To run a successful restaurant, there are a number of things you need to keep in mind. After everything you deal with during the day’s work, at the end of the day,you get down to the real business. That is, keeping a track of everything that happened.
Though you might be aiming to expand your business and really wanting to put in the hard work, record keeping is often ignored. What you might not realise is that this poor record keeping can cost you a great deal of time and money when doing taxes, and also create problems when making an insurance claim. So to help you out, here are a few helpful tips.
Business Records You Need To Save
- Income & Expenses:Gross receipts will help you keep track of all the income made by your business during a certain time period; this is all the money coming into your business. The records should include the amount of income and the source (where it came from). Expenses are also the costs of your business. You need to keep a record of your total expenses.
- Assets Of The Business: This record will include information on any assets such as the kitchen equipment or property owned by the company. For certain items, depreciation also needs to be calculated.
- Purchases: These are the items bought for the purpose of being sold. For a restaurant, this would include food items and beverages. It is important to keep a record of how much you are spending on each item.
Employment Records Are Important
When reviewing the organisation’s accounts, the employment related records will prove very useful. This way, the wages, super payments, costs of worker’s compensation and other such benefits will all be available.
Every business should keep employee information; such as names, addresses and emergency contacts. Information about employment dates is also necessary and the fringe benefits they receive. All of these come under the expenses of a business, and is thus vital to record keeping.
Storing & Organising
Storing and organising records is the most essential part of bookkeeping. There is no point incollecting data if it’s not organised.
You need to be prepared for the ATO or SRO audit. At the time when your restaurant’s accounts will be reviewed, all these documents will be necessary. It will be proof that information is being correctly reported.
When making an insurance claim, you will require the documents stating the exact loss that was incurred on the business. For these reasons, bookkeeping should be a major focus for restaurant owners. If you are however just starting your own restaurant business, you will need the right kind of insurance policy.
365insurance can help you find the best restaurant insurance coverage for your business. Our team of professionals will provide you with the options you need so you can compare policies and find one that suits you.