Despite spending hours in the office trying to sort out their finances, far too many owners do not understand why they are not making a profit. This is generally because they do not know exactly where their money is going. In this series, we will cover the most basic accounting principles – the ones that you need to know to get a better understanding of how to run a profitable restaurant.
There are several ways that operators can conduct their accounting. You can hire a full-time or part-time accountant, employ an accounting firm, use accounting software, or even just stick with basic spreadsheets. Many operators use combinations of these tools.
The most important thing is that is gets done in a manner that lets you understand what is happening in your business. If you decide to completely outsource every aspect of your accounting and do not look at your numbers, you may be missing opportunities to increase your profitability. For this reason, it is important to understand some basic accounting concepts.
This series will cover the following: