Want to put up a successful restaurant business? Owners of food businesses in San Diego face various issues and challenges in running their enterprise. One of those is managing the inflow and outflow of money. The most successful restaurant owners are those who hire specialist business accountants to handle their finances. Profitwise Accounting offers specialist accounting services for restaurant businesses in San Diego.
What Makes a Restaurant Business Successful?
A lot of people who open restaurants in San Diego realize that this kind of business is very challenging to operate. In fact, it’s common for enterprises in this kind of industry not to last more than a year. It’s very rare for restaurants to start strong and succeed in the business. The usual reason is failure to manage finances.
Most entrepreneurs that start restaurants are food people. They love to cook, and they enjoy providing people with praiseworthy dishes. But running a business entails more than producing quality product and keeping customers happy. A successful restaurant company involves managing finances more tightly compared to other types of companies. The accounts that restaurants have are exceedingly more complicated than the accounts of other kinds of businesses. Most of the restaurant owners that fail in their business are those that fall short in tightly keeping track of their expenses and effectively balance their income.
For a business to be successful, an accountant that specializes with their kind of industry has to be hired. Specialist accounting services ensure that finances and taxes are properly recorded and managed. If you plan to open your own restaurant, you need to have a trusted and well-experienced professional handle the accounting side of your business.
Profitwise Accounting Helps Restaurants in San Diego Succeed
Profitwise offers specialist accounting services to various businesses in San Diego, including restaurants. With the work we do, business owners can focus on running their business while we take care of keeping their finances in order. Restaurant owners can be sure that their income and expenses are well balanced if they have a professional handle their accounting. The accountant they should hire must be highly knowledgeable and well experienced in handling restaurant businesses.
The owner of Flame Broiler is one of our clients in San Diego.
Case Study of a Client in San Diego: Flame Broiler
Flame Broiler is a franchised business in San Diego. It’s a quick serve kind of restaurant that offers lunch and dinner meals, like chicken and rice bowls. Their customers are mainly local residents, and occasionally they have tourists as well. It was very recently that they hired us at Profitwise to provide them with specialist accounting services.
Initial Action – Cleanup Project
The client did not have an accounting system setup for the restaurant. Consequently, they could not properly track how much they were earning versus their expenses. When we assessed their financial status, we saw that they were spending a lot of money on lease hold improvements and architects. They were also losing a lot of money through credit card payments.
The first action we needed to do was to track all of their expenses. We needed to setup a bookkeeping method, so that we could complete accurate tax returns. But it was very challenging to do this because there was no accounting system in place when the business started, and it was difficult to track down all the income and expenses from the day they began. The client tried to use an Excel spreadsheet to account for all the money they spent and earned, but this process was not the proper way to perform double entry accounting and bookkeeping. This crude process is not ideal to use when preparing a tax return.
To solve this issue, we took the last 18 months of data from the client, which included all his transactions, historical bank statements, credit cards, etc. We had to recreate the books for the restaurant’s last year and a half. When all accounts were properly in place, we were able to create an accurate tax return for the client. We continued with the accounting system we setup, and we kept the client updated by providing monthly bookkeeping with them.
Organizing Data for Client
We introduced the client to QuickBooks Online, which is an efficient accounting software for small businesses. The client provides us with the needed data, which includes bank transactions, historical transactions, and payroll. With the complete data available, we perform all accounting services for him. The client then uses QuickBooks to view the restaurant’s financial reports. The software allows the business owner to lookup their profit-loss balance sheet, general ledger, and other financial information about their company. This online accounting system helps businesspeople properly track whether their enterprise is making money or not.
Let Accountants do the Accounting for You
Restaurant owners in San Diego should focus on what they do best, and that is to manage their business and produce great food. The accounting aspect of the business should be handled by someone who is experienced and skilled in tracking income and expenses, balancing finances, preparing tax returns, etc. These restaurant entrepreneurs should hire not just any accountant. They should trust only a specialist accountant for restaurant companies.
Our outsourced accounting experts here at Profitwise can provide you with quality services by organizing and summarizing your transactions. We interpret the information we gather from you, so that we can provide you with comprehensive insight as to how your business is doing. Our professionals can present to you the reports and other data that you need to successfully manage your business. We also make sure to be available to you for financial review and questions. For more information about our services, you can call us at +1 (619) 819-0252!