How to Choose a Bookkeeper for Your Cafe or Restaurant
No judgment – it’s time to get your books in order! Even if your records are in a bit of a mess, reaching out for professional support is a powerful step forward. And you’re not alone – many business owners face similar challenges, especially in the fast-paced hospitality industry. Restaurant bookkeepers are used to handling all sorts of situations and want to help, not criticise. You’ll feel a sense of relief and achievement as you take control of your finances.
When selecting a bookkeeper for a busy restaurant, finding someone who understands the unique demands of the hospitality industry is essential. Here are key criteria to consider:
Basic Expectations of a Good Bookkeeper
1. Hospitality Experience Look for someone with prior experience in hospitality or working specifically with restaurants and cafes. A bookkeeper who understands the industry can better manage cash flow, inventory, and wage fluctuations – they know why things are sometimes a bit unusual! They should also be familiar with common financial challenges in hospitality, such as seasonal changes and irregular cash flow.
2. Knowledge of Local Tax and Compliance Tax compliance is critical, and your bookkeeper should be well-versed in local tax regulations, including Goods & Services Tax (GST) and Pay As You Go (PAYG), Sales Tax or VAT.
3. Experience with Relevant Software They should be familiar with the cloud-based accounting software commonly used in hospitality, such as Xero, MYOB, or QuickBooks. If your restaurant uses a specific POS system, can it integrate with your accounting software for seamless financial tracking?
4. Payroll Expertise Your bookkeeper should be able to handle the complexities of payroll for casual, part-time, hourly and full-time staff, especially with shift-based work and penalty rates. Plus, superannuation contributions and keeping track of leave entitlements.
5. Attention to Cash Flow Management Restaurants operate on slim profit margins, so cash flow management is vital. They should monitor your cash flow closely and give you insights and warnings to prevent shortfalls.
6. Clear Communication and Reporting Skills They should provide regular, clear reports that help you understand your financial position at a glance and be ready to explain complex financial data in simple terms.
7. Proactive Financial Advice They should be able to advise on cost-saving strategies, identify potential tax deductions, and suggest financial efficiencies – this is why their additional experience with hospitality clients is so important.
8. Reliability and Trustworthiness Handling finances and confidential data requires a high level of trust. Check references and ensure they have a good track record. Ask about their processes for ensuring accuracy and confidentiality with sensitive financial data.
9. Flexibility and Availability Your bookkeeper should be responsive and available during peak periods or emergencies. Accurate reports and information should be available weekly, which means you’ve set up a system to enable this – the onus is on you as much as the bookkeeper. They will advise on the services and integrations needed to make this happen.
10. Transparent Fees Inquire about their fee structure, but just asking ‘what’s your hourly rate’ is not useful in determining a person’s value – most bookkeepers work on a project or monthly basis, not hourly. Look for transparency in their pricing and ensure there are no hidden charges. The value of a good bookkeeper will far outweigh their fees!
The number one priority for working with a bookkeeper is knowing what their timeline is – when they will be doing the data entry and how that aligns with the reporting you need. If they’re not doing it weekly and in a timely manner and don’t have an easy process to get the data into your software so you can run the reports you need, then you’re in big, big trouble. Our team do the data entry daily, so they monitor the emails from suppliers and do a bank reconciliation every day, so you are never worried about how accurate your COGS are. We can do this if we have all the information we need.
Tim Niesler, accountant with FC Accounting and coach at Foodie Coaches.
Bookkeepers Can Offer a Wide Range of Services…
For restaurants looking for more full-service support, the next level goes beyond basic compliance and moves into strategic, ongoing financial management. You’ll be weighing up the cost of employing a bookkeeper in-house (likely to be expensive) or extending the work of your external bookkeeper. Here are some additional services an experienced bookkeeper can offer:
1. Weekly Financial Processing and Updates – Regular Transactions: Processing sales, expenses, and invoices weekly ensures you have up-to-date financial health insights. – Daily Reconciliations: Bookkeepers who reconcile daily or weekly can identify discrepancies early and reduce errors. – Cash Flow Monitoring: Real-time updates to your cash flow position help you anticipate shortages and more effectively manage payroll, suppliers, and unexpected costs.
2. Weekly or Fortnightly Meetings – Regular Check-Ins: A weekly or fortnightly meeting allows you to review financial performance, discuss upcoming expenses, and adjust budgets as necessary. – Forecasting and Budget Adjustments: Regular meetings give you a chance to refine budgets and forecasts based on recent performance and upcoming seasonal shifts.
