Limestone Hospitality

The Top 3 Cash Flow Killers in Restaurants & Bars Running a restaurant or bar is tough enough without unseen expenses draining your cash flow. If your bank account always feels empty, chances are these three costs are eating into your profits: 1?? Labor Costs That Are Out of Control Too many staff on slow shifts? Overtime creeping up? Labor is often the biggest expense in hospitality. Fix it: Use sales data to schedule smarter and cross-train staff for efficiency. 2?? Inventory Waste & Overordering Are you throwing away food every week? Buying too much liquor that just sits on the shelf? That’s cash in the trash. Fix it: Track inventory closely, portion properly, and negotiate better supplier deals. 3?? High Fixed Costs (Rent, Utilities, Subscriptions) Locked into a high-rent lease? Paying for software or services you don’t really use? Fixed costs bleed money quietly over time. Fix it: Renegotiate contracts, cut unnecessary expenses, and make sure every cost adds value. Cash flow is the lifeblood of your business. If you’re always short on cash, it’s time to tighten the leaks. What’s been the biggest cash flow challenge in your business? Let’s talk solutions! #RestaurantFinance #CashFlow #Profitability #HospitalityBusiness #Bookkeeping #Accounting #Restaurants #Bars #Management

Stop Overpaying for Bookkeeping—Save Thousands & Take Control of Your Finances Messy books = messy decisions. If your restaurant’s finances are a guessing game, it’s costing you more than you think. With my outsourced bookkeeping service, you get: ? Expert Cleanup of Messy Books – No more missing receipts, unexplained expenses, or numbers that don’t add up. ? Clear, Accurate Financials – Know exactly where your money is going and stop bleeding cash. ? Tax & Compliance Confidence – Stay audit-proof and avoid penalties. ? Real-Time Financial Insights – Make smarter decisions on labor, food costs, and profitability. ? Significant Cost Savings – Pay a fraction of what an in-house bookkeeper costs, with zero drop in quality. Good bookkeeping isn’t just about keeping records—it’s about making informed, profitable decisions. If your books are a mess, your strategy is too. Let’s clean up your books and take your business to the next level. Drop a comment or DM me to chat! #RestaurantFinance #Bookkeeping #CashFlow #Profitability #Accounting #Restaurants #Bars #Managements

Cash Payroll in Restaurants & Bars: Smart or Risky? Paying employees in cash might seem like a convenient way to handle payroll—especially in a fast-moving restaurant or bar where tips flow freely. But let’s be real: cash payroll comes with major risks that can put your business in legal and financial hot water. Here’s what you need to know: ? Record Everything – Even if you pay in cash, document wages, hours, and deductions properly. No records? You’re inviting tax troubles and lawsuits. ?? Stay Compliant – Paying under the table to "save on taxes" might seem like a shortcut, but it’s a fast track to audits, penalties, and even lawsuits. ?? Taxes & Withholding Matter – Employees still owe taxes on cash wages AND tips. Any cash tips paid out at the end of the night must be declared on payroll to stay compliant with tax laws. If you’re skipping this step, you're exposing your business to risk. ?? Consider Payroll Solutions – Even for tipped employees, digital payroll options make compliance, tracking, and tax filing WAY easier. Cash might be king in a bar, but when it comes to payroll, transparency and compliance rule the game. How do you handle payroll in your restaurant or bar? Drop your thoughts below! #RestaurantManagement #Payroll #HospitalityBusiness #Bookkeeping #Accounting #Restaurants #Bars #Management

