Planning to start a restaurant business? Wondering what it takes to succeed in the food industry? Restaurant entrepreneurs in Orange County encounter various issues and challenges in running their companies. One of the most difficult tasks is managing the inflow and outflow of money. The most successful restaurant owners are those who hire specialist business accountants to handle their finances.
What is the Secret to a Successful Restaurant Business?
Dave Heisteine is a San Diego-based CPA offering specialized booking services for local restaurants
A restaurant is a very challenging type of business to operate. In Orange County, a lot of restaurant businesses do not last more than a year after opening. It is rare to find food businesses that start strong and succeed. The usual reason why these companies fail is the mismanagement of their finances.
Generally, those who start restaurant businesses are food people. These are people who love to cook and enjoy making delicious dishes for others. But running a business involves more than producing quality products and keeping customers satisfied. Properly managing finances is necessary to keep a business standing.
Running a restaurant entails managing finances more tightly compared to other kinds of enterprises. This is because the accounts that restaurants have are exceedingly more complicated than those of other types of companies. Most of the restaurant owners who fail in their business are those who fall short in tightly keeping track of their expenses and effectively balancing their income.
For any business to succeed, an entrepreneur must hire an accountant who specializes in the type of industry that his or her company belongs to. Specialist accounting services exist so that specific types of businesses can have their finances properly recorded and managed by an expert. If you are planning to open your own food establishment, you need to hire a trusted specialist restaurant accountant to handle the accounting side of your company.
Specialist Restaurant Accountant Helps a Small Food Business Succeed
Profitwise Accounting helps many small businesses in Orange County by providing specialist accounting services. With the assistance they provide, entrepreneurs can focus on managing their enterprises while the accountants take care of keeping the company’s finances in order. They have specialist accountants that cater to restaurant businesses. Owners of food enterprises can be sure that their income and expenses are well balanced when they hire a professional to handle their accounting.
Flame Broiler, a restaurant in California, is one of Profitwise’s satisfied clients.
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Specialist Restaurant Accountant Helps a Food Business in California
Flame Broiler is a franchised restaurant business in California. It is a quick-serve type of food establishment that offers lunch and dinner meals, such as chicken and rice bowls. The owner of the enterprise recently hired a specialist accountant from Profitwise to provide them with accounting services that are specifically structured for restaurants.
Setting Up a Bookkeeping Method
When Profitwise first worked with Flame Broiler, their accountants found that the client did not have any accounting system set up. It was very difficult to track how much the restaurant was earning versus its expenses. When the company’s financial status was assessed, the specialists from Profitwise found that the business was spending a lot of money on leasehold improvements and architects. The restaurant was also losing a great deal of money through credit card payments.
The first action that the specialist restaurant accountants performed for the client was that they tracked down all of their expenses. A bookkeeping method needed to be set up in order to prepare accurate tax returns. However, it was challenging to do this because there was no accounting system in place when the company started. It was extremely difficult to track down all the income and expenses from the day the business opened. The client only used an Excel spreadsheet to account for all the money they spent and earned, but this method is not the right way to perform double-entry accounting and bookkeeping. It is not ideal to use this crude process when preparing an accurate tax return.
To solve this dilemma, the specialist accountants took the last 18 months of data from the client. These included all the restaurant’s transactions, historical bank statements, and credit cards. The team had to recreate the books for the company’s last year and a half. When all accounts were placed in order, the accountants were able to create an accurate tax return for the restaurant. Profitwise continues to update the client by providing the business with monthly bookkeeping using the newly set up accounting system.
Organize Data through QuickBooks Online
QuickBooks Online is efficient accounting software for small businesses. Profitwise introduced this tool to Frame Broiler, in order to organize their finances better. The client provides the specialist accountants with the needed data, such as bank records, historical transactions, and payroll. When all the necessary data is complete, Profitwise performs all the accounting services for the client.
The owner uses QuickBooks to view the restaurant’s financial reports. The software allows the client to look up the profit-loss balance sheet, general ledger, and other financial information about the business. QuickBooks is a dependable accounting system that helps entrepreneurs be aware of whether their business is making money or not.
Hire a Specialist Accountant to Do the Accounting for Your Business
Owners of restaurant businesses in Orange County should focus on what they do best, and that is managing their enterprise and producing quality food. The accounting aspect of the company should be handled by a professional. Food entrepreneurs should hire not just any accountant. They should trust only an experienced and skilled accountant who specializes in restaurants. A competent specialist restaurant accountant can be trusted to properly track the income and expenses of a food business, tightly balance their finances, and prepare accurate tax returns every year.
The outsourced accountants at Profitwise are well-known to small businesses in California for providing clients with quality services by organizing and summarizing business transactions. Their experts interpret the information that is gathered from their clients, and they provide the business owners with comprehensive insight as to how their company is doing. Profitwise’s specialists regularly present their clients with reports and other types of data that are needed to successfully run a small business in Orange County.
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