Daily Archive: March 29, 2015

Bookkeeping Tips for Startup Restaurant Owners

Let’s face it: Money defines the success of a business. Any business, including those in the restaurant industry, need to make money to survive and continue their operation. But in order to make money, business owners and managers must know how to control their finances. Effectively keeping track of your finances will put your business in good place and help you achieve the growth that you desire. Sure, tracking your finances is only part of running a business, but learning these tips is a great help, especially in the long run.

restaurant bookkeeping

Manage your cash flow

Cash flow management is the process of tracking all the money that goes in and out of your restaurant. For someone new in the restaurant industry, this step can be overwhelming because keeping your profits and expenses balanced is truly not that easy. But the rule of a thumb is to always have extra cash at hand to cover your due and urgent expenses. You can’t stay in the business if you can’t pay your bills on time! Therefore, it’s very crucial to learn how to manage your cash flow effectively.

Keep your records organized

As a business owner, you should know the importance of keeping your business records organized – all the time. This will help you keep track of your profits and expenses, prepare essential financial statements, comply with tax rules and regulations, make precise business decisions, and more. Some of the main records that you must keep updated and organized are your sales, expenses, taxes, bank statements, and payroll. There are many ways to do this: You can buy and design your own ledger, create your own worksheet template, use an excel spreadsheet, or use bookkeeping software where you can record all your transactions on a daily or weekly basis.

Track your inventory

If you’re an independent restaurant owner without a manager that can do this job, it’s crucial to perform an inventory regularly, at least once a week. Your business inventory includes all the products, ingredients, and supplies you have in your restaurant and stock room. Your inventory is an important factor in your business as it represents an investment in terms of food, beverage, and supplies that are needed to generate profits.

Learn to use accounting software

It’s true that even if we’re now in the digital age, many businesses, particularly small ones, still use manual bookkeeping systems to keep track of their business transactions. But while it’s still fine to use a manual bookkeeping system, it’s crucial to learn how to use accounting software. These programs are specifically designed to help business owners save a lot of time and calculate profits and sales more effectively. If you know how to utilize such programs, you can free yourself from the hassle of analyzing and computing your finances all the time and you can give yourself a peace of mind as these programs guarantees to give you comprehensive and precise reports.

Of course, as your business grows, you’ll find that you cannot do everything on your own. When you’re already at this point, it’s important to start hiring staff and experts who can help you run your business more effectively. As for the accounting or bookkeeping, you need to hire an accountant or bookkeeper to keep track of your financial records. A growing business means dealing with more complicated financial transactions, so it’s wise to get help from others when you start to expand.

Want to make your retirement more satisfying? Cook at home.

Some of the common things that people do when it comes to planning their retirement are deciding where to live and putting their finances in order, such as investing in IRA plan or SMSF. Well, these things are indeed crucial to secure your future. However, what I noticed is that most people tend to forget including the things that they love to do when they plan their retirement. As a result, they don’t enjoy their golden years. Sure, they have a house to live in and money to burn, but they always find themselves unsatisfied because they feel there’s something lacking.

Well, I have some words of advice for people who are planning their retirement – take up a cooking class and spend more time cooking at home when you retire. I know a lot of people who are cooking in their retirement. And believe me when I say that when I see these people cook, the happiness that I see in their eyes is truly beyond words.

Senior couple at kitchen

I’ll tell you a secret. If there’s one thing that makes people happier in retirement is that the ability to cook at home. Cooking is not only a job, but it’s something that people find satisfying, fun, and valuable. It’s a fun activity that allows you to become creative as much as you would like. When you prepare your own food, you can experiment ingredients, explore new recipes, decorate your plates, and do many other things. The best thing is you’re able to do it together with your children, life’s partner, and friends. Isn’t that amazing? Cooking at home is one of the best memories you can ever make with your family. Well, the bonus is making a tasty meal.

Learning how to cook…

Okay, you have one problem – you don’t know how to cook! Fret not. Even chefs who are working professionally now begin their career by learning the basics of cooking. So if they learned how to cook, you can learn how to cook, too! But how?

One way to learn how to cook is to attend culinary school. There, you will learn all the basics and different techniques in cooking, including the proper way of using knives, handling food, keeping cooking equipment, reading recipes, and making your area clean. You will also learn different cooking methods, including baking, grilling, frying, boiling, stewing, and roasting. Vocational and trade schools typically offer courses in basic cooking, which usually take from several weeks to a year.

Well, if you don’t have the time and budget to attend cooking classes, another great way to learn how to cook is to learn by yourself. You can watch videos online or television shows on how to make recipes and just follow them. You can also buy some good cookbooks and magazines, read them, and follow the instructions. Of course, it’s understandable if you can’t get the taste that you want at the start. But with practice, you’ll eventually learn and be able to become a good cook.