Every business transaction is recorded in the General Journal. The General Journal is called the book of original entry. A journal is a chronological record of transactions, in order of date. Each entry is called a journal entry. And each represents a different business transaction. Further, each transaction is recorded once, and only once. This is probably all Greek to the average restaurant or business owner. For that reason you will want to see professional accounting and bookkeeping for restaurants.
All journal entries follow the rules of debit and credit. In fact, these are the very basics in bookkeeping and accounting. Effective and efficient bookkeeping requires the basic understanding of these principles. However, the better bookkeepers have a broad knowledge of these concepts. And this is only derived from experience. Needless to say, this is more than simply a matter of posting check and deposit transactions.
Survival of the Fittest
Controlling costs is what makes the difference as to whether a restaurant survives, or not. And the inability to control labor, food, liquor, beer and wine costs is a sure recipe for failure. The only true measure for determining accurate costs, is accurate bookkeeping and accounting. While the bookkeeping is the first line of defense, our CPAs cannot discount the importance of the final accounting in this venture.
Don’t get caught up too much in the cost of accounting services. Because you can be a penny wise, and a pound foolish. Business & Financial Solutions is a full-charge bookkeeping service, with the accounting and CPA infrastructure built into the company. All the bookkeeping, accounting and tax needs may be provided under the same roof. And our firm is open year-round. So we don’t close after the end of tax season. Our accountants have extensive experience and knowledge in hospitality bookkeeping, accounting and hospitality management.