No matter whether it is a cafe, pub, hotel, or catering business – accounting services for restaurants are essential in helping manage and run these enterprises successfully. Hiring professional accounting services could save restaurants significant time and money.
Alexander Ene provides accounting services tailored specifically for small businesses, with an emphasis on scalability. We focus on credible tax compliance, growth strategy and ongoing support to our clientele.
As a restaurant owner, it is your duty to comply with HMRC’s stringent taxation requirements for taxation of restaurant businesses. These requirements cover an assortment of taxes and mandatory contributions such as VAT, national insurance (NI), staff NI contributions (NIF), and the Tronc Scheme contributions.
An experienced accounting services for restaurants in London will have the knowledge necessary to navigate these rules and ensure your restaurant complies with them all, helping you save on taxes by finding deductions and write-offs.
Accounting records are both legally mandated and essential to the success of a restaurant, providing insight into daily sales, profit/loss analysis, inventory counts and cash flow. When combined with digital tills, online booking systems and kitchen automation, the right accounting software will streamline processes for faster real time reporting. Be sure to select an accountant with strong industry credentials who can provide testimonials from local businesses; this will give you confidence in their skills and dedication to your success.
Restaurants typically have high staff costs and it’s essential that they remain under control. An accountant should assist by offering advice to reduce over staffing and excessive wage bills, keep staff costs aligned with sales patterns and monitor weekly break even sales levels (so as to know which levels allow the restaurant to make profit each week).
Experienced accountants for restaurants should possess an in-depth knowledge of your industry as well as all relevant regulatory requirements, have excellent communication skills and offer comprehensive accounting services.
Accounting services that integrate seamlessly with a good payroll software will make calculating wages, payroll taxes, and statutory payments such as PAYE and NIC faster and cheaper for your in-house team. They’ll save time and effort while saving both money and time by doing it faster.
3. Financial Statements
Financial statements provide a snapshot of your restaurant’s activities and financial status over a specified time. They typically consist of a balance sheet, income statement and cash flow statement to provide valuable insights into where money enters and exits your establishment, how it’s being utilized and its effect on revenue.
Each report offers its own advantages, with the income statement proving particularly insightful when measuring profit (revenue minus expenses). Cash flow statement and statement of changes in equity also play an essential role.
Notes to financial statements is an add-on that provides more details on the previous four reports. This may include information about accounting policies such as fair value and historical cost vs tax basis used by the company, estimation items disclosed as well as their effects, management’s responsibility in producing fair financial statements within an acceptable reporting framework and internal control over statements; etc.
4. Business Planning
Profit and loss (P&L) statements and balance sheets provide essential financial insights into any restaurant. While a P&L statement reveals profitability over a certain time frame, its counterpart provides an overview of all assets and liabilities at that specific moment in time.
Accurate accounting data is invaluable when making more informed business decisions, as it enables you to analyse the performance of your restaurant and identify what measures need to be taken in order to increase profits and improve profits.
Track the value of your inventory to reduce food waste, budget mismanagement, customer dissatisfaction and theft. With a restaurant POS system equipped with integrated accounting capabilities you can gain insights into which menu items are the most profitable as well as real-time reporting that provides you with a clear picture of how your business is faring – saving both time and money while guaranteeing its uptime.