The road to opening your first restaurant can be a long and arduous one.
From gaining planning permission to hiring contractors, meeting important deadlines and of course gaining vital sales licenses. It is completely understandable therefore that many restaurant owner are burnt out before even reaching the grand opening day.
But the important thing is that you have done it. Congratulations. Now the really hard work begins…
The first year of restaurant ownership can be filled with challenges, obstacles and dramas. Dealing with customer reactions, staff shortages and even the dreaded dishwasher breaking down; there are sure to be many twists and turns along the way. But what about the financial side of running a restaurant in the first year? Here are a couple of financial issues that you may face in your first year of restaurant ownership.
Firstly, unexpected costs.
It is a well known fact that operational costs in the first year of running a restaurant are higher than any other year of trading (out with refitting etc).From broken glasses to stolen cutlery (it happens), you need to make sure that you have enough finances in reserve to simply cope with replenishing your stock of cutlery. It may seem daft but the amount of restaurants that have overlooked this and found out six months after opening that they don’t have enough cutlery for all the tables is astounding. And this is us just talking about forks. Cash flow is king and is vital for survival. While most restaurants will play it safe by ensuring they have cash flow to cover food stock etc, few remember to keep extra aside for other vital assets that can and do go missing.
And secondly, financial reporting and keeping track of your books.
The restaurant business is full of instability and erratic financial costs. Too often, restaurant owners try to cut costs by tackling certain things themselves.
Bookkeeping errors can lead to large outgoings in cash flow, late payments and expensive tax charges. What may seem like a simple bookkeeping error could in actual fact cause the business to fall deep into the red. And more concerning is that if you are a restaurant owner doing your own books, you may not even know you are making these errors.
Whether it’s getting paid by your customers on time, completing your VAT returns, processing payroll or submitting your annual accounts and tax returns, the demands on businesses can seem endless. And it’s almost certainly not why you got into business in the first place. It is, however, exactly why we got into business. We do the things you avoid because where your business is concerned, you do the real work, we do the paperwork.
Having a good quality bookkeeper can bring many invaluable benefits to your business.
We can be as integrated with your business as you want us to be. To find out more and to discuss how we can work to help your business, call us today.