Managing Your Restaurant's Finances
By Sandy Horwitz
Consider the following in determining how optimally your restaurant is managed:
- Is your accounting system based on the National Restaurant Association's Uniform System of Accounts for Restaurants?
- Is a complete physical inventory of all food & beverage items taken at the end of each reporting period?
- Are your financial statements completed and reviewed within seven days after the last day of the reporting period?
- Is your food cost broken down into meat, seafood, dairy, poultry, grocery, etc. to identify and isolate food cost problems or irregularities?
- Do you understand your balance sheet and review it in each period?
- Do you compare profit-and-loss statements to a budget or prior period?
- Do you calculate and track your inventory turnover (number of days of inventory on hand) on food and beverage?
- When reviewing sales, do you also consider the impact of customer counts and check averages?
- Do you know your weekly and monthly sales break-even points?
- Does your outside accountant understand the restaurant industry and demonstrate it by giving you valuable feedback on a regular basis?
The above points are excerpts from, "The Uniform System of Accounts for Restaurants-8th Edition" published by the National Restaurant Association.
These and other financial benchmarking tools are critical in optimally running a restaurant.
Sandy Horwitz is a Partner and the CEO at Goldstein Schechter Koch, a 60+ year-old certified public accounting and consulting firm based in South Florida. GSK is a leader in providing accounting, financial, audit, tax and management consulting services for members of the restaurant and hospitality industry. Contact us with any questions and to learn how our team can assist you in maximizing profits and minimizing taxes.
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