For any restaurant, having sound accounting practices and financial controls in place is critical to success. Though the accounting department is rarely thought of as revenue-generating, it serves many vital functions. Here are some key reasons why accounting and financial controls matter for restaurants:
Cash Flow Management – The accounting team manages cash flow, which is like oxygen for restaurants. From billing and collections to payroll and vendor payments, cash flow management ensures funds are there to keep operations running.
Expense Oversight – The accounting department reviews and approves expenses across the restaurant to ensure they are justified and coded correctly. This prevents wasted spending.
Budgeting – Accountants create budgets and models to help plan for future growth and profitability goals. Budget variances are analyzed to understand performance.
Regulatory Compliance – From sales tax to wage and hour laws, accountants ensure compliance with all financial regulations to avoid penalties.
Reporting & Analysis – Financial reporting provides visibility into restaurant performance. Accountants analyze trends and variances to find improvement opportunities.
Fraud Prevention – Internal financial controls and segregation of duties reduce the risk of fraud, theft or financial mismanagement.
Technology Implementation – Accounting departments research and implement software to automate processes and improve analytics.
The bottom line is accounting provides the visibility and control needed to optimize financial performance. Implementing strong financial controls and leveraging financial insights can help restaurants minimize costs, maximize profits, and support growth long-term. The accounting team is a strategic asset for any restaurant’s success.
At Accross, we provide outsourced Accounting and Fractional CFO Services. Accounting from Operators to Operators.