Restaurant companies come in all shapes and sizes. No matter the size, all restaurant companies need quick, accurate, detailed financial reporting in order to continually make adjustments in this highly competitive industry.
Financial reporting comes in all shapes and sizes as well. Again, the most important thing is to get quick, accurate, detailed financial reporting from which to run the business. The following are financial reporting needs in the industry:
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.
At KROST, our standard industry-specific financial statements reporting package gives our clients relevant information from which to operate their companies successfully and are in a format widely utilized by the industry. In addition to the standard reporting statements, we include comparative financials (prior periods, months, and years), supplemental cost of sales analysis, franchise-specific statements, check averages, head counts, graphs, and more.