Wednesday, 18 Aug 2021
Many people think that food entrepreneurship in Melbourne only requires the knowledge of preparing culinary delights and serving delicious fare in a palatable manner. However, there is one more essential quality that a restaurant owner needs to cultivate, and it is related to managing the finances.
Most restaurants are brimming with customers during peak hours, and it can be exhausting to keep track of all the transactions. Therefore, entrepreneurs hire professional bookkeepers in Melbourne to keep their books updated and make their businesses grow. Efficient bookkeeping is a prerequisite for building an entity that is financially stable.
Thus, restaurant owners must be aware of the ways of staying on top of their books to leverage the financial capabilities of their business and maintain a positive cash flow. Here are a few bookkeeping tips specific to the restaurant industry that assure desired growth.
Every business has to perform a variety of operations and the data of all the processes needs to be recorded. Traditionally, all the financial information was entered manually in ledgers, which was tiring and time-consuming and often led to errors in calculations.
However, with the advent of technology, it has become easier to keep records of all the numbers using accounting tools. Restaurant owners in Melbourne can take advantage of customised accounting software that has exclusive features to meet the needs of the food business.
These tools are capable of monitoring the daily food sales, beverage sales, operating costs, expenditure on stock, labour costs, etc. Entrepreneurs must also use Point of Sale (POS) systems to automate the tracking of daily sales and generate a sales report at the end of the day.
It is essential to choose a POS that can be integrated with the restaurant management software seamlessly.
Restaurant businesses in Melbourne require inventories almost every day and must make payments to vendors and suppliers on time. However, tracking all the bills and their payment dates can become challenging, with vendor deliveries happening frequently. Thus, bookkeepers make sure that the accounts payable are kept up to date without any delays.
They help in maintaining a healthy relationship with the vendors and suppliers. It is essential to process the payments on time to avoid losses due to late fee payment charges added to the bill.
It can also strain your relationship with the vendors in Melbourne and affect the supply chain. Thus, make sure that all the bills are arranged in the system meticulously and paid before the deadline.
Every bookkeeper recommends cost-cutting measures for business growth as it aids in improving the cash flow. The business owner should be aware of the running expense as well as the fixed costs. The ongoing costs for a restaurant in Melbourne include a lease, salaries, utility bills, taxes, supplies, marketing, etc.
Food entrepreneurs should work on cutting down redundant expenses that can affect the flow of capital in the business. Reducing unnecessary expenses can help in better inventory management and less wastage of resources.
This is the reason why bookkeepers are committed to providing inventory management that helps in reducing costs and maximising productivity. In addition, payroll and taxes in Melbourne must be handled efficiently and in compliance with the laws and obligations of the state.
Financial reports are the basic requirement of bookkeeping and are needed to understand the incomings, outgoings, profit, and loss of the business. These reports give an estimate of the financial health of the restaurant and allow the entrepreneur to make informed decisions related to future expenses and investments.
The profit and loss statement is needed to understand what is working for the business and what is leading to losses. These reports help in making improvements to the restaurant. Bookkeepers are adept at generating these reports every month or quarter, depending on the requirement of the business in Melbourne.
If you are doing it on your own, do not round off the numbers to ease the burden of computing. It can alter all the calculations. Accuracy of the reports is of utmost importance as miscalculations can lead to losses and tax penalties.
Like retail businesses, restaurants in Melbourne too have to manage several transactions during work hours. Although they are recorded by the bookkeeper, they need to be cross-checked by reconciling the books with bank accounts regularly.
It involves matching the figures in your books with those appearing on the bank statement, credit card statements etc. It helps you to confirm that all the transactions have been recorded accurately and nothing has been missed.
The accounting tools available these days make bank reconciliation quick and effortless. It helps in identifying misplaced or missed invoices or incorrect entries. Also, automation aids in streamlining the process and reducing the time spent on these exhaustive tasks.
Thus, restaurant owners need a robust bookkeeping system in Melbourne to manage the burden of the huge number of sales taking place every day. A systematic and automated process can help in saving time, effort, and money.