WHAT NEEDS TO BE ACCOUNTED FOR IN YOUR RESTAURANT
BE AWARE OF WHAT IS REQUIRED
Restaurant owners rarely know how much accounting is required to run their restaurant. Naturally, they just assume that the accountant “just handles it”.
But does the accountant really handle it?
Many restaurant owners come to us with the full accounting functions being split between an in-house person, an outside payroll company, the owner and an outside CPA or accounting firm.
Splitting the various accounting functions can lead to very bad consequences – missed tax deadlines, non-payment of taxes, undetected theft, and major problems as a result of unclear differentiation of duties. When a bad error occurs, each party points the finger at the other party and many times they are justified because there are holes in the process.
Kallas has built its practice around efficient performance of the full accounting cycle just for restaurants.
This helps us to know precisely what you need and helps you simplify your life and make sure all areas of need are covered.
In the next few issues of the newsletter, I will publish our copyrighted Accounting Cycle Worksheet which identifies what needs to be accounted for in your restaurant. Each restaurant is different so some items may not be applicable to you.
The Worksheet is divided into five cycles: the Sales Cycle, the Purchasing Cycle, the Accounts Payable/Disbursements Cycle, the Payroll Cycle and the Financial Statements/Tax cycle.
In previous issues we addressed the Sales Cycle and the Purchasing Cycle. In this issue, we look at the Accounts Payable-Disbursements Cycle
Who performs each of these functions?
TIP: For security purposes, never let the person who cuts checks also reconcile your bank account. Your reconciliation should be done by yourself or an outside service to avoid theft. Most embezzlements occur when an employee has control of both check writing and bank reconciliation.
To conclude, you should be aware of who is responsible for each of these above functions to avoid inevitable problems later.