Talking Cents

Tips For Accounting For A Small Business Restaurant

When starting any business, it can be an exciting time- especially for new restaurant businesses. However, due to the endless to-do list that restaurant owners have to manage, things can turn south for the business very quickly if not handled effectively. We at M.A.S Partners, the leading small business accounting firm in Sydney, work with hundreds of different small businesses, and have a vast amount of experience in the restaurant industry. We understand that in order to succeed in the competitive restaurant industry, you will have to manage your finances correctly, keeping your margins high. One of the biggest reasons restaurants fail to succeed is due to the lack of financial control- letting transactions go through and keeping thin margins. Like every small business, it is important to get the accounting aspects of your business in order.

Flexible Back-End System

Back-end systems support back-office applications- managing orders, inventory, and supply processing. When choosing a back-end system for your restaurant, it is important that you choose one that is flexible, as restaurants often do a lot of work outside conventional working hours, such as holidays, lunchtimes, evenings, and weekends- which will affect the payroll. As such when choosing your back-end system, it is important that it can handle open shifts and replacements, as employees often cancel shifts; employee tips; and turnover of employees, as many employees may end up quitting, so a system with a simple setup for new employees is necessary.

Have Competitive Prices

Often choosing the pricing of your menu can be a difficult task. You need to consider the total cost of ingredients, and the cost to hire the staff, as well as the prices of competitor restaurants. Your profit margins will largely depend on exactly what you are aiming for. If you are looking to bring in new customers, setting your prices low is generally the way to go. However, the lower your profit margins, the less you can handle financial struggles. Hiring a small business accountant for this can often help with setting your overall prices- as they will ensure that you are making enough profit to sustain.

Have Receipts For All Your Business Transactions

With an effective accounting system, you will be able to predict how much produce you need to buy, to ensure the waste is kept to a minimum. However, there are situations where you cannot predict- such as an extremely large order of the same dish- where you may need to go out a buy additional produce. In these situations, it is essential that you record everything you buy, so you can process every receipt, so you do not lose money on tax.

Hire A Small Business Accountant

With so many different accounting reports and can be difficult to learn how to write up and analyse them all- especially when you are focused on growing your restaurant. Consider hiring from M.A.S Partners, a small business accountant which handles all your finance analysing needs in the most efficient and effective manner. or more information on our services, click here.