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Beyond the balance sheet

How to manage restaurant accounts? Time to hire an advisor

Joe Lennon 12/6/2019 2 minute read

Joe Lennon FCCA explains that if the financials aren't your area of strength then you may need professional help.

One of the biggest changes in the labour market over the last 10 years has been the growth in the number of people starting their own business. Nowhere has this growth been more apparent than in the hospitality industry, most notably in restaurants.

New entrants and the skills of entrepreneurs

A study of who these new entrants are is interesting with recent migrants to the UK, college leavers, and chefs featuring predominantly. However, these 3 groups have several common features. Many have great energy, a love of food, and a desire to be their own boss.

Get a FREE meeting to help you set up and mange your restaurant accounts

Their issue is they may lack business experience and in particular financial skills. Running a successful restaurant, and avoiding the common errors, is just as much about the core business skills as it is a passion for food and delivering excellent service. Hence the question, how to manage restaurant accounts?

The need for an advisor

This is where having an accounting firm and advisor to hand can be such a help for new entrants to the sector. In the early years of the business, technical help with the following among others is essential to survival:

  • Knowing when and how to apply VAT
  • Dealing with tax issues
  • Cash flow management
  • Record keeping for compliance and to understand performance
  • Setting up and running the TRONC

Having a small firm of advisors available in this capacity is akin to your own fully qualified Finance Director, but only when you need it. The reality is few businesses can afford a full time finance executive in their early years, unfortunately this is exactly when one is required.

Why an outsourced FD could be necessary for your new, restaurant business

If you're an early stage business in the hospitality trade and you don't have a financial background then hiring a specialist firm in the trade, will help set your business on a sound footing.

Fail to do so and many of the points mentioned above could spiral out of control with dire consequences. On the other hand, act on this advice and the chances of a bright future could be much improved.

A free meeting to help proprietors manage their restaurant accounts

The content of this post is up to date and relevant as at 17/06/2019.

Please be aware that information provided by this blog is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this blog.

 

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