5 Reasons to Hire an Accounting Firm for Your Restaurant
As of Spring 2018, the United States was home to more than 660,000 restaurants. Statistics indicate that about one-fourth of all restaurants in the United States fail in their first year of operation – 26.16 percent, to be exact.
Many entrepreneurs create restaurants because food is a consumer staple. Restaurants that serve good food will always generate money, at least if the business is run correctly.
However, every business should have good accounting practices. Unfortunately, accounting is difficult to understand and easy to mess up. You should unarguably hire an accounting firm to keep track of your business’ expenses, track performance, and identify trends, including countless other reasons.
Here are five of the most important reasons as to why you should hire an accounting firm to keep track of things for your restaurant.
You shouldn’t ever have to borrow money – an accounting firm can help with that
Restaurants, just like all businesses, should have a minimum amount of cash in the bank at all times. Restaurants generate a lot of revenue, so you should never have a problem with maintaining sufficient levels of cash.
An accounting firm will tally up all planned expenses and compare them to your actual expenses. After one or two months, your accountant can reliably tell you how much cash your business should have on hand at any time. The money you pay an accounting firm to keep track of this information on a monthly basis will likely be less than the amount of interest you’d pay on a bank loan used to keep your business afloat.
Accountants will always keep their eyes peeled for improprieties
As a business owner, you’ll probably want to help wait tables, clean dishes, plate dishes, cook food, be a cashier, and everything else you could think of. You simply won’t have enough time to keep a close eye on your restaurant’s books just to make sure that no funny business is going on.
When you delegate accounting and bookkeeping responsibilities to someone outside of your restaurant, employees won’t be able to work together behind your back to cover up funny business. Further, the accounting firm you choose will inform you of potential improprieties as soon as possible. As such, if something’s funny going on with your restaurant’s money, it won’t happen for long.
Believe it or not, small business owners are often taken advantage of in such situations for years upon years at a time. Losing a few hundred dollars once won’t sink your proverbial ship. However, losing that amount every week for tens or even hundreds of consecutive weeks will really make your business hurt.
Your accountant might have close ties to potential business partners
If you don’t know already, you should always select an accountant or an accounting firm that has an office not any longer than 10 to 15 minutes away from your restaurant. This will increase the likelihood that your accountant stops by to make sure inventory counts, receipts, and records are in good order.
Local accountants who have worked in the area your restaurant is in for a while should have connections to trusted food, linen, furnishing, and equipment vendors. Even if prices aren’t cheaper by dealing with your accountant-connected connection, the brownie points you accumulate by having the accountant as a shared contact will equal better business for your restaurant.
Seasonal food isn’t cheap – forecasts can save you tons of money
Many restaurants have seasonal specials because certain foods are cheaper, of higher quality, and in abundance. In most instances, however, seasonal specials like crab, salmon, and lobster will cost quite a bit. Rather than constantly facing the risk of having to throw away stock or not have enough for customers, good restaurant accountants will have real-world experience and forecasting software to go by.
Never make mistakes in meeting regulatory requirements
In the United States, businesses must comply with various regulations to do business. Entities that don’t comply, especially as far as taxes are concerned, can rack up fees from the IRS in the tens of thousands of dollars.
Save yourself a headache, reserve your focus for more important things, and hire an accountant to meet regulatory requirements related to everything from payroll to paid claims.