There’s a lot involved when running a restaurant: there’s the food, the staff, the facility, the customers, and marketing. It’s a very demanding business to run, and all the forward-facing aspects can make or break your business, but what about behind the scenes? Even if the food is great and your customers have glowing reviews, everything can fall apart if bookkeeping for restaurants isn’t done right.
You may have a basic understanding of how to track revenue and expenses, or even have a good idea of how to do bookkeeping generally, but with all of the responsibilities, you struggle to keep up with the daily transactions, reconcile bank statements, and prepare accurate financial reports.
NorthStar Bookkeeping wants restaurateurs to understand the value that a professional bookkeeping team can bring your business.
The Importance of Accurate Bookkeeping for Restaurants
Your bookkeeping needs to be in order for long-term success; if you cut corners or do it wrong, you could face serious challenges, like bouncing checks, running out of funds, tax audits, and even legal consequences.
Approximately 50% of businesses don’t make it past the five-year mark, and it’s really sad because these issues are avoidable if you handle your finances properly. Maybe it’s because many restaurant owners aren’t aware of financial challenges until it’s too late; they haven’t been reconciling books and keeping them up-to-date, or they are making data entry errors. Additionally, accurate bookkeeping provides you with valuable insights into your business’s financial health, allowing you to make informed decisions and identify areas for improvement.
Common Bookkeeping Challenges for Restaurants
While the importance of bookkeeping is clear, many restaurant owners still fall short when managing their finances.
There is a high volume of transactions that need to be logged and tracked on a daily basis when running a restaurant. Inventory receipts, payroll, cash flow, taxes, etc. Everything needs to be tracked meticulously, and while this isn’t the most challenging task to accomplish, it is very time-consuming and can pull you away from running your business.
Additionally, tax laws for restaurants can be complex, and it’s easy to make mistakes if you’re unfamiliar with the rules. Tax laws go beyond typical taxation and can cause costly and time-consuming tie-ups with the IRS when your finances aren’t managed properly.
Related Article: Common Ratios to Measure The Financial Health Of Your Business
Should You Outsource Your Restaurant Bookkeeping?
If you’re struggling to keep up with your restaurant’s bookkeeping, consider outsourcing this task to a professional service. Here are some of the benefits of outsourcing your bookkeeping:
- Save time: Outsourcing your bookkeeping can free up your time to focus on other important aspects of your business.
- Expertise: Professional bookkeepers have the knowledge and experience to handle even the most complex bookkeeping tasks.
- Accuracy: Outsourcing can help ensure that your financial records are accurate and up-to-date.
- Peace of mind: Knowing that your bookkeeping is being handled by a professional can give you peace of mind.
“When restaurant owners hand over the bookkeeping, they can have peace of mind to focus on front of the house must-dos including menu changes and expanding of services like catering”
– Paul Yee, Co-Owner, NorthStar Bookkeeping
Set Up a Free Consultation with NorthStar Bookkeeping
At NorthStar Bookkeeping, we specialize in providing bookkeeping services for restaurants. Our team of experienced professionals can help you streamline your financial processes, ensure accuracy, and provide valuable insights into your business’s performance.
Contact us today to schedule a consultation and learn more about how we can help with your restaurant bookkeeping.