Accrual vs. Cash Basis for Restaurants & Bars – Which One is Right? A CPA once told me that restaurants and bars should only use cash basis accounting. While cash basis may seem simpler, it can also create blind spots in financial health. Accrual basis, on the other hand, provides a clearer picture of profitability—especially for restaurants managing inventory, vendor invoices, and employee payroll. Here’s why accrual basis accounting can be a game-changer for restaurants and bars: ? Better Financial Visibility – Recognizing revenue and expenses when they occur (not just when cash moves) helps with planning and decision-making. ? Smoother Cash Flow Management – You can see upcoming expenses and income, avoiding surprises that might happen with cash basis. ? More Accurate Profitability Tracking – Cost of Goods Sold (COGS) is recorded when sales happen, not when ingredients are purchased, providing a more realistic profit margin. ? Easier Access to Financing – Banks and investors prefer accrual-based financials because they reflect the true financial position of a business. While cash basis can work for small, owner-operated establishments with minimal inventory and no accounts payable, accrual basis is often the better long-term strategy for growth and sustainability. At Limestone Hospitality Hospitality, we help restaurant owners choose the best approach for their unique business model. If you're unsure which method works best for you, let’s talk! Do you use cash or accrual basis for your restaurant? Let me know in the comments! #RestaurantAccounting #Bookkeeping #CashVsAccrual #LimestoneHospitality #HospitalityFinance #Bookkeeping #Accounting #Management

?? How Restaurants Can Best Use a Revolving Line of Credit ?? As a restaurant owner, cash flow can be unpredictable. One way to smooth out those ups and downs is by using a revolving line of credit. But like any financial tool, it’s important to use it wisely. Here are a few tips on how your restaurant can make the most of a revolving line of credit: 1?? Cover Short-Term Cash Flow Gaps When you're waiting for big payments or experiencing seasonal dips, a revolving line of credit can provide a safety net. Use it to bridge the gap without affecting day-to-day operations. 2?? Invest in Inventory During high-demand seasons or for special events, you may need to purchase inventory in bulk. A line of credit can help you secure that stock without putting pressure on your operating cash. 3?? Take Advantage of Growth Opportunities Have the chance to expand your menu, remodel, or add a new location? A revolving line of credit can give you the flexibility to invest in opportunities that drive long-term growth. 4?? Avoid High-Interest Loans Instead of turning to high-interest loans or credit cards when you need quick cash, use your line of credit for lower, more manageable interest rates. Just remember to pay it off quickly to avoid interest charges. 5?? Manage Emergencies Smoothly Unexpected costs—whether it's a kitchen repair or emergency staffing needs—can come up at any time. A revolving line of credit gives you a cushion to handle those situations without derailing your finances. ?? What NOT to Do: Avoid using your revolving line of credit for non-essential or luxury purchases. It's easy to get tempted, but it’s meant for managing business needs, not funding personal expenses or unnecessary upgrades. ?? Using a revolving line of credit wisely can help you stay agile and prepared for whatever comes your way. Just make sure to monitor your balances and pay it off regularly to keep things running smoothly! ?? What financial tools do you rely on to keep your restaurant thriving? Let’s chat in the comments! #RestaurantFinance #CashFlowManagement #RevolvingLineOfCredit #RestaurantGrowth #SmartInvesting #Restaurants #Bars #Bookkeeping #Accounting #Management

Weekly vs. Bi-Weekly Payroll: What’s Best for Your Restaurant? Payday matters—not just for your employees, but for your cash flow and operations too. So, should you pay your team weekly or bi-weekly? Here’s the breakdown: ?? WEEKLY PAYROLL (Best for hourly staff & high-turnover environments) ? Employees love the consistent cash flow. ? Helps retain staff in a competitive labor market. ? Can strain your restaurant’s cash flow. ? More frequent payroll processing = higher admin costs. ?? BI-WEEKLY PAYROLL (Best for stability & cost savings) ? Fewer payroll runs = lower processing fees & admin workload. ? Helps with cash flow management & forecasting. ? Some employees may struggle with longer pay gaps. ? Tip-heavy staff might prefer weekly payouts. ?? The Smartest Move? Many restaurants use weekly pay for hourly staff and bi-weekly for salaried managers to balance cost & employee satisfaction. ?? Should You Offer Direct Deposit? Yes! Direct deposit reduces errors, eliminates lost checks, and speeds up payroll processing. Plus, employees get paid faster & more reliably. Some states even allow mandatory direct deposit—check your local laws. BOTTOM LINE: Choose the payroll schedule that supports your cash flow while keeping your team happy. **And if you’re not offering direct deposit yet, it’s time to make the switch!** How often do you pay your team? Drop a comment below! ?? #RestaurantPayroll #CashFlowManagement #RestaurantSuccess #PayrollTips #Restaurants #Accounting #Bookkeeping #Payroll #Management

