Restaurant Systems - Financial Reporting
Financial Reporting Systems includes everything you do to measure the results of your restaurant's operations, marketing and people management.
Our financial reporting systems encompass much more than simple accounting, profit & loss and cash flow. They include a combination of daily, weekly and monthly reporting and accounting systems to help you track sales and expenses, identify potential cost-control problems and manage your restaurant more efficiently.
SYSTEM: Restaurant Accounting Checklist
The more organized and efficient your period end accounting process is, the more accurate your financial statements will be and the quicker you'll get them. Give your bookkeeper or accountant a tool that will help them do a better job of crunching your numbers. Using a methodical and well organized checklist system promotes consistency in your monthly numbers.
SYSTEM: Ideal Cost Calculation
The Ideal Cost Worksheet is a tool that helps to find the variance between "Ideal" cost and "Actual" cost. Ideal cost is calculated by multiplying the cost of each menu item by the number of items sold for a given period. Add the total menu cost for each item to arrive at the Ideal cost for the period. The most effective way to use the Ideal cost Worksheet is to make sure all menu items are programmed on your POS - avoid using Open Food keys if possible.
SYSTEM: Voids Tracking Log
Theft prevention 101 - never let your bartenders, servers or cashiers void items after they have been rung up. It's ok to give them the ability to void (item correct) an item "while" they are in the process of ringing the check; however, once the check has been recorded (saved or printed) then only management should be allowed to perform a void function. But theft prevention doesn't stop there - in fact, we've found that management is more likely to steal if when given the authority to perform voids (for overrings, mistakes, etc.) they are not held accountable for recording the reasons for voids or after-the-sale adjustments. Use the Daily Voids Log Sheet to record detailed reasons for making POS adjustments, then routinely compare to POS reports, either in daily checks or weekly management meetings.
SYSTEM: Daily Sales Report
Sound financial tracking begins with the accurate recording of sales. The Daily Sales Report (DSR) is the core tracking element for controlling cash. This check and balance method allows you to easily spot discrepancies while providing an accurate basis for recording sales to your accounting software.
SYSTEM: Profit and Loss Reporting
Your P&L should not only tell you whether your restaurant is profitable, it needs to provide accurate cost of sales, labor and operating expenses in a way that helps management identify challenges and track progress through numbers. Standard P&L reports from off-the-shelf accounting software are not restaurant specific, and therefore are virtually useless as a management tool.
SYSTEM: 13 4-Week Period Accounting
One of the most effective management practices is to manage by the week. Sales forecasts, labor schedules and product ordering are typically based upon weekly expectations. Unlike the typical 12-month calendar, the 13 4-Week accounting cycle consists of 13 accounting periods of exactly 4 weeks (28 days) which complements the weekly cycles used in many restaurants and provides for more relevant period comparisons on the profit and loss statement. This system includes a template with begin and end dates for each accounting period over a 3 year period.