Restaurant Accounting: Serving a Hot Dish That Won't go Cold

One lesson the COVID-19 pandemic taught all of us is that any product- or service-based business must pay attention to their current and potential customers, and anticipate their needs before they do.

A restaurant is one of these types of businesses. Although many restaurants went to great lengths to up their takeout strategy by creating curbside “no touch” delivery and created new kinds of outdoor seating, they most likely survived. Others weren’t so fortunate. According to the National Library of Medicine, 15.2% of a sample of restaurants in 2020 closed, with the majority of closures occurring in metropolitan areas.

If your favorite Thai restaurant or local diner survived, they did it through innovations similar to the ones above, but it’s our assumption that they also worked with a company such as Certum Solutions to ensure their accounting and bookkeeping was solid and provided the kind of information they needed to make more-informed business decisions around forecasting, cash flow, and payroll.

Now that the pandemic is behind us, what does your restaurant need in terms of accounting and bookkeeping? Here’s a short list for your consideration.

An integrated POS System

Your food may be tasty, but unless you can complete a sale and get a customer’s payment your gravy may have lumps. When we begin working with a restaurant customer, one of the first things we do is assess their Point of Sale (POS) system. An updated, modern POS system must check out your customers, of course, but also must address inventory and provide reporting.

As a leading provider of restaurant technology, Certum Solutions understands seamless integration with platforms such as Toast, one of the more popular platforms. We work with you and your team to ensure Toast and other platforms give you the kind of information you need to operate efficiently.

Accurate Payroll is Key to Efficiency

There are many mistakes made when it comes to payroll for restaurants, including misclassification of employees, pooling tips, and not addressing other taxable compensation such as vacation pay, overtime pay, and sick pay. Believe it or not, some restaurants are behind the times when it comes to payroll in terms of dated systems that do not integrate with their accounting software.

Our goal is to simplify payroll processing, but also ensure compliance with labor laws and regulations through Certum’s payroll management services tailored specifically for the restaurant industry.

Accounting for Inventory

One of our favorite shows is “The Bear,” where the plot revolves around the recreation of a down-on-its luck restaurant to something really special, but in more than one episode, the chef and his team figure out they don’t have the right kind of spices, yeast, or an assortment of other things. Although there is a very important inventory plot twist when it comes to canned tomatoes, the point is that the restaurant had no automated way to maintain inventory.

It's time to change all that, even in the best restaurants. With our inventory management solutions, we will design an integrated system with your accounting software to track inventory levels, manage stock replenishment, and reduce food costs.

Hot off the Presses

No, we’re not talking about the kind of press for paninis or specialty sandwiches; we’re talking about accurate reporting.

The most important reporting tools include:

• An accurate profit & loss (P&L) statement—or income statement—and balance sheet are the two most important reporting tools. Your P&L shows your restaurant’s performance at any specific period of time, while the balance sheet reports on the financial position of your business.

• A cash flow statement provides the kind of operational information you need and is put together with the following: Beginning balance in cash + net changes in operating, investing, and financing activities = ending cash balance. In addition to operations, cash flow statements help with investments and financing.

Reporting also helps a restaurant manage its sales and use tax, provides useful information to investors, enables possible additional financing, and is a good indicator of the business’ health.

What’s on Your Menu?

If all of this sounds complicated, it is—and that’s why Certum Solutions can manage your reporting for you. The key, again, is to help you make better business decisions.

Contact us today. We’re great listeners and abide by our motto: Scale Gracefully.