GAIN MORE UNDERSTANDING OF YOUR RESTAURANT’S FINANCES
RESTAURANT ACCOUNTING SERVICES
The restaurant industry is steadily increasing. People are eating out more, which is great for your business. With increased sales comes more accounting issues. More transactions and expenses to manage. And a lot of times, it is the restaurant owner doing all of the accounting work. Instead, consider putting your focus solely on your business and not the books.
Our professionals manage your bookkeeping from start to finish. We collect transactional information on food costs, labor, and sales and present them in easy to read financial statements. Not only that, but we keep up with any major purchases you may have and the associated depreciation expense. Ultimately, making filing your tax return easier and more efficient.
Our team will accurately file your business Federal and applicable State returns. Information reported on your return will reflect all of your restaurant’s transactions for the year. We also know of special tax rules that apply to restaurants, like the IRS’s Safe Harbor rules. Our tax preparers ensure you are taking every possible deduction applicable to you.
Because of the risk associated with starting and running a restaurant, business owners need help in projecting sales and expenses. You will be assigned a part-time CFO who will provide reports of sales projections and expected expenses. Our team will ensure you have the financial information you need to plan and prepare for changes in your sales cycle.
Why Use Restaurant Accounting?
There are a lot of moving parts when it comes to running a restaurant. You have customers, employees, partners, inventory, expensive assets, dozens of daily costs and more. All of which needs to be tracked and accounted for. There’s no surprise as to why so many restaurants fail. Here are what the stats are telling us:
1. Over 50% of restaurants fail in the first year
2. Most restaurants have a profit margin of 3% – 5%.
3. A major reason why restaurants fail is due to the lack of cash reserves
Owning a restaurant is difficult. In general, restaurants have a low margin. Meaning restaurant owners have little room to manage their sales and expenses. Restaurant-specific accounting is not only necessary but is vital for success in the restaurant industry. Timely restaurant accounting is gold for restaurant owners. With the fast pace of the restaurant industry, you need up to date, financial records. Let restaurant accounting be your solution.
Benefits of Restaurant Accounting
By putting your restaurant’s accounting first, you will always have the financial data you need to keep your business thriving. Specifically, you’ll be able to:
- Create and maintain better budgets
- Forecast future food sales and food costs
- Monitor financial health
- Make smarter big purchase decisions
WHY LYFE ACCOUNTING FOR RESTAURANT ACCOUNTING?
Our team has direct experience with doing restaurant accounting. You are assigned a designated accountant who will work closely with to help you achieve your goals. Rest assured you are in very capable hands with someone who knows your industry.
Our team consists of Certified Public Accountants, Registered Investment Advisors, Enrolled Agents, and Tax Preparers. We have the qualifications and experience to service all of your restaurant accounting needs.
Accounting in every industry is different. Which is why working with our team will be a pleasure for you. We have specific experience working with different restaurants.
Restaurant Accounting Success Factors
As a restaurant owner, you face many challenges on a daily basis. Don’t let your accounting be one of them. Here are some ways restaurant accounting can make operating a restaurant easier:
1. Up-to-date Information. With accounting as a tool, you’ll have access to your daily sales, food costs, profit margins and more.
2. Better Cash Flow Management. A major reason restaurants fail is due to lack of cash flow management. A proper accounting system can reduce a large part of this risk by providing you the information you need to prevent cash deficits.
3. Improved Decision Making. There are many different facets to running a restaurant. From managing food costs, hiring employees, furniture buying, marketing and so much more. Restaurant accounting will help you make better, more informed decisions.
OUR METHODS TO RESTAURANT ACCOUNTING
We take the time to catch up your books to the present month.
We set up your chart of accounts so that reviewing your financial statements is easy and tax return filing is a breeze.
We gather data. Whether you use Paypal or a credit card processor, we incorporate that information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
To ensure accuracy on your financial statements and ultimately your tax return, we reconcile your accounts.
We prepare your financial statements. The financial statements include income statements and balance sheets.
We help you use your reports and KPIs to make informed, profitable decisions.
Take the Necessary Step To Grow Your Restaurant
All restaurants need accounting. In order to grow and prosper, you must know your numbers.
Your numbers are the foundation for restaurant decision making. And it’s your decisions that will either make or break you.
The key is having the right information at the right time. In general, the restaurant industry has narrow margins. So one miscalculated decision could cost you thousands, or worse, your business.
Don’t be a statistic. Enlist the professional help of a CPA at LYFE Accounting. We not only help you with your business, but we also help you stay in business.
“I had an awesome experience at LYFE Accounting. My accountant was really knowledgeable & professional. She got me the maximum refund possible…I would recommend LYFE Accounting to any & everyone.”
– P. Griffin