A properly comprehensive restaurant accounting solution, like RASI’s, will manage your payroll as well. The financial document that summarizes these transactions is known as the restaurant cash flow statement. An understanding of this document is important not just for your accountant, but for owners and managers as well. Once you can interpret your cash flow statement, you’re in a position to more accurately project the future financial health of the restaurant. Now that you understand the basics of a restaurant’s cash flow statement, how can you properly manage your cash? First, you may want to work with our small business accounting services.
It takes a lot of time and effort to set up and manage your cash handling policy/procedures. Restaurant owners and managers may find that the process takes too much time away from other responsibilities, even after honing these cash management systems. Adjust outgoing payments to your vendors, suppliers, and payroll so your restaurant’s bank accounts aren’t taking a hit the same week. Poor inventory management can take a huge bite out of profits and company cash flow. Consider hiring temporary staff for busy seasons and investing in a few great salaried employees to work year-round.
Run Specials That Won’t Break the Bank
Expect the restaurant manager to pitch in on slow nights when you keep staff on the floor and in the kitchen to a minimum. For many businesses, the answer to this lies in managing restaurant finances – managing cash is a different skill than creative cooking and gracious hospitality. Many entrepreneurs aren’t trained in accounting, which makes managing restaurant finances a massive stumbling block.
Additionally, CCTV security cameras to monitor cash registers, cash drawers, and safes at all times can help address discrepancies and reconcile them. Typically at restaurants, each waitperson must keep track of the cash they collect throughout their shift. This money is counted with a manager before being deposited into a secure place like a drop safe.
Restaurant Cash-Handling Procedures and Best Practices
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An increase or decrease in cash represents the total increase/decrease of cash resulting directly from Operating, Investing, and Financing Activities. The ending cash balance, restaurant cash flow management however, showcases the total readily available cash from the current Balance Sheet. When there is an increase in liabilities, there is also an increase in cash flow.