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You probably didn’t open a new restaurant or cafe just to get buried in paperwork, but keeping your accounting in check is crucial for growing strong. The truth is, understanding the ins and outs of your finances can be the difference between success and stress.
Accounting vs. Bookkeeping: What’s the difference, and why do you need both?
Before diving deeper, it helps to understand what each actually does for your business.
Bookkeeping is the daily work: tracking sales, recording expenses, managing payroll, and keeping everything organised.
Accounting takes that information and turns it into something you can use. Your accountant will prepare financial statements, help with tax, and offer advice that supports long term planning.
You need both because bookkeeping gives you reliable data and accounting helps you make better decisions with that data.
However, even with a good bookkeeper and accountant, it still helps to understand your own numbers. Once you know how to read your reports, it becomes much easier to spot issues early and make small changes that lift profit and keep your venue running smoothly.
A quick glossary of key financial terms
To help you get the most out of your restaurant accounting, here’s a quick cheat sheet of some financial terms you’ll likely come across:
Revenue: The total income your business rakes in from sales before deducting expenses.
Gross profit: Your revenue minus the cost of goods sold (COGS). It’s what’s left after covering the costs directly related to producing your menu items.
Net profit: The actual profit after all expenses, including wages, rent, and taxes, have been deducted. It’s the money you get to keep.
Cash flow: The flow of money in and out of your business. Positive cash flow means you’ve got more money coming in than going out, which is a good place to be.
Assets: Everything your business owns, including equipment, inventory, and cash.
Liabilities: Everything your business owes, including loans, accounts payable, and other debts.
Now that we’ve covered the basics, here’s how you can make managing your restaurant or cafe finances a breeze.
- Find a financial dream team
Just like service, numbers run smoothly when the right people are in place. A good bookkeeper can take care of the day to day tasks such as payroll, sales reconciliation, and expenses. Your accountant can handle tax obligations and help you plan ahead.
If you enjoy numbers or want to take on some of the work in-house, that is completely doable. It simply requires time, consistency, and a clear system.
- Nail your internal processes
Solid routines keep your numbers in shape. A few helpful habits include:
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Reviewing your profit and loss, balance sheet and cash flow regularly
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Staying on top of GST, PAYG and super
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Streamlining payroll, especially if your team is growing
If these tasks feel a bit overwhelming, you are not alone. Most owners never receive formal financial training and learn everything the hard way. Psst…that is exactly why Crunch exists. We simplify the business side of hospitality so you can stay focused on the parts of the job you actually enjoy.
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- Centralise and simplify
The right accounting software is a lifesaver. Tools like Xero, MYOB, and Square are popular for a reason. They integrate with POS systems, automate invoices, and provide real time data so you can see how your business is tracking.
Connecting your POS to your accounting software also means fewer manual entries and fewer errors. Many platforms now offer staff time tracking too, which can make payroll far smoother.
Software makes everything easier, but it still helps to know what the numbers are telling you. This is where structured learning and guidance can make a real difference.
With the right knowledge, team, and tools, you can make your restaurant accounting as smooth as a perfectly frothed latte (sorry, we couldn’t resist).
Remember, Crunch is here to help you every step of the way. Whether you’re just opening a new café or looking to expand your restaurant footprint, our app provides expert-led training, practical tips, and a community of hospitality pros ready to share their secrets. Start your free 30-day trial today.
Just starting out? Read our tips for getting started in the hospo industry here.
