How to Implement an Accounting System for Your Restaurant- PART 1

If you have decided to open a restaurant for the first time, it may be because you are passionate about food, and you would love to be in the hospitality industry, too. However, you should also know that as important as those are, they are not the only things you should master to ensure that your restaurant thrives. In fact, for most restaurants that fail in their first year, it's usually not the food or the service that's the problem. It's often due to bad decisions and practices.


For one, many restaurants fail to set up a reliable accounting business which is a necessity for all small businesses. Therefore, you should make it a point to have one when you start your restaurant.


In this two-part post, your trusted Gold Coast accountant is going to provide you with information on how you can implement a basic accounting system for your restaurant:


Hire a Bookkeeper or Accountant


When you start your business, you need to have a financial plan. This will be important in helping you know how much you're going to spend and how much income you will get.


To help you plan, you can hire a bookkeeper or even an accountant. The good thing about both is that they will help you produce an accurate financial report or income statement. This means that you will always know how much money you have in hand, how much you should be spending, and how much you should or can invest.


Choose a Good Accounting Software


Although there are numerous options for software on the market today, you should take your time choosing one that suits your needs and requirements. For instance, if you're managing a restaurant, you are likely to have a lot of expenses and purchases. Thus, software that can easily track and monitor these is likely the best option.


Determine the Accounting Method You Want to Use


Though there are numerous accounting methods that you can choose from, cash accounting is one of the most popular and best methods, particularly for small businesses. This method is ideal for businesses with little capital that can't afford to carry inventory.


Select a POS System for Cash Management


The point of sale system, or POS, is a must-have for restaurants. The good thing about a POS system is that it helps you track your restaurant's usage of different cash management. For instance, it tells a business how much money it has earned for a day, the average number of customers in a day, and even the average spending of a customer. Based on those reports, you can easily come up with the amount of money that can be used to purchase food, cover expenses, and even pay the bills.


Compile Your Chart of Accounts


A chart of accounts is a list of all your accounts that you have to monitor regularly. This includes your assets, liabilities, equity, sales, purchases, and expenses.


You can easily come up with your chart of accounts by yourself or ask your accountant or bookkeeper to help you. To ensure transparency and traceability, you should put a cross-reference on your chart of accounts to easily find and connect specific accounts in different forms.


Conclusion


By following these tips, you can implement an effective accounting system and avoid accounting-related problems. This will give your restaurant a higher chance of succeeding. Remember that even if you are just starting out with your restaurant, you’re still going to need the services of a small business accountant to ensure that you do things right from the get-go. Of course, it’s a good idea to learn more about the implementation of an accounting system for restaurants so make sure to watch out for the second half of this post.


The ECommerce Accountant is among the most trusted Gold Coast accountants who can provide you with expert accounting services. Contact us today to learn how we can help you!


0 views0 comments