Running a pub or club can be rewarding, but as an owner, you know it requires commitment – especially during peak seasons! During busy periods, pub and club owners often find it difficult to keep records. Tiresome as it may sound but these important admin tasks cannot be neglected. Why don’t you start setting up a reliable system to make keeping books up to date easier? Here are some tips.
If you book live entertainment, make sure you issue receipts or keep invoices as payments as these are often made in cash. Have the receipts signed to acknowledge the fee for a clear audit trail as well. Remember that cash takings must be recorded carefully too! Use separate sales codes on Xero for various transaction types for easier reconciliation of cash takings.
Another good practice is to separate dry and wet sales. Your accounting will be a lot clearer if tills are set up to differentiate food and drinks. Keeping an eye on gross profits and margins will be easier when different income streams are specifically coded. Don’t forget to factor in other forms of income such as vending machines or overnight room bookings.
If you have different moving parts in the business, separate them into units, which could be any of the following: Dining (such as the restaurant or café), bar, events hire, accommodation, and gaming. Organise your accounting or bookkeeping system to be structured under each business unit and use accounting software to record bulk sales and purchases to have a tracking system. The profit & loss statements and performance reports must be separate for each unit, so you can monitor the performance of each one accurately.
Have your accountant produce a report that shows all assets purchased for each business unit and the total depreciated amount for the assets to understand the costs involved with the purchases, so you know which ones have already been deducted or are yet to be deducted.
It’s important to keep all employees on the payroll, including casual staff. Even temporary waiting or bar staff must be in your payroll scheme. If you pay them in cash, ask them to sign a receipt and keep these copies as well.
Control your stock diligently as margins in the hospitality industry can be slim. Know what’s selling well and where you need to make changes. File away credit notes for short deliveries or breakages and most importantly, split private and business expenses clearly!
Make sure you’re reviewing the performance of the business each month, so you don’t miss on identifying any opportunities to improve it. At Outside, we can help you do all these, so you can better manage your business finances and just have fun at the bar. Let’s put a plan together today! Give us a ring and we’ll get you all set up in no time.
Your Outside Team
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
Evaluating a franchise opportunity requires careful analysis of various factors to ensure long-term success. Here are 11 essential points to consider before purchasing a franchise:
Steering a small business through economic downturns can be challenging, but these moments also present opportunities for growth, innovation, and strategic change. Deciding whether to pivot, grow, or leave the business depends on factors such as market conditions, financial stability, and personal aspirations. Here’s a guide to help you navigate tough times:
As a business owner, reviewing your financial reports each month is essential for maintaining control and steering your business in the right direction. Here are six key reasons why you should prioritize this important task.
Starting your own business is exciting, but handling all the financial details can be overwhelming. Instead of spending your time managing the books, you could focus on growing your business. This is where expert accounting firms like Outside Accounting step in.
Choosing the right accounting software is crucial for your small business, and with so many options available, it can be challenging to decide which one is best. Xero Accounting Software stands out as a popular choice, but what makes it so special? In this article, we’ll explore six key benefits of using Xero for your small business. If you’re looking for a skilled, cost-effective accountant in Wellington to assist with your small business bookkeeping, reach out to the friendly team at Outside Accounting today.
Bookkeeping fraud, including embezzlement and theft from company accounts, can quietly drain your business’s resources for years before being discovered. The consequences can be devastating. This guide will explore how bookkeeping fraud happens and provide five effective strategies to protect your business from it.
ALL POSTS
NEWSLETTER SUBSCRIPTION