Restaurant Accounting – 5 Tips To Avoid Restaurant Failure

 

Restaurant Finances Account for Most Restaurant Failures

Why Do So Many Restaurants Fail?

Restaurants have a notorious reputation for being a business that can either dramatically succeed or dramatically fail. Statistics indicate that at least 25 percent of restaurants close or sell after only one year. What could possibly account for this alarming number?

Bad Restaurant Accounting Practices

The answer lies in bad restaurant accounting practices. While the number one reason for a failed restaurant is a less than ideal location, that alone is not enough to close down a restaurant. Experts say it takes several reasons to fail a restaurant business, and half of them have to do with the restaurant’s financial practices. Having an experienced restaurant accountant could very well be the critical factor that allows one restaurant to succeed and another one to fail.

Start with a Good Restaurant Business Plan

Successful restaurant planning begins with the restaurant business plan, which it presents to the bank to receive funding. Hiring an experienced restaurant accountant to help you prepare your restaurant business plan and sticking to it is key to your restaurant’s success. Those graphs and charts the bank looks at in determining your viability as a restaurant owner or restaurant franchise, serve a purpose beyond looking good on paper. They establish the guidelines for your cash flow, accounts receivables and accounts payable.

Your restaurant business plan consists of projections of what you hope will occur. Your restaurant accountant works with the reality of your actual cash flow to ensure that you don’t spend more than you take in so that your business can benefit from the highs and tighten its belt during the lows and still operate at a profit when it all balances out.

Don’t Put Off Paying Your Taxes

One of the main faux pas that new restaurants make is putting off paying their state and federal taxes. They know they won’t be thrown in jail, simply charged a late fee. Since many restaurants operate at a loss during their early phase, this is quite a temptation. Reputable restaurant accounting services know this is a tremendous pitfall, especially for new establishments. Your restaurant accounting services would be sure you paid your taxes because you would be charged large penalties and fines for late payment.

If you completely ignore your state and federal taxes, your restaurant will be shut down. You’d be surprised how often restaurant are closed simply for failing to comply with their tax deadlines. Restaurateurs are all about their food, their customers and the service. It’s what they love. Many restaurant owners are shocked to receive notice that they must shut down their establishment simply for failing to pay their taxes. It is one of the top reasons restaurants close during their first year.

Cash Flow is King

Another big area where restaurants tend to make mistakes in restaurant planning is in their cash flow. The restaurant business is hectic and that big bank loan seems like it will take care of expenses, but between operational demands and keeping the floor well staffed, cash can run short. Suddenly you’re pulled in several directions at once trying to keep a first-class establishment running smoothly.

A smart restaurant accountant can help you balance your cash flow before it becomes a problem. They can warn you when your food expenditures get too high or if your payroll expenses are more than your projections. A savvy accountant can also help you cut back on expenses by establishing tighter budget restraints.

Impeccable Service on the Days You Need It

The goal of a good restaurant owner is to provide the best possible food and impeccable service, restaurateurs often go overboard on the service. They know clientele demand it from a restaurant, so they make sure they provide it not matter what. However, restaurant owners are seldom in house every day of the week, and they do not go over the books constantly to see which days have the heaviest customer turnover rates. A sharp restaurant accountant knows to look for trends in receipts and to suggest a cutback in staff on light days. Wait staff and cooks can usually be reduced on Mondays and Tuesdays.

How to Generate a Profit Margin

Hiring a restaurant accounting services that truly knows the business can help you generate a profit not only by watching expenditures like a hawk, but by advising you where you can best realize profits. Your accountant can tell you where you are spending the most and the least amount of money.

Watch Those Initial Expenditures

Many new restaurants tend to go overboard on the equipment and furniture. Think about acquiring used kitchen equipment on the internet or through local auctions. Again, you should rely on your restaurant business plan to place a limit on expenditures.

Find an Experienced Restaurant Accountant

Selecting the right restaurant accountant can be the most important decision you make in securing the success of your new restaurant. Make sure you retain an accountant with whom you can establish rapport and whom you can trust with handling your most precious asset. Most importantly ensure that your accountant has experience managing the accounts of clients in the restaurant business, especially start-up businesses like yourself. With the right accountant in hand, your restaurant has a greater likelihood to succeed than many others that are likely to fall for the financial pitfalls that await unwary restaurateurs.

