Running a restaurant can be challenging but still rewarding. To help your restaurant thrive, you should avoid some restaurant bookkeeping mistakes and know the importance of organised bookkeeping in order to help you make informed decisions.
Bookkeeping is important because it is critical to record your business’ financial transactions. If you keep it accurate, you can better track your cash flow, pay taxes and manage your finances. Messy books often lead to money loss – by the time you find discrepancies in your bank accounts and invoices, it will be hard to trace where your money went.
Bookkeeping may also help you sell your restaurant quicker by eliminating buyer trust issues caused by disorganised books. You would need to show correct figures through complete documents and correctly coded tax returns. The buyer will be confident if you have accurate books that report correct wages and profit, putting you in a stronger position with negotiations.
As the owner of a restaurant you should know the tax system well enough to avoid. Using restaurant bookkeeping services can help you handle your tax issues and keep your business compliant without the headache that comes with it.
Make sure you have the correct processes when cutting off budgets. If you decide to cut corners, don’t slip into incorrect processes which can hurt your business in the future, like paying staff under the table. If your books do not accurately show your staff wages, you may encounter problems with your investors or buyers.
You should also separate your business from your personal accounts to see your business’ financial status and speed up the lodging of your BAS and filing of tax returns. If you keep them separate right from the start, you will save plenty of time, money and headache cleaning up your books in the long run.
Don’t forget to claim GST credits for your bank merchant fees and credit card transactions. Check your BAS and make sure the bank fees are coded correctly. You should also claim GST credits for your leased restaurant equipment and learn how to categorise rental equipment properly by consulting a qualified restaurant bookkeeper.
Your BAS should have the correct details about your commercial property – if you have a rental agreement, prepaid property statement or a refundable bond. It may be a good idea to consult a firm that offers hospitality bookkeeping services to help you.
As you look for different ways to grow and improve your business, seeking professional advice from a business accountant and consultant could prove to be an important and helpful decision.
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