How Restaurant Operators Handle Accounting and Reporting

Jun 2nd, 2015
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Northwestern State University of Louisiana
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Proven accounting processes are an essential building block toward achieving profitability. Timely financial reporting, paying bills on time, and knowing where you stand financially require accounting practices that are efficient and accurate.

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How Restaurant Operators Handle Accounting and ReportingProven accounting processes are an essential building block toward achieving profitability. Timely financial reporting, paying bills on time, and knowing where you stand financially require accounting practices that are efficient and accurate.In this survey, we asked operators to share how they accomplish various accounting-oriented tasks. The results were quite revealing as they showed that operators who adopted good accounting practices were more profitable than those that didn't.Some of the more common accounting best practices include:Daily recording of sales and receiptsDetailed cost-recording of purchase invoicesWeekly food and labor cost reportingCounting and computing inventory on a weekly or monthly basisTracking key inventory item usage on a daily or weekly basisDesignating key persons for accounting-oriented tasksUsing a POS system for tracking time & attendanceHaving a Financial Profit & Loss statement at least monthlyOf this list, there were three accounting best practices that were common to profitable operators.1. Having a Financial Profit & Loss statement at least monthly. 73% of operators that received monthly financial statements reported being profitable. Only 49% of respondents that received just quarterly or annual statements were profitable.2. Weekly food and labor cost reporting. 75% of operators that received weekly food and labor costs were profitable.

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