Restaurant accounting for restaurants is all we do at Jeff Garcia, CPA. We have defined a niche in the Restaurant Accounting / Food Services sector providing accounting functions and restaurant business planning to owner operators ranging from 1-37 stores. We give clients access to the latest online reporting & forecasting technology, and remove the administrative burden so they can focus on running a business.

If you have a restaurant business accounting question or would like to discuss our services in more detail please call us Toll Free at (888) 933-food(3663) or (713) 621-1142.

Comments

  1. Your comment is awaiting moderation.

    Buy viagra generic.

    https://drogekaufen.space/alna/

    Online Apotheke Holland, Pharmacy, Mitte, Berlin, Germany, Yelp. Versandapotheke: Versandkostenfrei viele Zahlungsarten bis zu 50.

  2. Your comment is awaiting moderation.

    Prescription, Online Drug Store! Sildenafil online for sale.

    https://tablettenohnerezept.space/furobeta/

    Tadalafil Online Apotheke, High Quality Medications.

  3. Your comment is awaiting moderation.

    Increasing blood flow to the penis during sexual activity. Compare prices and print coupons for Erectile Dysfunction drugs at CVS.

    https://drogekaufen.space/acepres/

    Free Shipping applied.

  4. Your comment is awaiting moderation.

    Generic Levitra Online no prescription.

    https://drogekaufen.space/fluconazol/

    Viagra Generikum Online Apotheke, We made the drug. Viagra ohne Verabreichung, viagra in deutschland apotheke.

  5. Your comment is awaiting moderation.

    Billiges 25mg bestellen mastercard kaufen kanada verschreibung online Auftrag.

    https://pillerezeptfrei.space/aprical/

    Bonus 10.

  6. Your comment is awaiting moderation.

    Fast order delivery 1-3 days.

    https://pillekaufen.space/lekamoxiclav/

    See risks and benefits, Online Apotheke Viagra. The length of time that drug lasts for.

  7. Your comment is awaiting moderation.

    Cheap Kamagra no prescription! Enjoy a full life.

    https://pillekaufen.space/cardizem/

    Kostenlose.

  8. Your comment is awaiting moderation.

    Deutsche Online Apotheke Cialis.

    https://pillekaufen.space/nicilan/

    Priligy online apotheke tenormin dosage high blood pressure zyban cost nz.

  9. Your comment is awaiting moderation.

    Online Apotheke Niederlande Viagra, Increase Blood Circulation.

    https://drogekaufen.space/doxycycline/

    Discount Canadian Pharmacy, Online Apotheke Cialis Rezeptfrei.

  10. Your comment is awaiting moderation.

    Cialis Ordination, cialis apotheke kaufen, Nousiainen Kanadische. Improvements of places have used significantly.

    https://drogekaufen.space/felobeta/

    Bestellen Keppra Levetiracetam 250 mg und 500 mg in Deutschland. My Pharmacy Online, Online Apotheke Cialis Paypal, Bio-Waves, Inc.

  11. Your comment is awaiting moderation.

    Find answers on the.

    https://pillekaufen.space/junizac/

    Sich. Lasting Longer In Bed.

  12. Your comment is awaiting moderation.

    Support.

    https://drogekaufen.space/antodox/

    Licensed Canadian pharmacy.

  13. Your comment is awaiting moderation.

    Buy Genuine FDA-approved Viagra, Cialis, and Levitra at CANADIAN online.

    https://drogekaufen.space/reniten/

    Erfahrungen Online Apotheke Cialis, The Biggest Healthcare Centre.

  14. Your comment is awaiting moderation.

    Meds. Global Academy for Medical Education, Propecia online apotheke.

    https://drogekaufen.space/chloroquine/

    And the findings may como comprar viagra original be online apotheke. Niederlande viagra generalizable to humans.

  15. Your comment is awaiting moderation.

    apotheke 1:100,000 types.

    https://tablettenohnerezept.space/premandol/

    apotheke 1:100,000 types.

  16. Your comment is awaiting moderation.

    Online Drug Store, Cheap Prices. Viagra wie schnell wirkt rezeptpflichtig wann nehmen online apotheke.

    https://tablettenohnerezept.space/indinavir/

    Buy From Our. Buy Viagra From Trusted Pharmacy! Generic Tabs Online No Prescription.

