Payroll and Bookkeeping for Restaurants: What You Need to Know

31 Aug Payroll and Bookkeeping for Restaurants: What You Need to Know

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Bookkeeping & Accounting

by Becky Brown  •  0 Comments

payroll-and-bookkeeping-for-restaurants.jpgAs a restaurant owner, you are used to working under pressure. Your customers expect to be served great food without having a long wait. In addition, they want quality service from the people who work in your restaurant. You know how to make sure all of the moving parts in your restaurant are working together to provide your patrons with a wonderful experience. However, if the kitchen gets behind on filling orders or the wait staff provides poor service, things can get out of hand quickly. The same is true with the payroll and bookkeeping elements of running a restaurant. It is easy to get very far behind if you do not consistently complete those duties.

  • The high volume of transactions makes it essential to stay on top of your bookkeeping duties.

Restaurants often have a high number of transactions on a daily basis. You make your profit off of selling a large volume of food. The high volume of transactions makes the bookkeeping responsibilities more cumbersome than other industries that make big profit off of fewer sales. If you neglect the bookkeeping for your restaurant you could miss important information that comes from looking over the details of your financial statements. In addition, accurate records will make tax time much easier because you will not be searching through your bank statements, receipts, and invoices retroactively to find all of the pertinent financial information.    

  • Extended hours require a large number of employees on your payroll.

Restaurants do not typically have the same operating hours as other types of businesses. A restaurant that serves all three meals likely opens before and closes after most other businesses. These extended hours mean that you need a large pool of employees to cover all of the shifts. And, every one of your employees expects to get paid what they are owed on time. If you hope to keep high quality employees then you must be accurate and efficient with your payroll duties.

  • Professional help can streamline the bookkeeping and payroll processes.

Taking care of all of the bookkeeping and payroll responsibilities on your own may not be ideal as your restaurant continues to grow. The volume of transactions and employees will continue to increase as you expand your clientele and reputation as a quality restaurant. The other demands of running a restaurant will also increase as it grows. There will likely come a point when you must hand off some of your responsibilities in order to focus on growth and continued success.

If you are already to the point where you need help, a professional accountant or accounting firm can help you streamline your bookkeeping and payroll processes. You can work with an accounting firm to develop a plan that is tailored to the needs of your restaurant. Once the plan is in place, the time you spend on bookkeeping and payroll will be greatly reduced. Your time and mind will be freed up to focus on other areas of running and growing your business.    

 

Topics: Bookkeeping & Accounting