Why Bookkeeping Is Crucial for a New Restaurant Owner
The restaurant industry can be particularly cutthroat, and if you intend to set up a new eatery in a prime, city-centre location, then you've got your work cut out. You will need to make sure that it has its own unique theme, is well-run, can quickly gain a good reputation and get repeat customers. Each one of these is a challenge in its own right, but the owner also has to make sure that they balance their books and keep good records. What does a new owner in this industry have to think about when it comes to their accounts?
Typically, a restaurant will have several different categories of staff. They will need to rely on full-time and key individuals like the head chef or the maître d′, and they will have to bring in additional back of house staff during busy periods. They may employ others on a contractual basis as well or bring in students on a casual contract during the holidays. Each category may have its own taxation rules, and you will need to ensure that you get this right as if not, you may have to deal with a higher rate of staff turnover or issues with the ATO.
Above all else, you need to be able to show a clear profit on the sale of your food. To do this, you will need to collect and consolidate data from a variety of different sources as you manage your suppliers and pay your bills on time.
Cash Flow Crunch
You may also find it difficult to handle cash flow matters because your turnover may be cyclical. For example, you may be particularly busy at weekends or when there are major events in town but may go through much quieter periods during the course of a month. You've still got to get your accounts in order, however, as there will be big bills to pay on certain dates, no matter what.
If your records are all over the place, then you may find it difficult to keep up with inventory. This could be a disaster in its own right, as you may run out of a specific food ingredient as you approach peak period. If your staffing records are similarly dishevelled, then you may encounter a staff shortage at another busy period and all of these errors can have a long-term effect on the viability of your business.
The Better Approach
There's too much at stake to "wing it." Always work with an accounting service as they will help you to manage and balance all your books properly.