Bookkeeping Services for Hospitality Industries
Bookkeeping is a crucial aspect of running a successful pub. As a pub owner, you have many responsibilities, including operations management, staff management, customer service, financial management, marketing, and inventory control. Pub owners need to be proactive, organized, and focused on delivering great customer experiences while ensuring profitability.
It can be challenging to keep track of your finances while juggling all of these tasks, particularly during busy periods such as New Year’s Eve. However, neglecting bookkeeping can lead to numerous problems, including an inability to track income and expenses, not knowing how much you owe suppliers, and overpaying or underpaying your taxes.
How to keep up with Pub’s Finance
To avoid these issues, it’s essential to establish a reliable system for bookkeeping. Here are some best practices to follow:
- Keep Sales and Purchase Records
Pubs often have live entertainment and cash transactions, which can make it challenging to track sales and purchases. Ensure you issue receipts or generate invoices when making cash payments and take signatures on them. This will help you maintain accurate records and have evidence in case of a tax audit. Record your cash transactions carefully, and avoid using cash when possible. Accounting software like Xero or QuickBooks can help you manage cash transactions and maintain records of your sales and purchases.
- Segregate Dry Sales from Wet Sales
Separate your dry sales (food) from wet sales (drinks) in your tills. This will give you a clear picture of your sales figures and help you keep track of your financial statement. Extracting sales figures from your till machine regularly will help you stay on top of your cash flow and make informed business decisions.
- Ensure Your Employees Are on Payroll
Whether you employ temporary or full-time staff, it’s essential to enroll all your employees on the payroll system. If you don’t have the resources to manage payroll in-house, you can use accounting software that allows you to run payroll smoothly and have complete control over it. Since pubs can have a high turnover of staff, it’s essential to keep accurate records of your employees and their payroll information.
- Keep Separate Records for Private and Business Expenses
Maintain separate records for private and business expenses to avoid confusion and ensure accurate bookkeeping. If you live within the pub and require utilities and food to manage your day-to-day life, these expenses should be accounted for separately and not included in your business account. It’s also important to maintain separate bank accounts for your private and business expenses to make sure your financial records are accurate and up to date.
In Conclusion
By following these best practices for bookkeeping, you can maintain accurate financial records, stay on top of your cash flow, and make informed business decisions. If you need help managing your bookkeeping or payroll, consider seeking the services of a professional bookkeeper, like Penny’s Bookkeeping Services, who can provide insightful advice and services on managing your finances.