A restaurant owner opens the monthly P&L, looks at sales, then skips to the bottom line, and then closes the report.

Do you recognize the sound?

The report could be completely correct, but if they are the only two numbers reviewed the bulk of its value is being left unreviewed.

It shouldn’t make them more dependent on a accounting firm. It should help them become more confident in their own numbers. It doesn’t require an accountant or stay up all your entire night completing invoices. It’s essential to know how the profit fluctuated, what happened with the labor and food items and which areas require attention next week.

Bookkeeping Chef’s goal is to automate bookkeeping chores which don’t take the time of restaurant owners, while providing users with better financial information that they can make use of.

Start with the Weekly Numbers Instead of just the month-end

A monthly P&L matters, but restaurants aren’t operating monthly. The managers schedule the labor for the week. Chef orders food now. Vendors change prices now.

Bookkeeping Chef’s weekly prime-cost reports are available alongside the financial statements for the month.

Prime cost is the sum of two important areas which can be quickly moved in a food service establishment: cost of goods sold, and labor. Based on the information offered by Bookkeeping chef, prime costs make up around 60% of sales in restaurants.

Imagine a situation in which sales are barely changing however, the cost of prime services are growing. This percentage by itself will not answer the question. It gives the owner a reason to investigate.

Did hourly wages rise? Was there overtime? Costs of food changed? A vendor’s invoice was unusually high. Did the sales mix change?

It’s far more beneficial than finding the same problem two 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 bookkeeping for restaurants can assist in the repetitive movement of financial data. The system integrates with systems such as POS Payroll, QuickBooks, vendor platforms and inventory management.

Automation is not the objective.

It’s to make it easier for manual data entry and to keep accounting records up to date so that owners can spend their time reviewing data rather than gathering it.

This is a completely new way of bookkeeping in restaurants. The system is able to handle more of the mechanics, while the owner is still involved in the financial aspects.

Learn to Ask the P&L Better Questions

If you stop thinking of a P&L as a test it becomes less intimidating.

Start with sales. Begin with sales. Compare the food and drink performance. Look at the cost of labor. Look at labor.

Comparing periods.

Something that lies between these two lines has changed in the event that sales have increased but the profits haven’t. Consider what has changed in the company if food costs increased. If labor percentage moved between staffing and sales activity. If a number looks strange take a look instead of assuming the restaurant simply had a bad month.

Bookkeeping Chef will send monthly P&Ls in five days. This lets owners review the latest performance without waiting for financial statements, which typically arrive months after the conclusion of an operating time.

Understanding is more crucial than speed for owners who are looking for solutions to bookkeeping in restaurants.

DIY doesn’t have to mean Making Everything You Need

There is a middle ground between delegating the entire financial responsibility to another and becoming your own bookkeeper full-time.

You can be involved as the business owner, but not have to do all accounting tasks manually.

It could be as simple as making use of automated systems to manage information flow, looking over the monthly P&L and a weekly report on the primary costs or asking questions when an unexpected event occurs.

Restaurant bookkeeping services that specialize in the restaurant industry can assist owners comprehend the significance of reports by organizing the books and keeping them organized.

It is unlikely to find an accountant that can do all the functions.

An owner is able to have a discussion with an P&L regarding the business.

The objective is financial freedom and not the need for more reports

Restaurants already generate massive quantities of data. Another dashboard might not prove useful.

The real value comes when an operator is able to open a P&L report and recognize the change, and then review the prime-cost reports.

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

Automate repetitive tasks. Check your prime costs every week. Be aware of the language employed within your P&L.

You don’t have to be a professional accountant.

Owners who are knowledgeable about the financial aspect of their own restaurants are able to make better decisions.