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What Should You Know Before Becoming a Restaurant Accountant?

What Should You Know Before Becoming a Restaurant Accountant?

The restaurant business is witnessing a very competitive scenario. People who wish to pursue a career as restaurant accountants must understand that restaurant and similar operations open every day and more often than not, have gruelling working hours. Besides checking and keeping a tab on restaurant revenue, it is important to focus on costs and payroll.

These activities and operations keep accountants on their toes and they are expected to take care of inventory, cash flow, and income expense statements. They have to follow a precise accounting system that makes documentation of business financial transactions perfectly managed.

 

Cash Flow Management:

For any business, cash has always been the bottom line and this holds especially true for a restaurant business. Restaurant accountants have to be vigilant about money going in and out of the business every day. They have to keep track of daily sales and revenue generation by keeping an accurate log. They must also handle inventory management. They have to be aware of inventory cost and use of daily food, avoiding excess costs and food.

 

Accounting Cycle:

Restaurant accountants need to follow an accurate method of document business transaction. The first step of the cycle when a buyer makes payment to buy a meal. This payment is immediately recorded as a transaction in an accounting journal. These transactions are then recorded in a general ledger. This ledger has to be reviewed regularly and financial reports prepared to find out more about the economic status of the enterprise.

 

Inventory:

Another major function that a restaurant accountant has to take care of is managing inventory. It includes supplies, food, and many other restaurant-related products that are required daily. A weekly check of inventory keeps the problem of surplus and having too little inventory issues at bay. It is possible to reduce inventory to a cost which could be used to compare with total sales that determine if the business is generating revenues.

 

Income Statement:

Accountants also need to prepare a statement of income. This statement shows the profits and losses of the restaurant over a short period. It is recorded in the form of expenses, earnings, and inventory. It needs to be prepared weekly.

Posted on March 10, 2019 by admin

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Allenby Accountants
35, Sweetcroft Lane
Uxbridge , London UB 10 9LE
Phone: 0208 914 8887
Fax: 208 914 8889
Email: info@allenbyaccountants.co.uk