These Warning Signs Could Mean Your Restaurant Business Is Overdue For A Financial Check-Up

Any good chef or food service provider knows that a menu item is only as good as the ingredients used. And even the best recipe can be ruined with a few bad ingredients. Likewise, even the best foodservice business can become lackluster over time because of a few bad ingredients. Identifying these bad habits within your business could indicate it’s time to rethink your accounting strategy and shift more responsibility into the hands of an outsourced accountant.

You Are Working All The Time

It is not uncommon for many restaurant owners to be working while others are sleeping, but when your mornings, evenings, and weekends are being overrun by the business, something has to change. Granted, the root problem for your overwhelming pace could be any number of causes, but outsourcing your bookkeeping could be the first logical step to clear away the clutter of tasks. Creating some margin in your life will be necessary to reclaim your free time. Instead of filling your nights and weekends by organizing expenses and tracking down invoices, an outsourced approach will win back your downtime and prioritize your efforts.

You Are Falling Behind

Staying on top of sales, labor costs, COGS, and cash flow is not for the faint of heart. It is not surprising that many restaurants and foodservice businesses are always playing financial catch-up. However, falling behind in basic accounting practices can become detrimental to your business. Aside from the nagging guilt of always falling behind, you also lack a clear picture of how your company is doing and what opportunities for higher profits are in front of you. A pile of invoices and unread emails from vendors is the indicator that it’s time to rethink your accounting strategy

You Are Taking Time Away From Your Customers

Do you ever think back to why you started your business in the first place? Do you remember the first day you flipped over the open sign and welcomed your first customer? Chances are, the nostalgic idealism has been tempered over time by the reality of back-office administration, but talking with your loyal customers is still the ongoing priority. Of all the responsibilities that pull you away from actual customers, your bookkeeping should not be one. This is one responsibility that doesn’t have to be on your plate and shouldn’t be keeping you from serving others. If you find yourself being pulled further and further from your customers to catch up on basic bookkeeping tasks, it is time to rethink your approach. By outsourcing your accounting, you can carve out more time for the areas that require improvements and less time with the financial task.

Following The Financial Recipe

Just like a great recipe, financial health is a holistic and multi-faceted discipline. A single change will rarely bring immediate improvement. However, by using only good ingredients and following the proper financial recipe, financial health and business longevity can be a reality.