Many restaurant owners are very passionate about their restaurant and the food they serve, but have little business experience and financial knowledge. Running a restaurant can be very complicated and takes thorough research and analysis. It is very common for restaurant owners to overlook the importance of having accurate financial reporting.
Like any other business, it is important that restaurants constantly evaluate their financials to pinpoint problems so that they can be resolved quickly. Restaurant owners should have an accurate income statement, balance sheet, and statement of cash flows. Accurate monthly financial statements identify weak areas and where improvements can be made. They also show the effect of management’s decisions, like hiring a new employee, switching suppliers, or making menu changes. The focus for someone reviewing these financial statements is to increase sales and profits while reducing expenses.
Having a third party assist with the financials allows the restaurant owner to focus on what they need, while maintaining accurate financial reporting.
Another important thing to remember for restaurant owners or any small business owner, is to maintain a clear distinction between the business’ finances and personal finances. This is common mistake that many business owners make but can be easily fixed with proper accounting and reporting.
At Opus Consulting Group, our experienced consultants work with several restaurants to provide financial management, accurate bookkeeping, budgets, and any other service that may be needed.