Effective Financial Management for Multi-Location Restaurants

Running just one restaurant is already a lot of work, but when you're responsible for many, it gets even tougher to deal with the money side of things. Here, we'll share some practical tips that you can use right away to manage the finances of your multi-location restaurants.?

Let's take a closer look at important ways to make sure you understand your money well and keep your restaurant business doing great.???

Keep Your Account Chart Simple?

Picture your restaurant's finances as an intricate puzzle, with each piece representing a different expense or source of income. The chart of accounts serves as your navigational map, helping you fit these puzzle pieces together seamlessly. For multi-location restaurants, consistency is key.??

Having a standardized chart of accounts that all your locations adhere to is essential. This consistency streamlines financial analysis, allowing you to easily compare data across various locations and gain a holistic view of your business.?

Here are some simple suggestions for restaurants:?

Food and drinks?

Split the money you earn and the expenses you have into three parts: one for food, one for alcoholic drinks, and one for non-alcoholic drinks. This makes it simpler to figure out how much money you're making from each category.?

Employee pay?

Paying your staff is one of the biggest costs for a restaurant. If you keep a close eye on this, you can find ways to spend less on labor and make sure it's not hurting your profits too much.?

Also, check out our new blog for more information - Why Do Restaurant Owners Need Bookkeeping Services? ?

Making use of your POS system?

Your POS (point of sale) system is the heartbeat of your restaurant's financial operations. It records every sale, manages inventory, and even aids in payroll calculations. For multi-location restaurants, adopting a unified POS system can be a game-changer. This system allows you to centralize data, making it simpler to monitor sales, track inventory, and manage expenses across all your locations. Moreover, it streamlines reporting and enhances decision-making capabilities.?

Keep an eye on your daily sales report?

Think of a daily sales summary as a quick snapshot of your restaurant's financial well-being. Each location should generate one, outlining essential details like sales figures, discounts, refunds, and payment methods. These daily summaries serve as invaluable tools for monitoring the performance of each location and swiftly identifying any irregularities or opportunities for improvement.?

Organizing financial streams?

Dealing with finances from various locations can become chaotic if all the funds are funneled into a single bank account. To maintain financial clarity, consider setting up separate bank accounts for each restaurant location. This approach simplifies tracking income and expenses for each spot and facilitates the reconciliation of financial records.?

Categorizing transactions?

Utilizing accounting software equipped with a "class" feature can greatly benefit multi-location restaurants. This feature allows you to categorize transactions by location, making it easier to generate location-specific financial reports. This categorization proves especially useful for comparing the performance of different locations and identifying long-term trends.?

Ensuring transparency and security?

Cash handling can pose challenges, particularly when managing multiple locations. Implementing stringent cash handling procedures at each establishment is critical. This includes daily cash reconciliation, secure cash storage, and a well-defined process for addressing discrepancies. Additionally, consider limiting the amount of cash on hand to mitigate security risks.?

Outsource your bookkeeping?

Managing the finances of multiple locations can quickly become overwhelming. Consider hiring a outsourced accounting company for professionals who specialise in restaurant finance. These experts can take on responsibilities ranging from reconciling accounts to generating financial reports, providing you with peace of mind and the freedom to concentrate on expanding your restaurant empire.?

Conclusion?

Handling the money for a restaurant with many locations can be tough, but it's vital for success. By using the tips mentioned above and considering professional bookkeeping services like 'BookkeeperLive ,' you can build a strong financial system. This will help you keep an eye on what you earn and spend, make smart choices, and guarantee your restaurant stays profitable in the long run. With the right financial strategies and expert support, we can help your restaurant business thrive across multiple locations.?