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Make restaurant accounting work for you

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Many restaurateurs fall into the trap of trying to do everything themselves, including accounting and payroll. But what if I told you that even if you save hundreds of dollars each month without paying for these services, you are probably losing thousands of dollars each month in operating expenses? Let’s talk about how to manage restaurant accounting so that it best serves you and your restaurant.

Many restaurateurs manage their restaurant’s accounting because they want to save money. For example, payroll companies can vary from $250 to $500 per pay period. When you pay weekly, fortnightly, or fortnightly, it can seem like a huge savings to do it yourself. But are you following all payroll regulations? Are you using QuickBooks or some other software and are you hoping that they’re going to sweep your taxes for you, that they’re going to make sure everyone gets paid, that rate changes haven’t happened, that there Is there a data entry error? Will they keep track of when someone hit their FICA/SUI limit so you can stop taking that on the paycheck? Are you going to do all of this on your own, or is this a job better suited to a payroll company?

Another reason restaurateurs want to manage their restaurant’s accounting is to review their numbers more quickly. Many restaurant owners work with bad accountants or bad accountants, and they don’t see their numbers for 30 days, 60 days, 90 days or more. I’ve seen situations where a restaurant owner only gets his numbers at tax time, when it’s too late to do anything. Once you’ve had one or two bad accountants or experiences, even if with a good accountant who just didn’t treat you the way you should at first, it can make you a little hesitant to believe you’ll receive better results. with someone different. You think if you want something done right, you might as well do it yourself.

But if you don’t have an accounting degree, you’re probably messing up your books. And even if you have a degree in accounting – because I have members who are accountants who work in restaurants – you’re wasting your time. Yes, you know how to do all of this, but you’re not spending your time in your restaurant wisely.

So what should you do to manage restaurant accounting? Here are my recommendations.

Be sure to hire a bookkeeper, an accountant, a combination of the two, or an office that has it all.

You want professionals who are going to pull together all the information on a weekly or daily basis, make sure your bills are paid and your books are bound. Make sure they advise and help you make the appropriate changes and that you have the correct chart of accounts. Your books are a newsletter you can refer to to understand your business and use it to make good decisions to move your business forward.

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• Hire a payroll company.

They will follow SUI and other limits and the laws that come with them, and they will only withdraw money from your account for taxes. This way you stay in control of your money in your account or a payroll account, and some payroll companies don’t use your money to make more money. But the main reason to hire a payroll company is that they take responsibility that if they file incorrect taxes for you, or if they didn’t take the right amount, or if they filed incorrectly, the IRS screwed up, no matter what, they I’m going to step in to make sure they fix it. This releases you from any liability if they make a mistake in your payroll. As far as taxes go, that’s huge in itself.

Meet with your CPA on a quarterly basis.

Yes, you can use an accountant or accountant to do your books on a daily, weekly or monthly basis, but on a quarterly basis you should have your books reviewed by a professional. A CPA should advise you to look at your numbers, see what your quarterly taxes should be, and what decisions you could make to reduce your tax liability to make your life easier. A good CPA should more than pay for itself. It doesn’t matter if they charge you $2,000, $3,000, or $10,000, they should exceed that amount when it comes to your taxes and your business on a quarterly basis. He’s an adviser.

When you transfer these tasks to professionals, you and your business benefit.

1. You will have time to work on the budgets. As a restaurant owner, you need to create your plan for success, which you will do now. The nice part of good bookkeeping is that you can put your budget next to your bookkeeping for each month and find out where you hit or miss and decide what new systems to put in place to get you back on track or to change your reality. You can’t do that if you don’t have good books in a timely manner.

When you set a budget and get those updated numbers, it’s a simple input and you can proactively manage your business. When you hire someone else to do the accounting for your restaurant, it allows you to think strategically for your business.

2. You save time to develop, manage and empower your managers. Your job is to lead the team. Make sure they know what you want done, how you want it done, how much you want it done, and by when. You also have to manage all those new priorities and tasks, from manager meetings to a list of tasks you want them to do for projects. You just don’t give work to your employees and it gets done. You need to take an active role and then hold them accountable. They decide whether to do their job or not, and they are responsible for the resulting consequences.

3. You can also have peace of mind that things are getting done. You know your numbers are getting done. You know, your managers get things done. You lead your team.

By forgoing accounting, bookkeeping and payroll, you free up time to focus on your business. It might cost you hundreds of dollars every month, but by leading your team and becoming the leader your restaurant needs, you’re saving hundreds of thousands of dollars a year because you’re executing your plan, making sure you bring changes if necessary to make sure you make the money you deserve and have managers in place to run the business. So instead of doing the work, outsource the task and then use those numbers to drive your business forward.