Accounting Expertise For Restaurant Owners
From a limited labor pool to rising costs of supplies, space, and utilities, restaurant owners face numerous challenges every day. Hiring accountants for small business like Haworth & Company helps make managing the day-to-day and long-term success of Minneapolis/St. Paul restaurants simpler for many owners. We understand the unique challenges of running a restaurant and help our clients maximize their success.
Restaurant Accounting Challenges
Working with accountants for small business like Haworth & Company allows our clients to get a better handle on the key challenges of restaurant financial management:
- Cost of Goods Sold (COGS): Determining and managing COGS is crucial for restaurant owners. From inventory management to separately tracking the cost of food and beverage sales, we help our clients accurately calculate COGS. Learn more about COGS from the Investopedia guide on COGS.
- Labor Costs: Managing labor costs is another significant accounting concern for restaurant owners. This includes tracking and calculating wages, overtime, tips, and benefits for all employees. Additionally, restaurant owners need to comply with labor laws and regulations, such as minimum wage requirements and employee classification.
- Revenue Recognition: Restaurants may have different revenue streams, including dine-in, takeout, delivery, catering, and gift card sales. Properly recognizing and recording revenue from these different sources is essential to accurately report and review financial performance.
- Depreciation, Amortization, and Leasing: Restaurant equipment can represent a significant investment for restaurant owners. When purchased outright, knowing how to best manage amortization and depreciation can have a significant impact on the business. Other equipment may be leased, which adds an additional layer of complication regarding operating vs. capital leases. We help our clients understand their options so they can make the smartest choice.
Specialized Accounting For Restaurants
In addition to the standard accounting concerns of most businesses, accountants for small business understand that restaurant owners have unique financial needs that require specialized services. At Haworth & Company, we provide tailored accounting services specifically for restaurants, assisting them with the following:
- Accounting: Accurate and timely financial statements are crucial for restaurants to understand their performance and make informed business decisions. We help restaurants build and maintain robust accounting systems and processes so they always know where they stand.
- Tax: Restaurant owners must navigate complex sales tax regulations and ensure compliance with applicable state and local tax laws. Properly collecting, recording, and remitting sales taxes is crucial to avoid penalties and legal issues.
- Payroll: Restaurants face many staffing challenges and employ large numbers of part-time and tipped wage earners. Ensuring the accuracy and timeliness of payroll can be a burden that owners just don’t have the time for. We take that stress off your shoulders and empower your team with tools like Employer on the Go and HR on Demand.
- Consulting: Whether you need advice on growing, are considering expanding to add another location, or need clarification on how a new state regulation may affect you, our Business Advisors are ready to help you.
- Succession Planning: We help restaurant owners develop succession plans to pass their business on, identifying pitfalls and opportunities to help future generations.
