Restaurant businesses need to make money to survive, and in order to make money, restaurant owners, operators and managers need to know basic restaurant accounting systems to control cash-flow, reduce losses and maximize their profits. Learn more about basic restaurant accounting information in this article.
A restaurant’s profit and loss statement, or P&L, is much like an income statement for the restaurant. This document is an essential report used to summarize income, expenses and inventory, illustrating a restaurant’s total profits and losses over a period of time.
Cost of Good Sold, or COGS, represents the expense the restaurant incurs for the inventory used in a given time period. Managing COGS is essential for minimizing losses and making a profit in any restaurant.
Restaurant owners owe taxes on many aspects of their operation, including property, payroll and tips. This article outlines owners’ obligations for the major types of restaurant taxes.
Your annual budget keeps you aware of the expenses and income your operation sees on a monthly basis. Create an annual budget to maintain your finances and plan for the future.
Food cost is usually the biggest expense in the restaurant. Without controls in place, this expense can get out of control and damage your profitability. In this article, learn some common ways that restaurants control their food costs.
All restaurants require a system of collecting payment, and many rely on a Point of Sale (POS) cash register to do this. Instilling cash handling practices can help keep your business functioning smoothly.