Avoid These 5 Bookkeeping Mistakes! To Boost Your Profits

Today, we are talking about critical mistakes you're making with your restaurant accounting. Plus, we will share how you can to avoid them. Bookkeeping is the backbone to the success of your business. You could be missing out on some major tax deductions! Before we dive right in, I want to remind you to continue reading until the end for a free gift!

Not taking bookkeeping Serious

It's time for you to start taking your bookkeeping serious! As a restaurant owner, bookkeeping is a core part of your business. It must properly set up and accurately maintained. If you’re feeling stuck right now or, you're not sure where to start, complete the intake form online or Book a FREE 15-Minute Clarity Call with a professional bookkeeper. We offer bookkeeping services for restaurants, Bakeries, Bars, and catering businesses. We will help you get unstuck by guiding you in the right direction.

Improper Expense Categorization

Do you really want your business to outlast the test of time? I highly recommend that you make sure you accurately categorizing your business expenses. We believe bookkeeping should be fun and easy. If you need help with bookkeeping for your restaurant, book your FREE 15-minute clarity call today!

Failing to reconcile books with bank accounts

Reconciling your bank statements means comparing your internal financial records against the records provided to you by your bank. This process is crucial because, it ensures you can identify any unusual transactions caused by fraud or accounting errors as soon as possible.

Misclassifying staff

Does your restaurant have both employees and outside contractors as well? You must make sure you’re documenting each the right way. Otherwise, It will cost you a lot of money over time. Here’s an example: with employees, you set their hours and pay taxes for each employee. With independent contractors, they determine their own hours, submit an invoice for the work they completed, and they are responsible for paying their own taxes. Don’t try to cheat the system, it will cost you more in the long run.

Keeping it All In House

If you’re doing your own bookkeeping, you’re likely doing it for one of two reasons. Either because you feel you’re the only one that can do it right or, you can’t afford to hire a bookkeeper yet. Stop trying to lower costs by handling your own bookkeeping. Doing your own bookkeeping could be costing you in tax deductions. As a business owner, I know you understand time is money! Every minute you spend doing your own bookkeeping task will keep you away from being able to focus on other important areas of your business

Additional Bookkeeping Mistake to Avoid as a Restaurant Owner: 

• Neglecting Regular Updates
• Mixing Personal and Business Finances
• Not Keeping Receipts and Records
• Ignoring Technology and Automation
• Not paying attending when it’s time for you to outsource your bookkeeping.

Ready to transform your restaurant's finances? Whether you need Monthly Bookkeeping, a Catch-up Bookkeeping service, or want to embark on our DIY Bookkeeping Course, we've got you covered. Have questions or need more information? Don't hesitate to reach out. Let's talk about how we can support your business. Schedule your FREE 15-Minute Call today and let's get started on your path to stress-free bookkeeping!