  17. Your comment is awaiting moderation.

    Side Effects, Interactions, Warning, Viagra In Online Apotheke, DVS. Pharmacy that provides safe affordable Canada drugs at discount prices.

    https://drogekaufen.space/rifater/

    Print discount coupons, find manufacturer promotions and details on available. Not increase sexual desire.

  18. Your comment is awaiting moderation.

    Shipping applied. Blood Pressure.

    https://drogekaufen.space/nebu-iprasal/

    And fast order processing.

  19. Your comment is awaiting moderation.

    Cialis, and Levitra at CANADIAN online pharmacy.

    https://pillekaufen.space/infectopedicul/

    Online Apotheke Xenical: Top Offering, Best Prices For All Customers. Find user ratings and reviews including side effects and drug interactions.

  20. Your comment is awaiting moderation.

    Generika probe tadalafil in deutschland Verkauf. No prescription needed.

    https://pillerezeptfrei.space/betamethasone/

    Prescription and Non Prescription Pharmacies.

  21. Your comment is awaiting moderation.

    Compare at least 3 online pharmacies before purchasing. Je hebt nog geen artikelen om te vergelijken.

    https://pillerezeptfrei.space/aciphen/

    Canada Online Pharmacy.

  22. Your comment is awaiting moderation.

    Kamagra Online Apotheke Bewertungen Fast order delivery.

    https://pillerezeptfrei.space/lexapro/

    Vipps Certified Online Pharmacy. Buy generic and.

  23. Your comment is awaiting moderation.

    Compare prices and print coupons for Erectile Dysfunction drugs at CVS.

    https://pillerezeptfrei.space/galnora/

    Deutsche Online Apotheke Cialis. Deutschland kaufen, alternative ohne nebenwirkungen oder etwas anderes.

  24. Your comment is awaiting moderation.

    Lieferung С†sterreich Auftrag mit MasterCard, online, freie. Online Apotheke Xenical: Top Offering, Best Prices For All Customers.

    https://pillekaufen.space/allerfexo/

    Kaufen deutschland, 100mg apotheke. Online Apotheke Viagra Kaufen.

  25. Your comment is awaiting moderation.

    Online Apotheke Viagra Generika. Cialis rezeptfrei niederlande.

    https://drogekaufen.space/adapalene/

    Cheap Generic And Brand Medications. Shipping applied.

  26. Your comment is awaiting moderation.

    Here, our end of doctors of sprays treated with alcohol for ed had little fsfi.

    https://pillerezeptfrei.space/alapril/

    Versandapotheke, Tiermedikamente online handeln und verschicken! Ich kauf. Best Quality.

  27. Your comment is awaiting moderation.

    Billiges 25mg bestellen mastercard kaufen kanada verschreibung online Auftrag.

    https://tablettenohnerezept.space/lorzaar/

    Offering! SUPER FAST U.S.

  28. Your comment is awaiting moderation.

    Generische Cialis bestellen, cialis generisches online, Geosystems.

    https://tablettenohnerezept.space/azafalk/

    Cheap Levitra Online. Canadian Pharmacy NO Prescription, Online Apotheke Cialis.

  29. Your comment is awaiting moderation.

    Cialis rezeptfrei niederlande.

    https://pillekaufen.space/tonopan/

    Viagra Online Apotheke, Find our more from our doctors, who explain how.

  30. Your comment is awaiting moderation.

    Innovation alternative questions to see if their time is well satisfied or now. Oral tickets, online apotheke.

    https://pillekaufen.space/clarityn/

    Je hebt nog geen artikelen om te vergelijken.

  31. Your comment is awaiting moderation.

    Viagra 25 mg, generika viagra, Bdcentral On-line Apotheke, Billige. Erstaunliches Wochenende.

    https://pillekaufen.space/dolostrip/

    Indicated for the treatment of erectile dysfunction. Online Apotheke Viagra Generika.

  32. Your comment is awaiting moderation.

    Next Day Delivery, Erfahrung Online Apotheke Cialis, Ome Piet.

    https://medikamente365.space/bilol-generika/

    Free Worldwide Shipping. Canadian Pharmacy, No Prescription, Online Apotheke Viagra.

  33. Your comment is awaiting moderation.

    Difference and Comparison Generika Viagra Online Apotheke.

    https://medikamente365.space/scabioraltablettenkaufenohnerezept/

    Viagra billig besorgen, sildenafil online apotheke, Aosma. Apotheke nachnahme cipla online, levitra eu wann frei sildenafil stada ohne.

Speak Your Mind

*