3. Detailed Financial Reporting – Weekly and Monthly Reports: Bookkeepers can provide in-depth reports, such as profit and loss (P&L), balance sheets, and cash flow statements, with breakdowns specific to restaurant expenses like food costs, labour, and utilities. This will also be available for you to check at any time. – Performance Analysis by Menu Items: Some bookkeepers can track and analyse the performance of individual menu items or categories, helping with your menu engineering decisions. – KPIs and Benchmarks: They can highlight critical KPIs, such as labour cost percentage, food cost percentage, and net profit margin, and benchmark these against industry standards for continual improvement.
4. Cost Control and Efficiency Advice – Labour Cost Optimisation: Experienced bookkeepers can recommend scheduling adjustments, manage overtime, and help you track wage costs against sales to ensure you stay within budget. – Supplier Cost Analysis: Your bookkeeper can help you negotiate better rates or switch suppliers by tracking supplier costs and identifying any price increases. This could also be part of your ordering and inventory management system.
5. Cash Flow Forecasting and Budget Planning – Weekly Cash Flow Forecasting: This includes projecting inflows and outflows, helping you plan for future payments, payroll, and stock purchases without hitting cash crunches. – Seasonal Budget Adjustments: Regular forecasting also enables your business to prepare for seasonal trends, like holidays or quieter periods, keeping budgets realistic and adaptable. – Debt Management: Experienced bookkeepers can help manage debts, and identify early repayment or restructuring opportunities.
6. Inventory and Stock Management Support – Weekly Stock Reporting: Some bookkeepers use inventory tracking software to provide detailed reports on stock usage, waste, and inventory levels for tighter inventory control. This should be an extension of what the owner and the head chef are also using. – Cost of Goods Sold (COGS) Monitoring: They can calculate weekly COGS to ensure food costs align with targets, enabling real-time menu pricing or ingredient sourcing adjustments.
7. Payroll and Roster Management – Payroll Processing and Reporting: Beyond handling payroll, advanced bookkeepers can provide weekly reports on total labour cost, break it down by shifts, and monitor trends. – Compliance with Award Rates and Penalty Rates: They’ll ensure wages comply with award standards and penalties, which is essential for legal compliance and employee satisfaction.
8. Tax Planning and Strategic Advice – Proactive Tax Management: Rather than just ensuring compliance, a skilled bookkeeper can help you plan ahead to minimise tax liability through legitimate deductions and deferrals. – BAS Lodgement Assistance: In addition to preparing your Business Activity Statement (BAS), they can track credits, GST obligations, and other deductions, ensuring these are accounted for efficiently.
No judgment – it’s time to get your books in order! Even if your records are in a bit of a mess, reaching out for professional support is a powerful step forward. And you’re not alone – many business owners face similar challenges, especially in the fast-paced hospitality industry. Restaurant bookkeepers are used to handling all sorts of situations and want to help, not criticise. You’ll feel a sense of relief and achievement as you take control of your finances.
When selecting a bookkeeper for a busy restaurant, finding someone who understands the unique demands of the hospitality industry is essential. Here are key criteria to consider:
Basic Expectations of a Good Bookkeeper
1. Hospitality Experience
Look for someone with prior experience in hospitality or working specifically with restaurants and cafes. A bookkeeper who understands the industry can better manage cash flow, inventory, and wage fluctuations – they know why things are sometimes a bit unusual! They should also be familiar with common financial challenges in hospitality, such as seasonal changes and irregular cash flow.
2. Knowledge of Local Tax and Compliance
Tax compliance is critical, and your bookkeeper should be well-versed in local tax regulations, including Goods & Services Tax (GST) and Pay As You Go (PAYG), Sales Tax or VAT.
3. Experience with Relevant Software
They should be familiar with the cloud-based accounting software commonly used in hospitality, such as Xero, MYOB, or QuickBooks. If your restaurant uses a specific POS system, can it integrate with your accounting software for seamless financial tracking?
4. Payroll Expertise
Your bookkeeper should be able to handle the complexities of payroll for casual, part-time, hourly and full-time staff, especially with shift-based work and penalty rates. Plus, superannuation contributions and keeping track of leave entitlements.
5. Attention to Cash Flow Management
Restaurants operate on slim profit margins, so cash flow management is vital. They should monitor your cash flow closely and give you insights and warnings to prevent shortfalls.
6. Clear Communication and Reporting Skills
They should provide regular, clear reports that help you understand your financial position at a glance and be ready to explain complex financial data in simple terms.
7. Proactive Financial Advice
They should be able to advise on cost-saving strategies, identify potential tax deductions, and suggest financial efficiencies – this is why their additional experience with hospitality clients is so important.
