Introduction
The restaurant and cafe industry in Australia is a vibrant and dynamic sector, with thousands of new establishments opening each year. As these businesses strive to deliver exceptional culinary experiences, there’s an equally important aspect running behind the scenes – bookkeeping.
This article explores the crucial role of bookkeeping in restaurants and cafes, the costs involved, the preferred accounting methods, and the financial health of the industry.
1. A Snapshot of Australia’s Restaurant and Cafe Industries
Australia boasts a thriving restaurant industry with over 36,149 restaurant businesses operating as of 2024 (1). The industry’s market size is around 2-6% globally (2), with an average turnover between AUD$200,000 and $2,000,000 (3).
The cafe industry in Australia is equally robust, with more than 50,000 cafes in operation at the end of the financial year 2022.
2. The Role of Bookkeeping in Restaurants and Cafes
Bookkeepers play a pivotal role in maintaining the financial health of restaurants and cafes. They meticulously record and organise financial transactions, such as sales, expenses, and payroll. This tracking enables business owners to better understand their revenue streams and cost structures.
Restaurants and Cafe’s operate in a highly competitive market. Often, those who can find cost savings or manage their finances better than their competitors will gain an important upper hand and maintain their financial viability and maximise their success.
Having a knowledgeable, efficient and low-cost Bookkeeper can go a long way to helping restaurant and cafe operators achieve their competitive edge.
3. Should Restaurants and Cafes Use a Bookkeeper?
The answer is a resounding yes (4,5,6,7). Bookkeeping is a critical part of business, and accurate and timely bookkeeping forms the foundation for useful financial reporting. Rather than trying to handle the books yourself or hiring someone to work internally, it’s recommended to get an outside bookkeeper.
Outsourced bookkeepers have flexible arrangements so they can generally work as much or as little as is needed. As a result, provided you choose a bookkeeper for your restaurant or cafe that is reasonably priced, the benefits of their work will far exceed their cost. They should also be experienced in the restaurant or cafe industry as they will then have valuable insights into your business that could help you improve.
4. The Cost of Restaurant and Cafe Bookkeeping in Australia
The cost of employing a bookkeeper in Australia is greatly impacted not only by the amount of work that needs to be done but also by the level of experience that the bookkeeper possesses. In Australia, bookkeeping services can typically range from $30 to $80 per hour (8). However, if you need a bookkeeper for a complex consultation, you may pay several hundred dollars per hour (9).
Restaurants & Cafe’s should try to balance the cost of a bookkeeper with their skills and experience. As mentioned earlier, any savings that can be found can lead to a competitive edge and also increase the profits remaining for the owners.
5. The Importance of Keeping Operating Costs Down in a Restaurant or Cafe
Understanding operating costs is critical for the success and sustainability of a restaurant or cafe (10,11). Operating costs in a restaurant can be divided into various categories, including fixed, variable, and semi-variable costs (10,11). Efficient management of these operating costs is essential for restaurants to maintain competitiveness and profitability (10,11,12,13,14).
A good bookkeeper will categorise and monitor all expenses and be able to provide suggestions for improvements or flag potential issues that you may be unaware of as owners. Bookkeepers can also help with payroll duties and ensure the staff you hire are paid appropriately, accurately and on time. Often, the bookkeeper can simplify processes and take pressure off the owners who can focus their attention on more value-added activities for the business.
6. Conclusion
Understanding the financial landscape of the restaurant and cafe industry is crucial for success. With the right bookkeeping practices and a keen eye on industry trends, restaurant and cafe owners can navigate the challenges of the industry and steer their businesses towards profitability.
7. About Us
International Outsourcing Group provides outsourced remote Bookkeeping, Marketing & Administration Services to businesses all across Australia.
Our Bookkeeping Services are perfect for small businesses such as restaurants and cafes. You can select the number of hours of bookkeeping you need from as little as 2 hours a week.
All of the work done by our team members is managed and reviewed by our Chartered Accountant Managers so you can be sure you will receive top quality bookkeeping services.
Consider using us for your restaurant or cafe bookkeeping needs.
For more information, visit our website internationaloutsourcinggroup.com to obtain your quote.
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