3 key healthy restaurant accounting habits with Vilardi
June 29, 2021at7:00 AM
Running a restaurant necessitates immeasurable work. From placing orders to ensuring everything is up to code, it’s easy to feel overwhelmed. However, this is no excuse to let restaurant accounting habits slip. Nothing ruins a restaurant faster than mismanaged money. Luckily, at Vilardi & Co, we have over 20 years of finance management experience. We guarantee to help organize, analyze, and process pertinent financial data to maximize profitability. With us, your bread and butter will be a sumptuous spread.
Here are the 3 best restaurant bookkeeping habits:
1. Record sales through POS
Recording sales through your POS is the foundation of healthy restaurant accounting. Every day, you should be documenting, tracking, and evaluating sales.
Thorough documentation enables you to settle end-of-day deposits far easier and is critical to long-term financial assessments and projections. Even better, tracking sales through your POS will help manage inventory and analyze labor costs.
These figures provide essential metrics and data that can enable you to maximize profitability and optimize promotions, opening hours, and employee scheduling.
Still, a quality POS system that’s fully integrated with your management software is essential. These systems automatically consolidate and categorize financial data and sales transactions, eliminate the need for manual data entry, and mitigate errors.
However, knowing what to analyze and how to conflate and assess data is daunting. At Vilardi, our decades of industry experience will enable you to make these critical evaluations.
2. Financial ratios
Another crucial aspect of restaurant accounting is financial ratios. To achieve and maintain healthy margins, habitually considering ratios is imperative.
Key ratios include labor costs, prime costs, and food costs. Labor ratios should account for up to 35% of sales. However, your prime costs, food costs, beverage costs, and labor costs should account for 60-65% of sales cumulatively.
Look from the front-of-house to the back-of-house and assess everyone on your payroll. This includes cooks, servers, hosts, and even managers. Include employee benefits and taxes in these costs, too.
Lastly, consider occupancy expenses. These expenses include rent, property taxes, utilities, and property insurance. These are fixed costs that can’t be adjusted to increase profits.
Striking the perfect financial ratios to maximize profitability is difficult. It requires years of experience and considerable training. Luckily, at Vilardi, we have both in abundance.
3. Prevent stealing
Theft can wreak havoc on your business. Even worst, it can occur in any amount, at any time, and be perpetrated by anyone.
The only way to prevent thieving or catch it before you’re hemorrhaging money is through healthy restaurant accounting habits. Bookkeeping systems enable you to monitor discrepancies closely and catch thieves. Plus, this vigilance will serve as a great deterrent.
Stealing can manifest in different ways, from managers skimming cash off daily sales to customers taking products. By instating a system, you will be able to identify anything suspicious in the books.
Thieving employees can be caught early by comparing the daily sales reports and bank deposits. You can audit internally to ensure bookkeepers aren’t stealing money. Reports will even help you recognize inventory discrepancies that suggest customer theft.
Contact us now for a consultation!
If you’re a restaurant in New York City or beyond and need financial management services, at Vilardi and Co, we provide the leading restaurant accounting solutions. For over two decades, we’ve been managing clients’ finances and supplying restaurants with financial services and strategies that maximize their business’ potential. Contact us now for a consultation! With Vilardi, your recipe for success has never been so simple.