Restaurant & bar owners: Is your bookkeeping costing you money? If you’re constantly guessing at your profits, struggling with cash flow, or dreading tax season, you’re not alone. Bad bookkeeping leads to wasted money, unnecessary stress, and decisions based on gut feelings instead of real numbers. I help restaurants & bars take control of their finances with clean, accurate books—so you always know where your money is going and how to increase your profits. Ready to stop the financial headaches? Let’s talk. DM me to get started! #RestaurantAccounting #BarBookkeeping #KnowYourNumbers #Accounting #Bookkeeping #Restaurants #Bars #Management

Would you wait for a health inspector to show up before cleaning your kitchen? Then why wait until tax season to organize your books? Too many restaurant owners wait until tax season to look at their numbers—only to realize they’ve left money on the table (or worse, overpaid in taxes!). ?? Disorganized Books = guessing your way through the year ?? Organized Books = confident decisions, better cash flow, and max tax savings The secret? Consistent, accurate bookkeeping. It’s not just about tax time—it’s about knowing when to adjust costs, optimize menu pricing, and plan for growth. But here’s the thing: You don’t need to be the one crunching the numbers. ? Outsourcing bookkeeping means: ?? Accuracy without spending hours on spreadsheets ?? Real-time insights to guide smarter business moves ?? Maximum tax savings without last-minute scrambling ?? More time to focus on what you do best—running your restaurant! The best operators don’t wait until the end of the year to clean up their books. They keep them in order all year long. Are you ready to do the same? DM me to learn how outsourcing your bookkeeping can save you time, stress, and money! #RestaurantFinance #BookkeepingMatters #RestaurantSuccess #TaxSavings #OutsourceSmart #FinancialClarity #Profitability #RestaurantOwners #Bookkeeping #Accounting #TaxSeason

??? Think Your Restaurant Is Worth $1M? Investors Might Disagree… If an investor asked, “What’s your valuation?”—would you have a rock-solid answer, or would you be guessing? Many restaurant owners overestimate their worth (scaring off investors) or undervalue their business (leaving money on the table). The key? Knowing your numbers and choosing the right valuation method. 3 Ways to Value Your Restaurant (And How to Pick the Right Multiple) 1?? EBITDA Multiple Method (Best for profitable, established restaurants) Take your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Multiply it by an industry standard multiple (typically 3x–6x). CHOOSING THE RIGHT MULTIPLE: ● 3x–4x → Average independent restaurant with steady profits ● 5x–6x → Multi-location, scalable concept with strong brand & margins Example: If your EBITDA is $250K and your multiple is 4x, your valuation = $1M. 2?? Revenue Multiple Method (Best for high-growth, low-profit restaurants—like fast casual or ghost kitchens) Take your annual revenue and apply an industry multiple (0.3x–1.5x). CHOOSING THE RIGHT MULTIPLE: ● 0.3x–0.6x → Standard full-service restaurant with average margins ● 0.7x–1.5x → High-growth brands with proven scalability (franchisable, tech-driven, strong customer loyalty) Example: A restaurant generating $2M in revenue might be valued at $600K–$3M, depending on scalability. 3?? Asset-Based Valuation (Best for struggling restaurants or early-stage concepts) Add up all tangible assets: equipment, real estate (if owned), inventory. Subtract liabilities: debts, loans, lease obligations. CHOOSING THE RIGHT MULTIPLE: ● No multiple used—this is a hard-asset valuation, typically a last-resort method. This sets a floor value—what your business is worth in a worst-case scenario. ?? What Impacts Your Multiple? ? Profitability – Higher margins = higher multiple. ? Brand Strength – Scalable, well-known brands get premium valuations. ? Growth Potential – Investors pay more for concepts that can expand. ? Operational Efficiency – Well-run businesses command higher multiples. ? Market Trends – Fast casual & delivery-first models often get higher multiples. ?? Before talking to investors, know your numbers! A solid valuation helps you attract the right partners and negotiate from a position of strength. ?? Need help running the numbers? Drop a comment or DM me—I’ll show you how to value your restaurant with confidence. #RestaurantInvesting #Valuation #RestaurantSuccess #KnowYourNumbers #Restaurants #Bookkeeping #Accounting