Throughout the last two years, the hospitality industry has seen its fair share of ups and downs.
Many businesses will be looking to their accountants for advice about where they can spend and save money. Especially in the current cost of living crisis.
So why is accounting important for the hospitality industry? Let’s find out.
Keep proper records
Record keeping may seem a bit dull – and that’s because, when it’s added to your routine, on the whole, it can be.
When you’re running a busy restaurant, or looking after your regulars in your pub, time away from your punters can be seen as time you’re not spending taking care of them.
But fail to keep proper records, and you could find yourself in serious trouble further down the line.
Hospitality can be a volatile industry, and by not performing your due diligence, you could find yourself in all kinds of bother. There won’t be any clients to look after if you’ve been closed down due to bad record keeping.
By keeping proper records, you can track your revenue and expenses, spot trends and look for areas of improvement. Were you spending too much last year on stock that you weren’t selling? Or not paying your staff double pay on bank holidays?
You’ll be far better at managing your budgets and forecasting, and you’ll have a clear idea of where to spend or save money depending on the results.
And, of course, you’ll stay compliant with laws and regulations – making sure to avoid a run in with HMRC.
Make the best decisions
When you have a regularly updated set of accounts, with all of your records linked effectively and effortlessly, you’ll be able to understand how you’re performing.
Whether that’s through:
- financial reports
- graphs and data charts
- understanding your yearly trends
You’ll get a clear picture of your financial performance and be able to quickly spot opportunities. Opportunities like saving money on your stock, or spending more on bringing new staff members in.
Then you can set prices and pricing strategies accordingly and have your year planned out in advance, so when quiet season comes around you’ll know you have a solid plan in place to deal with it. This is especially vital for seasonal firms (wedding caterers, or travel companies for example) who need to know they aren’t going to run out of cash by the end of January.
Technology is key
Embracing accounting technology in business is vital – and hospitality is no different.
By automating your processes through a cloud platform, you’ll be able to chase suppliers in seconds without having to pick up the phone once.
You’ll have access to data and analytics, giving you real-time reporting capabilities to help you make the best decisions and better understand your financial performance.
You can use these systems to make your life as simple and effective as possible, and encourage best practice throughout your business. If you’re running a business with multiple EPOS tills, for example, the data from these can be fed straight into accounting software.
Talk to your accountant
Accounting is vital for the success of your hospitality business. Without reliable and regular reports, financial records, and access to technology, you’re almost leaving your money up to chance, rather than taking control of your affairs.
Of course, getting setup can be daunting – or even porting over your records to anew system seems a pain from the outset.
But that’s why we’re here – we can help get you set up in no time, walk you through our processes and help you to embrace cloud accounting. In no time at all, you’ll be on top of your finances, and ready for another year of business.
Get in touch with us today to talk about how accounting could change your hospitality business.