Owning and operating a restaurant in Singapore is undoubtedly highly lucrative and advantageous. Moreover, restaurant ownership may lead to higher incomes than you can make by pursuing other business ventures.
Being a restaurant owner, however, comes with a variety of responsibilities, including business administration, customer service, marketing, financial planning and management, and bookkeeping. Each position is just as important as the next.
Because of this, you may want to consider outsourcing your accounting services to a respectable, well-established accounting business in Singapore.
This will be a wise decision if you wish to lessen your accounting responsibilities. You’ll receive high-quality and competent financial consultation, guidance, yearly compilation services, and solutions to provide you with the utmost peace of mind.
The Significance of Accounting Services in the Singapore Market
It’s been suggested that a Singapore company’s books contain the key to successful management. So that you may outsource your accounting needs to your own benefit, it is crucial to engage a qualified team of accountants.
Accountants in Singapore are increasing in numbers to meet the growing demand for high-quality accounting services, and they are dedicated to helping you. By organising your banking data, records, and books for you, these accountants aim to help your firm save time, money, and resources.
Accounting software like Xero, which has been created with your company’s exact needs and specifications in mind, will be provided to you.
Accountants in Singapore are aware of the genuine difficulties experienced by business owners concerning data input, bookkeeping, yearly audits, financial statements, and other necessary disclosures.
Why Should You Choose a Reputable Singaporean Accounting Company to Handle Your Restaurant’s Accounting Needs?
To be able to reduce your workload, let the professionals do the work, and have them watch over your funds, you must first outsource your accounting work to a well-known and trustworthy accounting business in Singapore.
Given that they have a profound grasp of accounting techniques and all other associated skills, business owners like you can now choose to outsource bookkeeping services to these experts.
It would be best if you go for outsourcing, and the reasons are as follows:
You may conserve additional time that you can use for other worthwhile business-related tasks and endeavours, such as enhancing goods and services, boosting sales, and maintaining an edge over rivals.
Reduction in Operational Expenses
By outsourcing, you can take advantage of services that come at a lower cost without worrying about maintaining pricey accounting software or employing full-time staff to handle the work.
You can bet on accurate and on-time financial reporting if you outsource bookkeeping services for your restaurant’s accounting requirements.
Always Make Sure Your Clients are Completely Satisfied
Let the experts take care of your restaurant’s accounting requirements. It would be best to first acknowledge that managing a restaurant’s finances may be challenging.
If you need help figuring out what to do, you will run in circles, and getting where you’re going will be difficult.
Let the professionals manage the accounting demands of your Singapore restaurant business to avoid this calamity. A skilled accounting firm can complete the task more quickly and with less effort.
All business owners, including restaurant owners, must adhere to the Singapore Financial Reporting Standards (SFRS). This implies that they must devote time and energy to the following:
- Account balancing
- Keeping of journals
- Documenting sales made using debit or credit cards, cash, and keeping purchase invoices.
- Filing corporate tax and GST with IRAS
- Doing clerical tasks, including calculating CPF and paying salary
- Meeting timelines for various Singapore regulatory authorities.
Employ a Singapore Accounting Firm to Assist You with Ongoing Financial Transaction Updates for Your Restaurant
Owners of businesses don’t make money from menial administrative activities. On the contrary, these only take up their time, which is just what they need to increase the calibre of their goods and services.
Once you have started your restaurant business in Singapore, a wise course of action is to hire a reputable accounting firm with qualified accountants. This is all the more so because, in Singapore, it is required that you update your company’s financial records regularly.
Qualified accountants know how to use cloud accounting software to process your company’s financial information and assess its financial condition in general. This is among the main justifications for hiring the best accounting firm for your business.
Accountants may help you with a variety of different responsibilities in addition to providing yearly compilation services, including:
- Keeping track of online transactions
- Sorting and keeping checks and invoices.
- Filing of bills and invoices are filed
- Financial balancing
- Creating accounts payable reports, balance sheets, profit and loss statements, and cash flow statements
- Yearly tax filing
- Preserving vendor accounts and payment information
- Adherence to SRFS, rules, and regulations
Significant Restaurant Accounting Metrics
The entire cost of running your restaurant is a significant aspect in determining the financial stability of your company.
Although the volume of business your restaurant generates is essential to its success, how much you spend compared to that volume of business determines your real profitability.
Your spending may be tracked and divided into several areas using restaurant accounting.
Cost of Goods Sold (COGS)
COGS stands for the overall costs and expenses incurred during the manufacture of items in a firm. It is the total cost for each of the ingredients used to prepare the food and beverage products over a given time period for a restaurant.
By deducting last week’s inventory from the previous week’s inventory, you can quickly compute the COGS for the week. You can adjust the price of your food items by accurately tracking the COGS.
The profit you wish to generate on each plate may be successfully determined once you have a firm understanding of the price of your goods.
Anything else about your restaurant’s regular business operations falls under this area. This covers everything like flatware, marketing expenses, maintenance fees for equipment, and advertising expenses.
The largest obstacles to running a restaurant, according to 52% of American restaurant operators, are food and operating costs.
But, you may be able to make better investment decisions and reduce your expenditures after you obtain a detailed breakdown of all the prices associated with the various categories.
All of the expenses and wages associated with your restaurant’s staff are included in the labour costs. This applies to everyone who works for you, including your chefs, waiters, servers, and other employees. Payroll taxes and perks should also be included in the cost of labour.
Totalling all of your restaurant’s location-related expenditures will give you your occupancy costs. This covers the rent, property taxes, insurance, and other utilities. The expenditures associated with tenancy are fixed expenses, so keep that in mind because, as a result, cutting these costs will not boost your earnings.
Other Services an Accountant May Provide for You and Your Firm
The range of services provided by certified and skilled accountants is vast, and if you choose to outsource, you may take advantage of all these services:
Restaurant Accounting and Bookkeeping
You may update your company’s books with the aid of accountants. You should commit to a reliable, skilled accountant who can handle your bookkeeping and also offer annual compilation services.
Prepare Sales Reports
Accounting companies are able to create sales reports. This will give you and other restaurant owners an idea of what’s successful for their industry. However, to eliminate all the guessing requires the creation of an accurate and thorough sales report. You can then receive specific information that you may utilise to develop your company.
Reconciling with Banks
Every company has to monitor its cash flow carefully. Accountants do this by carefully documenting all the financial transactions in restaurants and balancing their books. They then compare the company’s accounting books with the bank statements to ensure there is no discrepancy. But, in case there is some difference between the two, this process helps the accountants take quick action and rectify the same. This would ensure you always have the correct picture of your financials and don’t overspend.
Preparing Accounts Payable
By creating accounts payable reports, accounting services may assist you in managing your company’s cash flow. This is essential for ensuring that payments for the company’s obligations are made as scheduled.
Tips on Accounting for Restaurant Owners
Keeping track of the sources of income and maybe the costs are really important for you as the restaurant owner. You indeed need to keep a watch on all of your operations-related expenses, including those for buying ingredients, food waste, and restaurant promotion.
As an owner of a restaurant, accounting is one of your most important responsibilities and something you must perform correctly. You should also be serving as the restaurant’s accountant, particularly if the enterprise has just been formed. Therefore, before the numbers confuse you, you must acquire the skills to have control over them.
When choosing the food and related products you’ll need, as well as deciding on your restaurant’s positioning in the market, you will want to seek suppliers who can offer a consistent supply at a fair price.
The restaurant business is heavily reliant on numbers, much like other sectors of the economy. Revenue, store rental, staffing costs, and food prices all have a direct link to crucial metrics that require constant monitoring. You must make sure that you perform well as an accountant if you want your restaurant business to prosper.
You can hire personnel to help you with that later on in your business venture, but you still have to deal with the figures yourself. That’s because you cannot avoid dealing with your financial data since if you do not have access to it, you might not be able to grasp your company’s status adequately.
