What are the factors that differentiate the winners from the losers when it comes to running successful restaurant operations? The majority of restaurant owners across the US believe that in order to be successful, they must pay attention to these 3 areas: Enhanced business skills Efficient implementation of systems and processes Positive work culture If your situation happens to be same as the majority of other restaurateurs in the US, then you seem to find it hard in keeping track of your financial standing and profitability on a daily basis. The truth is that until you have a proper accounting system in place, it would be difficult for you to concentrate on your goal of running your dream hospitality business successfully. Most of the restaurateurs in the US face the following finance and accounting issues from time-to-time: Vendor Invoicing Tasks: Handling unpaid, lost or unposted invoices can waste a lot of your previous time as well as resources. This time should have been spent on managing your restaurant and focusing on other core activities. Incorrect Accounts Payable Reporting: Any time you face a situation of piled-up invoices that haven’t been yet entered into your accounting software; you may possibly feel lost and be unsure of the amount owed to your vendors. Undependable Checkbook Reporting: It can be a nightmare for a lot of restaurant owners that do not make use of accounting software for reconciliation or to determine if all the deposits have been posted correctly. Old-fashioned ways of talking to the bank officials every morning to confirm your bank account balance is not an ideal way of balancing your checkbook. On account of incorrect checkbook balancing, since you provide handwritten checks to your vendors, there are chances that you may not be able to evaluate the future cash flow. Prime Cost Reporting: Anytime dealing with the above-mentioned issues, you may find it challenging to generate weekly report, which compares your sales with the prime costs. The majority of in-house accountants now-a-days are young and lack appropriate expertise or training. This may result in incorrect reports and hamper the ability to read them correctly. This is essential since not highlighting the problem areas in your report with regards to goods and payroll expenses can cost your restaurant business many thousands of dollars every month. Key Income Producing Facts: Your restaurant’s income is directly proportional to the time invested in activities for attracting more customers, filling in tables, maintaining food quality and improving the overall dining experience. A happy customer will certainly turn into a returning customer and can also recommend your restaurant to his/her friends and family. Generally, accounting does not directly help in generating income for your restaurant. Having an established, thoroughly tested accounting process is essential any time amassing the building blocks designed to bring about profitability for your restaurant. This consists of paying bills by the due date, well-timed financial reporting and essentially identifying where exactly you stand monetarily; all these elements need accounting procedures that are effective and appropriate. A few of the common ideal practices for finance and accounting are: Day-to-day recording of sales as well as bills Comprehensive cost record keeping of purchase invoices food, wine, liquor as well as labor cost reports on a weekly basis Keeping track of and determining inventory on a weekly or month-to-month basis Keeping track of key inventory product usage on an everyday or weekly basis Designating primary people for accounting-oriented chores or outsourcing these kinds of activities Ensuring your POS sales data is integrated into your accounting program Making use of a POS system for keeping track of time as well as attendance Having a profit & loss statement generated at least once every month The point to highlight is that hospitality and food entrepreneurs who integrate back office accounting ideal procedures into day-to-day and regular practices are more inclined to be successful as compared to the ones that don’t opt for accounting software and solutions. Get in touch with Cogneesol to see how we could assist your business in better controlling cash flow and boosting profits at significantly affordable cost as compared to in-house headcount. Make Cogneesol your back office accounting