Startup Accounting Services For Food Catering Business: How to Begin?

Startup Accounting Services

Published: 02/24/21

Turning your passion for food into a business endorsement is one of the best ideas you can ever invest in. With the right startup accounting services tagging along you can become an overnight success even (no joke!) and you can earn profit too. Even if you are toying with the idea of starting a food catering service, accounting still remains one of the most important aspects of the business to become successful.

A lot is involved in the food business from managing inventory to sales to counting the number of sales in a day or on a weekly basis and so on. Without the help of an accountant, you cannot manage things properly.

Since it’s a small business, you can take help from online accountants who charge nominal fees to accommodate your food catering business in the long run.

Accounting Services For Startup: Food Catering Business

Before you get up and about running a food catering business even at a small level, you need to understand the language of hospitality finance.

A catering company, even as a moving food truck, provides food and beverage for private and corporate events. The task is to keep the guest well-fed with the selected menu of delicious food, drinks, and snacks. You can offer a customized menu as you will be responsible for planning the menu, hiring cooking and serving staff, and cooking and delivering the food to the desired location.

So within a limited budget, you can offer some of the following services for your catering business;

  • Food Catering
  • Beverage Services
  • Bartending Services
  • Hot Or Cold Buffet Setup
  • Chair And Table Rentals
  • Dining Area Set Up And So On

If you are sticking purely to food catering then it’s great. It’s the core of the catering business. You can offer full service and charge as per dollar need.

However, CPA fees for small business charges must be kept in mind when you plan to hire one to handle your accounts. So here’s what you need to remember.

  1. Find The Bookkeeper

There are plenty of bookkeeping startups, like My Count Solutions, available online that assist small businesses just like yours. As the owner, you will face some challenges to run the business and manage the accounts on your own. Staffing, inventory management, and controlling the cost of the goods sold is a time taking tasks.

A Professional Bookkeeper understands the complexity of the food industry and therefore can manage the front and back house management.

  1. Accounting Software

A proper CPA Portal will help to streamline all the data entry tasks too. If you want to customize the invoices, track the revenue, and create profit or loss statements.

The ideal accounting software will let you report the documents and is easy to use and allows you to access the data online anytime you want.

  1. Set Accounts Chart

You must be able to categorize the accounts to set the cash flows. The most common set includes the assets, liabilities, expenses revenues, and owner’s equity.

When you hire professional help even if it’s remote or online then they can break down the accounts into business-specific categories too like inventory and sales, marketing and advertising, and so on.

They can monitor the metrics rather easily.

  1. Point Of Sale System

You want to manage your cash, and receipts, whether it’s via texts or emails. Even inventory management and ogre management need to be properly managed. When you get the hang of a bookkeeping startup they help you stay organized and put about all the related tasks.

Besides they also track the necessary factors like;

    • Payroll

For the food business, it can be a daunting task to track the employee’s working hours. Work hours are irregular and different types of payment can be a hassle.

    • Accounts Payable

Paying vendors and suppliers on time is important. Updating the invoices on the accounting software is important to generate the payment schedule.

    • Expenditures

Given that money primarily comes from one source, tracking income is now easier than tracking expenses. This is so that different costs, such as rent, wholesalers, and other restaurant-related expenses, can be accounted for. Being organized in this area is essential necessary because disorganized bills and invoices are bad for business. For every busy restaurant, choosing restaurant accounting outsourcing is the ideal choice.

    • Inventory

For a small food catering business, you optimize the inventory you buy and reduce food waste.

    • Cash Management

Saving the raw materials, and getting more customers means earning more jobs which ultimately would lead to more cash inflows.

    • Sales

Keep track of the expenses and the profits being made. That’s what startup accounting services are for. Thankfully, outsourcing has come a long way. The days when your waiter had to scribble down the orders on a piece of paper and tape it to the chef’s window are long gone. You can track sales, correctly organize them into custom tabs, and reconcile daily POS sales with books with the use of a solid outsourced platform.

    • Reconciliation

Reconcile the bank accounts, loans, credit cards, and so on. You need to be accountable for everything.

    • Audit

Evaluate the food safety, quality, and management control too. The audit in the food industry is relevant not only to the profit and loss but to the high standard of food quality too. 

Restaurant bookkeeping to-do list

  1. Utilize your Point-of-sale (POS) to record sales each day

You’ll need to start by learning how to keep track of your sales. Many people believe that outsourcing is a great approach to keeping track of everything for restaurants.

    • Count the number of sales you make every day.

Create a separate sales entry for each day (not monthly or weekly). This is how you simulate the cash and credit card deposits at the restaurant’s bank. The majority of restaurants accept credit cards and allow daily bill payments. As a result, each batch’s credit card payment or deposit will have an individual influence on your bank account.

In order to set up your restaurant accounting services to accurately reflect this activity, you must look at how money is received in your bank account.

    • Use the data you’ve acquired to create a sales report.

To keep track of your daily sales, you’ll need to put together a report. Most restaurant POS systems feature a daily sales overview. You’ll need to interact with your POS system if you want to modify the report to get more specific data.

    • Keep a daily sales journal.

After receiving a sales report, start a daily sales notebook entry and a memorized purchase. It may also be possible to gain insight into how things are performing financially by comparing profit and loss to previous quarters and years. Restaurant financial reporting can make the difference between success and failure.

  1. Benefit from accounting software

Whatever accounting software you choose, keep in mind that it needs to be customized, or at the very least, best suited for your company. As a result, you should be able to streamline data entry activities, personalize invoices, easily keep track of regular income and outgoings, and much more. Keep in mind that you should have access to your statements and data 24/7/365.

  1. Payroll

Making your own payroll increases your risk as a businessperson. If you record your payroll taxes incorrectly or late, you could incur significant fines and fees. You run a lot of dangers if you don’t outsource your payroll to an accounting company.

For assuring reliable and consistent pay and accounting, payroll outsourcing is a practical and cost-effective alternative. Payroll outsourcing for restaurants should be used by all small businesses.

Restaurant payroll preparation can be challenging due to inconsistent work schedules, numerous positions, and several payment types. The best way to automate the process is to outsource payroll or use payroll software.

  1. Make an accounting chart

The accounting system needs to be well organized as we move on to the next step. Why does this matter? You must create an accounting chart. You must list the assets, liabilities, expenses, income, and capital of the owner on the chart. Even if it is not restricted to those groups, it is advisable to start at the bottom and add more precise groups as you move up. This will enable you to assess the company’s cash flows.

You are running your business blindly if you don’t employ financial statements in your restaurant accounting services. It’s crucial to regularly analyze your financial statistics due to the food industry’s razor-thin profitability.

Let the Accounting Services Cook your Books!

The success of the catering business does not only rely on your passion, management, and taste of the food you serve but also on how well-managed your books are. Only then you will be able to expand and grow your food catering business if you can keep a close eye on the cash inflows and outflows.

CPA fees for small businesses will vary based on different factors but rest assured My Count Solutions is the perfect solution for sore eyes looking for a service provider who is ideal in bookkeeping and accounting services.

You can contact us and learn how My Count Solutions can help grow your catering business toward success.