This reporting is typically called “flash reporting” or daily / weekly “P&L’s”. As consultants first, we view internal financial reporting as THE most important. Without it, the company can’t possibly make quick adjustments necessary to maximize profits. The key here is to make sure the numbers are accurate so the automation of this process is extremely important. The goal is to eliminate human error and make the process simple and not time-consuming. It’s important for management to spend time analyzing the numbers, not wasting time getting them into the system.

This can either be done internally or outsourced to a bookkeeping service or CPA / accounting firm. Larger restaurant companies with several locations would normally have internal staff to do all the financial reporting. For smaller restaurant companies with a few locations or less will typically outsource this function. The importance of this financial reporting is to validate all the numbers as often as possible and check the accuracy of the internal flash reporting process in place. Again, the quickest, most accurate, detailed financial reporting is the key, so period or monthly financials are preferred over quarterly, semiannual or annual financial reporting.