Do these sound like familiar?

The report may be totally correct, but if they are the only two numbers being reviewed the majority of its value is left on the table.

They shouldn’t be more dependent on an accounting firm. They should feel more confident of their financials. It is not necessary to be aware of all accounting rules or be a slave to invoices for hours. You must be aware of why profit moved in relation to food and labor costs and what questions need focus next week.

This is the concept Bookkeeping Chef’s mission: to automate the bookkeeping work that doesn’t need an owner’s time. It also provides restaurant owners with better financial information that they can actually utilize.

Don’t stop at Month-End Numbers. Begin with Weekly Numbers

Restaurants do not operate on an annual basis. The managers plan the work for the week. The chef is ordering food today. Vendors change prices now.

Bookkeeping Chef offers weekly flash reports on prime costs as well as monthly financial statements.

The prime cost comprises two important areas that can be swiftly transported in a restaurant establishment: the cost of goods sold, and the cost of labor. According to data from Bookkeeping Chef, prime costs represent approximately 60% of sales in restaurants.

Suppose sales have barely changed, but prime cost rises. This percentage by itself will not provide the answer. The owner has an excuse to do some research.

Was there an increase in the amount of time working? Did overtime take place? Changes in food costs? Was a vendor invoice unusually high? Did the mix of sales changed?

It’s far more beneficial than discovering the same issue several weeks later.

Automate the repetitive Work

DIY bookkeeping does not need to be difficult. It can simply involve manually transfer POS (point of sale) totals into spreadsheets.

Automating the restaurant’s bookkeeping process can eliminate a lot of repeated data movement. The service integrates systems like POS and QuickBooks payroll vendor platforms and inventory management.

Automating for the sake of automating is not the main goal.

This helps to cut down on the time spent on manually entering data. It also keeps the financial records up-to-date so that owners can focus on reviewing information, rather than collecting it.

This creates a brand new method of bookkeeping for restaurants. The technology handles more of the mechanical aspects, but the owner is still involved with the financial implications.

P&L Questions: Learn to Ask More Effective Questions

A P&L will be much more manageable when you stop thinking of it as an accounting exam.

Start by taking a look at the numbers of sales. Examine the costs required to produce the sales. Compare the performance of drinks and food. Look at the cost of labor. Examine labor.

The importance of comparing periods.

Something that lies between these two lines is changing if sales have improved but profits have not. What changed when the cost of food rose? Review the staffing numbers and sales activities in case labor percentages have changed. Examine if the number appears odd, rather than assuming that the restaurant had poor times.

Bookkeeping Chef’s monthly P&Ls are finalized within five business days, allowing owners the opportunity to look over recent performance rather than receiving financial statements after the operational period has passed.

For restaurant owners who require bookkeeping solutions, speed is a must however understanding is the greater objective.

You don’t have to do everything yourself in case you do it yourself

There is a happy middle between having someone manage your financial needs and having your own full-time accountant.

Owners can continue to be involved in the accounting process without having to perform every task by hand.

It could be as simple as the use of automated systems to keep track of information flow, looking over the monthly P&L and weekly reports on the primary costs and asking questions in the event that an unexpected event occurs.

The bookkeeping services of restaurants that specialize in restaurant bookkeeping can help proprietors get the most from the reports by organizing the books and ensuring they are organized.

It does not mean the bookkeeper will be competent to handle all bookkeeping duties.

Owners who are able to be able to sit down and discuss intelligently about their business and the P&L are more likely to succeed.

Financial freedom is not to generate additional reports, but to attain financial freedom

Restaurants are a major source of data. Another dashboard isn’t automatically useful.

If an operator is able take a look at their weekly prime cost report and realize that something has changed, they can then open up their P&L to find out what is in need of additional analysis.

Bookkeeping Chef’s approach combines restaurant bookkeeping automation, weekly reporting, monthly P&Ls, and restaurant-specific financial support to make that possible.

Automatize repetitive tasks. Review your prime cost every week. Know the language used in your P&L.

There is no need to become an accountant.

It is essential to be aware of the financials of your establishment before you are able to become the proprietor.