Five simple steps to do the financial statements of the foodservice : quickly understand how much you earn each month?|ManualTrader

Five simple steps to do the financial statements of the foodservice : quickly understand how much you earn each month?

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The foodservice is one of the most frequently chosen entrepreneurial projects by most people.Many bosses in the foodservice have never studied accounting or find it difficult to do accounting.Therefore, I do business based on my feelings, and I don’t know how to make more money every month. This is very dangerous.In a small business, it is not very difficult to prepare financial statements by yourself. As long as you keep a record of every income and expenditure,It takes a few hours at the end of each month to produce a financial report for the store.

Do not use complicated accounting theory, just use the simplest way to tell you how to make a financial statement for a small shop:

What happens if there is no financial report?

Problems you may encounter:

Cost mismatch, wrong pricing.

The employee has misbehavior (stealing food or stealing money) and the boss didn’t notice it.

Hiring too many employees leads to high personnel costs.

I didn’t count my salary, thinking that the store was making money, but actually didn’t make money after deducting my salary.

Profits are not good but I don’t know where to start to improve.

Benefits of preparing monthly financial statements:

Understand the monthly store revenue trends to arrange the most appropriate manpower and make corresponding business strategies.

Understand the proportion of various expenses and find out where you can save costs and increase net profit.

With digital management, if there is any abnormal situation, it can be found in the first time.

Clearly know the monthly net profit to help business decision-making, whether to continue to expand operations or to adjust the direction.

Share dividends or reinvest with shareholders based on earnings figures.

Financial statement preparation step 1: Calculate the current month’s operating income.

Operating income is determined by price and sales volume. Daily sales × average customer unit price is the daily operating income.It should be noted that there may be many sources of operating income for a store.

For example: takeaway income, cash income from shop consumption, credit card income, third-party payment income, etc.,Some of the money remitted to the boss’s account requires commission and handling fees to be deducted.In order to facilitate the reconciliation, it is best for the restaurant owner to open a separate bank account to collect the money.The amount actually credited to the account each month is regarded as the operating income of the current month (if there is a time difference between different platforms, you need to adjust it yourself).

Financial statement preparation step 2: Count the inventory at the end of the month and calculate the cost of raw materials used in the current month

The cost of raw materials is generally the item that accounts for the largest proportion of in-store expenditures, which will greatly affect profitability, so effective control must be done.To calculate how much the raw material cost of the current month is spent, first of all, an inventory count must be carried out at the end of each month.

List all the raw material items and unit prices in the store, and calculate the total value of the raw material inventory in the store at the end of the month.After listing the original material list and unit price with excel, you can quickly calculate the inventory value by typing in the inventory quantity every month.The cost of raw materials in the current month = the cost of raw materials in the current month + (inventory at the beginning of the month-inventory at the end of the month)

For example, the cost of raw materials this month is 100,000 , the inventory is 30,000  at the beginning of the month, and the inventory is 40,000 at the end of the month.Then the cost of raw materials used that month is 100,000 + (30,000-40,000 ) = 90,000

Financial statement preparation step 3: Calculate the fixed cost of the month (rent, personnel expenses)

Rent and personnel expenses are fixed costs in the financial report.In other words, no matter how much store revenue is today, these are fixed costs.Therefore, if the operating income is higher, the ratio of fixed costs to revenue will be lower, and the net profit will naturally be higher.

Financial Statement Preparation Step 4: Calculate other expenses of the month

(Water, electricity, gas, telecommunications, taxes, miscellaneous fees, etc.)In addition to the three largest expenditures of raw materials, rent, and personnel costs, the store will also have various expenses to be paid every month.

Including water, electricity and gas, internet fees, telephone fees, taxes, and other miscellaneous expenses (such as garbage disposal fees, purchasing cleaning supplies, repairing equipment and equipment, printing advertising leaflets, etc.).It is best to use excel to register the date, item and amount of these expenses each time they are spent.In this way, at the end of the month, you can directly and quickly count the current month's expenses.

Financial Statement Preparation Step 5: Preparation of Forms

Calculate net profit by subtracting various costs and expenses from operating income.After finishing the statistics of the above figures, use excel to enter the figures in the last one to calculate the net profit for the current month.Net profit = operating income-raw material cost-fixed cost-other expenses.

After calculating the net profit, divide the expenditure figures by the operating income.You can know the percentage of various expenses in operating income and what is the net profit.Net profit is very important. It represents how much money can be made for every 100 of income. The higher the net profit, the better the profitability.

Reminder: To achieve idealization of financial figures, a continuous adjustment process is required

When a novice is opening a store, it is absolutely difficult for financial figures to reach the ideal standard from the beginning. There are several reasons:

The manpower needs to be grasped relatively loosely when the store is first opened. The reason is that the personnel are not yet ready, and there may be unsuitable personnel who need to be eliminated. If the personnel are grasped too tightly when the store is first opened, it may cause the guests to wait too long and the quality of the food may be poor. Stability, lack of manpower due to personnel mobility.

When you first open a store, stocking is difficult to control, and it is prone to wear and tear, so the cost of ingredients may be high.It is recommended not to do too many activities when you first open the store. The goal should not be to increase turnover, but to smooth the entire operation process, and let the staff get started quickly, and wait until it stabilizes before doing activities to increase turnover, which will achieve a complementary effect.

Based on the above reasons, it would be great if you can operate normally as long as you don’t lose money just one or two months before opening the store.In the later stage, through digital management, we can find out the crux of the problem and continue to improve, I believe we can achieve better financial indicators.

Quick focus: Why do you want to make a financial report for the foodservice?

The preparation of financial statements allows the catering owner to quickly understand the operating conditions of the store. The owner or employee must develop the habit of keeping accounts and know the source and whereabouts of each income and expenditure, so that it will be easy to prepare the financial report.

After the financial report is made, it is more important to draw up a corresponding improvement plan based on the numbers, so as to continuously optimize the store's revenue and profitability.

It is the same to look at financial statements. For investors and business operators, the focus is different. Investors’ focus on financial reports is to find trends and detect potential problems, while business operators’ focus on financial reports is to examine Do your goals and plans reflect financially?

There are many types of business. For entrepreneurs in the foodservice, because the foodservice is essentially an industry with very strict cost control, the quality of cost control directly determines the level of profit and the long-term survival of the company. If you are a boss, you must have one. The method allows oneself to check the financial situation correctly, instead of just looking at the feeling and looking at the cash balance.

Buffett once said: If you want to be a good investor, you must be a good business operator. As a good business operator, he can turn back and make him a more successful investor.

If you want to learn more about sideline business and entrepreneurship, you can go to inshat

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