The owner of a restaurant opens the monthly P&L then looks over sales, skips down to the bottom line and then closes the P&L.

Sounds familiar?

It might be a completely precise report, but just by examining two figures, you leave the bulk of its worth in the dust.

Good restaurant bookkeeping shouldn’t make owners more dependent on an accountant. They should feel more secure of their financials. There is no need to be familiar with every accounting rule and be a slave to invoices for hours. It is important to know the reasons why profit fluctuated and what happened to the costs of food and labour and which issues require the attention of next week.

Bookkeeping Chef’s goal is to automate the bookkeeping process which don’t take the time of restaurant owners, and provide users with better financial information they can access.

Start with the Weekly Numbers Start with the Weekly Numbers, Not just Month-End

Although restaurants are not operating according to a calendar, they do require an P&L. This week, managers are planning their work. Chef orders food now. Vendors change prices now.

Bookkeeping Chef’s weekly Prime-cost reports are provided alongside the monthly financial statements.

The prime cost comprises two crucial areas that are easily relocated in a food service establishment: the price of the food sold, and labor. According to the data from Bookkeeping Chef, prime costs make up around 60% of the sales at restaurants.

Take a look at a scenario where sales are barely changing however, the cost of prime services are growing. This percentage isn’t an answer. It provides the person with the reason to conduct an investigation.

Is the hourly wage increasing? Did there occur overtime? Did the price of food increased? The invoice for a vendor was unusually high. What changes have occurred in the sales mix?

This is a lot more helpful than discovering the same issue several weeks later.

Automate repetitive tasks

DIY bookkeeping doesn’t need to be a manual process of transferring POS totals into spreadsheets after the service.

Automating the process of bookkeeping for restaurants will eliminate repetitive data movements. The service is able to integrate systems such as POS, QuickBooks payroll, vendor platforms, and inventory management.

Automation is not the objective.

It’s to cut down on manual data entry and keep the financial records current enough that owners can spend their time reviewing information instead of gathering it.

This leads to a different style of bookkeeping for restaurants. technology can handle the mechanics, while the proprietor remains engaged with the financial meaning.

P&L Questions: Learn to Ask Better Questions

If you stop thinking of a P&L as a test, it will become less daunting.

Begin by studying the number of sales. Start with sales. Compare the food and beverages performances. Examine the cost of labor. Examine labor.

It is vital to compare periods.

If the sales increased, but the profit didn’t, something between those two lines was changed. If the cost of food increased, inquire about what changed operationally. If labor percentage moved, compare staffing and sales activity. If a number looks strange look into it rather than thinking that the restaurant had an unlucky month.

Bookkeeping Chef provides monthly P&Ls that are completed in five business days. This gives owners the opportunity to look over the performance of their business, rather than getting financial statements after the operational period is over.

Speed is important, but the objective is to learn.

You don’t need to take on everything by yourself when you DIY

It’s not necessary to become your own full-time bookkeeper to avoid transferring the entire financial responsibility over to another person.

You could be a part of the business owner, but not have to do all accounting duties by hand.

It could be as simple as using automated system connections to keep the data flowing. Or it could be as intricate and complicated an analysis of the monthly P&L or a review of the weekly Prime Cost Report.

The specialization in restaurant bookkeeping can assist with this method by making sure that the books are organized and helping the restaurant owner understand what they mean.

The result is not a bookkeeping owner who knows how to accomplish every bookkeeping job.

Owners can sit down with a P&L and engage in a thoughtful discussion about the company.

The aim is financial independence without reporting

Restaurants already generate massive amounts of data. A different dashboard might not be useful.

The most valuable thing is when an operator is able to look at the weekly report of prime cost and realize that something has occurred, then open the P&L and know the best way to look into it.

Bookkeeping Chef’s method incorporates automation of bookkeeping in restaurants weekly reports monthly P&Ls, as well as specific financial assistance for restaurants to enable this.

Automate repetitive tasks. Check your top costs each week. Learn the terminology used within your P&L.

You don’t have to become an accountant.

Restaurant owners who are aware of the financial aspects of their own establishments will be able make better choices.