Accurate accounting is at the foundation of small business success.  Conversely, the mismanagement of finances is the number one reason small businesses fail.  In fact, 32% of them fold due to poor management of financial activities.  Having a trustworthy and highly qualified bookkeeper to delegate financial responsibilities to will give you the best chance for success.  The management of restaurant finances is a full time job and is a worth the resources needed to make it function correctly.  The smallest error or lack of efficiency can cost restaurant owners dearly.  Advancements in technology have made managing funds easier but have brought about new security risks.  Cash flow is extremely important for small businesses to grow and operate.  Money matters affect all aspects of the restaurant business so we’ve developed a list of products, checks and balances necessary to financial health.

Industry Specific Software

Accounting software comes in many forms these days and it’s important that you choose a platform that is specifically designed for the restaurant industry.  The restaurant industry is a unique business and requires technology that accounts for the nuances involved in its finances.  Detailed research should be done to ensure you’re getting a product that fits your business model.  Once you’ve purchased the software you want to ensure you and your accountant have a firm grasp on all functions before utilizing the tool for everyday financial tasks.

Cloud-based Technology

The security of your financial information is of the utmost importance and cloud storage has made it much easier to access information and curbed the risk of losing important records and documents.  Since the cloud offers the ability to access your finances from anywhere on the planet and provides unlimited storage space it has become an important tool for the restaurant business.  This trend is going to continue to grow and has already become much more affordable.  At this point it just makes financial sense to utilize cloud technology.

Segmented Payroll

Too many restaurants lump together all employees into one group when analyzing payroll costs.  In order to identify where your company is making and losing money you need to segment your labor costs according to position and job responsibilities.  Going about payroll in a detailed manor will provide insights into your expenses that otherwise would not be exposed.  Staffing is a major cost for most restaurants and knowing where to dedicate your resources will save you money on labor costs.

Inventory Management

Properly managed inventory that includes constant evaluations and weekly adjustments will have a significant impact on your bottom line.  It will help to prevent waste as well as identify and discourage theft.  Staying on top of your inventory will maximize profit margins and allow your company to take more risks in order to grow.  This could include purchasing in bulk for special promotions and obtaining everyday items when they are least expensive.

Cost Analysis

There are many different aspects involved in restaurant finances and being able to pinpoint deficiencies and money makers will have an impact on your longevity and profitability.  Thorough dives into the most important performance indicators should be done on a regular bases to limit the effects failed experiments or potential errors.  Knowing where all of your money is coming from and going to will allow your business to operate with maximum efficiency.

Funding

Having functional cash flow and money to make improvements is necessary for restaurants to grow and prosper.  A restaurant cash advance can offer your business a significant amount of capital if you have a strong sales history. Repayment is a fixed percentage of daily sales, so when you have slower days, you pay less. Those with credit ratings too low to get a traditional bank loan can still qualify for a merchant cash advance. Quikstone Capital Solutions specializes in helping small businesses thrive in an ever changing business world. For more information simply click apply now.

Like more information on how to grow your restaurant business?

Download our Restaurant Investment Guide below.