There are few businesses more stressful and difficult than running a restaurant. Those intrepid entrepreneurs who get into the field most often do it for the passion they have for food. As anybody who’s ever seen an episode of a Gordon Ramsay show can tell, it’s not for the faint of heart. Running a restaurant requires careful inventory management and record-keeping. Bookkeeping for food service provides benefits like what it does for other companies. Particularly with restaurants, it can make the difference between bankruptcy and Michelin stars.
The Hazards of the Restaurant Industry
Running a successful restaurant can be a source of immense professional satisfaction. There’s nothing like the feeling of providing an excellent meal to somebody.
That whirlwind of positive emotion doesn’t pay the bills, though. Over 60% of all new restaurants fail within their first year of operation. About 80% will not make it past four years.
There are many reasons for this. It’s why franchise eateries proliferate, even though they don’t always offer top quality. It’s because they have a successful business model.
A critical part of that model is their array of specific bookkeeping practices.
Benefits of Bookkeeping for Food Service
Take a look at this list of 35 reasons why restaurants fail. You’ll notice that the vast majority of them have to do with the quality of the bookkeeping.
Everything matters, from the cost of goods sold, to analysis of the profitability of individual menu items. It all has an impact on the ultimate success of your establishment.
If your restaurant isn’t currently using any bookkeeping at all, it’s important to start now while you still have time. Letting unnoticed costs add up will bring the roof crashing down on your finances before long.
The best way to go is to work with an accountant that specializes in the restaurant industry. Not every business that’s in dire straits can afford that kind of service, though.
If you’re in a tough spot, a professional and comprehensive service like what we provide at SyncLedgers can tide you over. Contact us today to discuss the possibilities of bookkeeping for food service businesses like yours!