Create a Professional Restaurant Invoice Template for Accounting

Restaurant invoice template for Accounting

hey there restaurant pros dave scott peters here creator of the restaurant prosperity formula and your coach have you ever looked at your profit loss statement and wondered what the hell goes into one or more of your line items have you ever asked yourself what expense goes into that line item and decided not to call your accountant because you're fearful of getting charged more has your profit and loss statement become merely something that pays your taxes versus a critical tool for measuring your restaurant's success if you'd like to understand why any of these have become true in your business stay tuned and i'm going to explain to you restaurant accounting chart of accounts that will change how you look at your profit and loss statement before we do that hey if you like more tips and tricks like this do me a favor hit that like button hit that subscribe button oh yeah that bell so you're notified when my next video comes out and if you want more tips and tricks for running a profitable restaurant or listen to restaurant success stories make sure you tune in to my podcast restaurant prosperity formula found on all your popular podcasting services [Music] [Applause] [Music] so what is a restaurant chart of accounts anyway right it's that line item we see everything outlined step by step by step if you'll hey from cost of goods sold down to labor cost by position to all of your operating expenses well it's more than that your chart of accounts is your personal decoder ring to understanding your restaurant numbers right do you remember that when you were a kid well most of us didn't have that but think all the way back to this you can decipher it this way if you celebrate christmas or even if you don't do you remember a christmas story you know on tbs it plays over and over and over again about the kid who wanted the the bb gun well one of the things at the beginning of the the show is he's listening to little orphan annie on the radio and they've got this code and you've got to order your decoder ring well in this case it was a spinning thing and he's sitting there go drink more ovaltine he was all pissed off but the truth of the matter is isn't that kind of how we feel about our our p l sometimes we look at it and we go down the last number which is our profit and loss get pissed off right we spend all this time but we really don't understand our numbers so let's talk about some of the common mistakes of why a chart of accounts doesn't work very well for most restaurant operators when you look at it you don't know what you're looking at well there's gap versus what being useful gap is generally accepted accounting principles so your cpa or accountant could be doing things based on gaap they take your cost of goods sold divided by your total sales which gives you a food cost of like 10 percent versus useful is cost of goods sold food divided into food sales giving me a 30 food cost something a number that i can understand most chart of accounts we see a lot of people who say just food and alcohol well that doesn't really tell me a lot i need it split up into food n a bath bottle beer draft beer wine liquor merchandise because why each cost of goods sold number will be different when i get to my budgeting part so i need to measure those individually the other part with cost of goods sold often i see again based on gaap or what people always do is they take their full broadline distributor invoice and put it into food well you don't sell toilet paper it doesn't belong in there you don't sell small wares or small pieces of equipment so you've got to split up the food portion of those invoices that go in cost of goods sold alone where we take all the others and put them as line items as expenses now i've got a clear picture of what's going on in my business when it comes to labor i often see salary or hourly front of house back a house well how do you know if there's a problem how do you measure so we need to break it up to salaried managers hourly managers if you're a full-service restaurant servers buses hosts right bar backs bartenders dishwashers prep cooks line cooks you need to break it up that way i can see where my problem points are versus what if i just see one big number called labor but there is a little bit of something you got to worry about is being too too detailed in your chart of accounts versus no detail whatsoever and what do i mean by this too detailed is you've got so many line items that it's an arduous process to look at your numbers that you break every expense into its own little category whereas maybe you're running your business and as i described before you just have salaried hourly you only have food and alcohol you only have like 10 line items and says you know here is my my operating expenses for the restaurant and here is my my debt service here's my rent and so on and there's just almost nothing there and you look at your chart of accounts go what the hell what are all the numbers that go into that one nut line item well you need to find a balance you need to find a balance that when you look at your chart of accounts your profit and loss statement you can read it that you have that decoder ring because here's the deal see there is no wrong chart of accounts they all pay taxes but if you want a chart of accounts that means something to you that gives you the ability to measure your restaurant success then you need to tell your accountant how you want your chart of accounts set up and what expenses go into each line item and you'll be on your way to running a restaurant that gives you the personal and financial freedom you deserve a chart of accounts sets your financial plan into motion because that which we measure improves and if you don't understand your numbers you don't have the opportunity to improve and run the restaurant of your dreams if you're tired of not being able to leave your restaurant because no one else knows how to run it i want to make sure you know it doesn't have to be that way you can leave your restaurant it is possible to build a team of people who know how you want the restaurant to run with these trained and responsible people in place you can give yourself time away what would you do if you had time away from your restaurant would you sleep better would your relationships improve would you feel more relaxed these are all things you deserve to experience as a business owner it's why we own our own businesses if you would like to learn how to own a restaurant that doesn't depend on you to be successful click the link in the description to watch a free training course that teaches you exactly what you have to do also be sure to subscribe to get my weekly tips and watch these two videos to get more information and guidance for running a successful restaurant