As a restaurant owner, you’ve got a lot on your plate. From managing staff and keeping customers happy, to creating new menu items and handling inventory, there’s a lot to think about. Today we’re going to discuss the biggest mistakes restaurant owners make, and lay out our top tips for restaurant accounting. Read on to find out how you can make sure that you’re producing top quality food, all while running your business in a financially responsible way.
One of the biggest mistake restaurant owners can make is combining their personal and business finances. This includes using personal credit cards for business expenses, or business funds to cover personal debts. Not only can this lead to problems come tax time, it can also make it difficult to track your business‘ spending and revenue.
Be sure to open separate bank accounts for your business and only use them for business-related expenses. Consider getting a business credit card that you can use solely for business-related purchases. Keeping personal and business finances separate will save you a lot of headaches—and money—in the long run.
This is another costly mistake restaurant owners make. Your financial records need to include everything from accurately tracking inventory levels or estimating food costs, to documenting income and expenses. Without these, it will be very difficult—if not impossible—to make sound decisions about your business‘ finances.
Invest in accounting software or hire an accountant to help you keep track of everything. This way, you’ll always have the most up-to-date information about your finances at your fingertips, making it easier to make informed decisions about where to allocate your resources.
It’s a sad-but-true fact that every business goes through slow periods. If you’re not prepared for them financially, they can really put a strain on your bottom line. Make sure you have a cash cushion set aside specifically for slow periods; that way, if sales start to dip, you’ll still have enough money coming in to cover expenses, without sacrificing other parts of your budget (or worse, taking out a loan).
So, there you have it! Avoiding these three financial mistakes will help keep your restaurant on solid footing financially—no matter what the future holds. Of course, there are many other considerations that come into play when running a successful restaurant (such as payroll taxes, insurance, etc.), but if you can avoid these common issues, you’ll be well on your way to financial success! Sing out for any questions!
Your Outside Team
Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.
Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.
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