How Restaurant Operators Handle Accounting and Reporting
Proven accounting processes are an essential building block toward achieving profitability. Timely financial reporting, paying bills on time, and knowing where you stand financially require accounting practices that are efficient and accurate.
In this survey, we asked operators to share how they accomplish various accounting-oriented tasks. The results were quite revealing as they showed that operators who adopted good accounting practices were more profitable than those that didn't.
Some of the more common accounting best practices include:
Daily recording of sales and receipts
Detailed cost-recording of purchase invoices
Weekly food and labor cost reporting
Counting and computing inventory on a weekly or monthly basis
Tracking key inventory item usage on a daily or weekly basis
Designating key persons for accounting-oriented tasks
Using a POS system for tracking time & attendance
Having a Financial Profit & Loss statement at least monthly
Of this list, there were three accounting best practices that were common to profitable operators.
1. Having a Financial Profit & Loss statement at least monthly.
2. Weekly food and labor cost reporting.
3. Counting and computing inventory on a weekly or monthly basis.
The bottom-line is that operators that incorporate accounting best practices are more likely to be profitable than those that don't:
75% of operators that incorporate all 3 of these best practices we profitable
70% of operators that incorporated 2 of these best practices were profitable
61% of operators that incorporated only 1 of these best practices were profitable
Only 29% of operators that didn't do any of these best practices were profitable!
The intent of this survey is to provide our members with helpful insight as to the best way to handle accounting practices by seeing how other restaurants operate. Hopefully, you'll discover some tips and best practices that you can apply to your operation to help you become more profitable.
You can view the results and analysis for the following questions: