Owning a restaurant is obviously tough and is not an easy business to succeed in. The statistics say nearly 25% of new restaurants will fold within the first 12 months. It is not enough to sell good food; as an owner you need to manage the money. For most people, restaurant owners included, money management is not their strength. That is why you need an accountant and accounting system to help you manage and keep the hard earned dollars that you make. To run your operation smoothly you need money and the knowledge of where it is and where it’s going. An accountant is vital in giving you that information.
Here is a small list of what accountants can do for you:
- Payroll & Payroll taxes – Payroll is a significant expense and can have the added complexities of garnishments, health care and 401k deductions and annual W-2 forms
- Sales Tax Reporting – Your state and local governments frown upon you forgetting to pay them.
- Profit and Loss Statements – This indispensable tool helps you know where the money is.
- Accounts Payable (& Receivable if you have any) – Your vendors, landlord and utilities all need to be paid on time.
- State, Federal and Payroll Record Keeping – You need a good record keeping system and a backup just in case.
- Cash Flow Statements – The Cash Flow Statement is a line by line list of all of the expenses and revenues and changes within the balance sheet.
- POS system- Your accountant can help you make sense of it and identify areas of exposure and opportunities.
- Inventory Control – Your inventory amounts are used to determine your profit and loss. The accountant can help design an efficient inventory counting and control system.
Each of these accounting functions contains complex reports, some of which need to be compiled and completed daily. As a business owner you have little time to keep up with tax and payroll law changes. Your accountant is a partner in your business who wants you to succeed.