8. Reliability and Trustworthiness
Handling finances and confidential data requires a high level of trust. Check references and ensure they have a good track record. Ask about their processes for ensuring accuracy and confidentiality with sensitive financial data.
9. Flexibility and Availability
Your bookkeeper should be responsive and available during peak periods or emergencies. Accurate reports and information should be available weekly, which means you’ve set up a system to enable this – the onus is on you as much as the bookkeeper. They will advise on the services and integrations needed to make this happen.
10. Transparent Fees
Inquire about their fee structure, but just asking ‘what’s your hourly rate’ is not useful in determining a person’s value – most bookkeepers work on a project or monthly basis, not hourly. Look for transparency in their pricing and ensure there are no hidden charges. The value of a good bookkeeper will far outweigh their fees!
Bookkeepers Can Offer a Wide Range of Services…
For restaurants looking for more full-service support, the next level goes beyond basic compliance and moves into strategic, ongoing financial management. You’ll be weighing up the cost of employing a bookkeeper in-house (likely to be expensive) or extending the work of your external bookkeeper. Here are some additional services an experienced bookkeeper can offer:
1. Weekly Financial Processing and Updates
– Regular Transactions: Processing sales, expenses, and invoices weekly ensures you have up-to-date financial health insights.
– Daily Reconciliations: Bookkeepers who reconcile daily or weekly can identify discrepancies early and reduce errors.
– Cash Flow Monitoring: Real-time updates to your cash flow position help you anticipate shortages and more effectively manage payroll, suppliers, and unexpected costs.
2. Weekly or Fortnightly Meetings
– Regular Check-Ins: A weekly or fortnightly meeting allows you to review financial performance, discuss upcoming expenses, and adjust budgets as necessary.
– Forecasting and Budget Adjustments: Regular meetings give you a chance to refine budgets and forecasts based on recent performance and upcoming seasonal shifts.
3. Detailed Financial Reporting
– Weekly and Monthly Reports: Bookkeepers can provide in-depth reports, such as profit and loss (P&L), balance sheets, and cash flow statements, with breakdowns specific to restaurant expenses like food costs, labour, and utilities. This will also be available for you to check at any time.
– Performance Analysis by Menu Items: Some bookkeepers can track and analyse the performance of individual menu items or categories, helping with your menu engineering decisions.
– KPIs and Benchmarks: They can highlight critical KPIs, such as labour cost percentage, food cost percentage, and net profit margin, and benchmark these against industry standards for continual improvement.
4. Cost Control and Efficiency Advice
– Labour Cost Optimisation: Experienced bookkeepers can recommend scheduling adjustments, manage overtime, and help you track wage costs against sales to ensure you stay within budget.
– Supplier Cost Analysis: Your bookkeeper can help you negotiate better rates or switch suppliers by tracking supplier costs and identifying any price increases. This could also be part of your ordering and inventory management system.
5. Cash Flow Forecasting and Budget Planning
– Weekly Cash Flow Forecasting: This includes projecting inflows and outflows, helping you plan for future payments, payroll, and stock purchases without hitting cash crunches.
– Seasonal Budget Adjustments: Regular forecasting also enables your business to prepare for seasonal trends, like holidays or quieter periods, keeping budgets realistic and adaptable.
– Debt Management: Experienced bookkeepers can help manage debts, and identify early repayment or restructuring opportunities.
6. Inventory and Stock Management Support
– Weekly Stock Reporting: Some bookkeepers use inventory tracking software to provide detailed reports on stock usage, waste, and inventory levels for tighter inventory control. This should be an extension of what the owner and the head chef are also using.
– Cost of Goods Sold (COGS) Monitoring: They can calculate weekly COGS to ensure food costs align with targets, enabling real-time menu pricing or ingredient sourcing adjustments.
7. Payroll and Roster Management
– Payroll Processing and Reporting: Beyond handling payroll, advanced bookkeepers can provide weekly reports on total labour cost, break it down by shifts, and monitor trends.
– Compliance with Award Rates and Penalty Rates: They’ll ensure wages comply with award standards and penalties, which is essential for legal compliance and employee satisfaction.
8. Tax Planning and Strategic Advice
– Proactive Tax Management: Rather than just ensuring compliance, a skilled bookkeeper can help you plan ahead to minimise tax liability through legitimate deductions and deferrals.
– BAS Lodgement Assistance: In addition to preparing your Business Activity Statement (BAS), they can track credits, GST obligations, and other deductions, ensuring these are accounted for efficiently.
Check the other useful blog posts on the Foodie Coaches website…
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