The previous day’s events need to be reviewed. To present a clear image of the items sold, the restaurant’s profits, whether they be from food or drinks, must be appropriately assigned to the correct divisions. Ideally, you should also make a distinction between the sales revenues and the GST collected.
This is significant to you as the representative collecting GST for the Singapore Government. You must separate the receipts into groups based on the various payment methods, such as credit card proceeds and cash proceeds. It follows that daily records must be kept of everything, no matter how small it might be.
Keeping Your Accounting Records Organized in Singapore
If you don’t use a methodical strategy, organising your accounting data might take a while. You’ll be able to save a ton of time while maintaining your accounting records and have a better insight into the operation of your business by going about it methodically.
Also, it makes it easier to pay workers on time, file tax returns, and monitor company activities with peace of mind.
You may appropriately manage your accounting records with the help of the following five tips:
Split the Accounts for Payables and Receivables
By keeping separate records for both receivable and payable transactions, you’ll be able to obtain a sense of how much your customers have already paid, and how far behind the overall payment is.
This will guarantee that there are no missed payments and that your cash flow remains steady. Payable accounts, on the other hand, guarantee that you are keeping up with supplier payments.
Refrain from Paying with Cash
Apart from minor items, it is best to avoid making any payments in cash for your business finances. To make it simpler for you to manage your finances and records, you should utilise credit cards instead of cash for any necessary business transactions.
The process of keeping track of costs paid with cash may be quite time-consuming and complicated. Despite this, you still need to record these payments.
Every transaction is important, and skipping any might hurt the company’s bottom line. Where necessary, don’t forget to quickly refund the customer, using an expenditure form to prevent any uncertainty regarding taxes or commercial transactions down the road.
It is preferable to leave bookkeeping to the experts because it may be a taxing chore. It is a challenging undertaking, and you must closely monitor every financial transaction involving your company.
To make sure your accounting records are handled correctly, you should search for a qualified expert in Singapore who offers accounting services.
Have Separate Accounts for Business and Personal Use
Your work and personal accounts should always be kept separate to prevent any form of misunderstanding regarding your business funds.
You may then see your tax-deductible business costs more clearly. You should also keep your accounts and overdrafts distinct from your credit cards and overdrafts.
Nonetheless, even if the expenditure is minor, you should avoid using corporate funds for your personal activities. Over time, this will have an impact on your company. Make an effort to keep your personal and work accounts distinct.
How to Choose the Perfect Restaurant Accounting Software?
Each restaurant business must have the proper restaurant accounting software to maintain bookkeeping accuracy, obtain data from the system, and meet all accounting requirements. By taking the following aspects into account, you may select the best software for your company.
Most accounting software requires a monthly membership cost. Think about the software features you desire and the cost per month that you are prepared to pay. Make a decision according to your knowledge.
Select accounting software that is tailored to your specific requirements. Before making a final decision on your accounting software, consider aspects like operational and reporting requirements as well as the overall size of your organisation.
Preferably choose accounting software that is simple to combine with other management software and promotes data exchange. Ensure that your program is compatible with the majority of devices you are using.
In Singapore, operating a restaurant without ever performing accounting or creating accounting information is like running a marathon wearing blinders.
A reputable accounting firm may complete it quickly and with less effort. Known eateries can publish their prices. For the majority of people, profit margins are modest. This implies that they should manage their finances with even greater caution.
Accounting firms can evaluate the data and provide sales versus the cost of goods or sales versus labour cost reports for their clients. Such detailed reporting can help restaurants keep their costs far lower than their revenue.
Getting direct input from customers is essential while running a restaurant. Every restaurant must uphold quality and also offer fast service. Restaurant entrepreneurs who are successful are those able to concentrate on these areas.
By using a seasoned accounting firm and delegating the restaurant’s accounting requirements to its professionals, you can find more time to deal with the more important things.