Successful restaurant operators are smart financial managers – we can help
The success of a restaurant is significantly impacted by the operator’s ability to control operating expenses, maintain proper accounting and inventory controls and making timely adjustments based on a review of key financial statistics.
Restaurants operate on low profit margins as a result of intensive labor and food costs, which typically range from 60-70 percent of gross sales. Unlike fixed expenses, restaurant owners can control these percentages by lowering expenses, changing brands, cutting labor costs, reducing portions or raising menu prices.
Efficiently managed inventories, which includes all of the food ingredients, supplies, and extra products needed to prepare and serve meals, gives way to a more profitable restaurant. Excess inventories lead to theft, accidental losses, spoilage and kitchen staff failing to control portions properly. Failing to keep complete daily inventory records makes it difficult to spot food losses or calculate food costs in proportion to sales.
Daily and weekly management reports can show when labor or food expenses are getting too high, spot unexplained losses of food staples, recognize when employee meals are costing too much and identify how discounts and complimentary meals affect profitability. Established restaurants often fail to update their portion costs on a regular basis to account for price increases.
Bovard CPA Group provides services to assist the restaurant owner meet the challenges faced within the restaurant industry:
Developing a customized financial reporting system that includes appropriate daily and weekly management reports
Implementation of purchasing procedures, inventory controls and food menu costing
Implementation of cash controls
QuickBooks for restaurants
State and local sales tax reporting
Federal, state and local income tax planning and reporting
Bovard CPA Group provides financial accounting, tax and consulting services for Greater Chicago’s restaurant operators.
Bovard CPA Group knows restaurant accounting from the kitchen floor up. We serve many of Chicago’s restaurant operators and understand the unique vagaries of the food industry. We serve individual restaurant operations, multiple unit restaurant operations, restaurant franchisees and restaurant franchisors.