What restaurant internal controls should you keep as the owner of a small food business?
RECIPE FOR SUCCESS INGREDIENT CARD
Ingredient
Cook the Books
Question:
How to improve your business with restaurant internal controls?
Answer:
Good financial records are key to business success. By keeping accurate records of your business you will be able to make better business decisions and you will find it easier to raise funds and sell the business at some future date.
With the proper records e.g., bank accounts and statements, cash receipts & payments, petty cash book, sales & purchase journals, and financial statements you will be able to answer important questions such as these:
- How much cash do I have at the moment?
- How much do I owe?
- How much do people owe me?
- Can I afford to spend funds on new equipment?
- What is my net profit after taxes?
- What are my sales and expenses this month, quarter, or year?
- What were my sales and expenses last month, quarter, or year?
- How do my sales and expenses compare to last year?
- Are my sales and expenses normal for this type of business?
- Can I compare my results with industry averages?
Your accountant will advise you on what records you will be required to keep. These records will depend upon the legal structure of your business and the activity of the business.
Method
You are in business to make a profit and keeping correct financial records will enable you to measure, control, evaluate and forecast your profitability, your financial needs and your financial viability.
Money Matters!
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