Over the last few decades, the restaurant industry in Dubai has reached its heights. Dubai offers business in different industries, restaurants being one of the largest. As easy as it may seem, running a restaurant is not an easy task, to ensure a smooth restaurant business it is important that Accounting Services are considered for exploring new concepts and ensuring financial peace. Running a restaurant is not only about food, but it also comes with many financial responsibilities as well. There is a lot of competition in this industry which is why it is important to stay at the top of Accounting Services. It is important that you hire a set of professional teams that can offer top-class Accounting Services in Dubai. The major expenses of a restaurant to be considered are as follows:
- Cash Management
- Payroll
- Inventory
- Payable Accounts
- Reconciliation of Accounts
- Sales
Process of Accounting in a Restaurant:
There is a specific personalized process of accounting for restaurants. Many top accounting firms are offering their outsourced accounting services in Dubai. They are specifically based on the need for a restaurant. A basic process for this type of accounting is explained below. It beings with classifying different categories of accounts based on their need. The following are the main items that should be considered while preparing these accounts.
- Foodstuff: It includes the types of food, its expense and varieties.
- Revenues generated: These are the revenues generated from sales of different products.
- Occupation expense: The expense of the location, insurance, security and other maintenance costs.
- Expenses: These are the expenses of products other than food, like packaging etc.
- Labor Expenses: These include monthly salaries and increments, meals, discounts and health insurance for different employees.
- Operating Expenses: These expenses include costs of decor, uniforms, office supplies, penalties, poor debt etc.
Why is there a need for an Accounting Company for Restaurant operations?
Running a business in Dubai comes with a lot of responsibilities, it means that the financial aspects and legal aspects should be fulfilled so that the business runs smoothly. Hiring an accounting firm will ensure that all these requirements are taken care of according to the rules and regulations.
The two main services provided are Accounting and Bookkeeping Services and Business Advisory Services.
The Business Advisory Services includes:
- Cost of the goods: Including cost of food, beverages and other supplies.
- Prime cost: It is the cost on labor cost and the goods that are sold.
- Fixed Business costs: These are the rates that are used to run a business such as rent, insurance etc.
- Profit: It is the amount left once all the payments are cleared.
The Accounting and Bookkeeping Services includes:
- Preparing different categorical accounts for easy cash flow
- Choosing the correct management system for the business
- Selection of modern technology and accounting software for personalized data and record
- Providing with the top qualified bookkeeping experts to ensure the transactions are updated daily and records are maintained for the future
How to choose the best Accounting Firm in Dubai for your Restaurant?
A firm that provides all services under one roof is known to be the best. ebs Chartered Accountants is one of the best among many that provide Accounting Services for many restaurants in Dubai. The services being offered are outsourced bookkeeping services, advisory services, payroll, internal audit and external audit as well as VAT consultation and filings. All such services are an integral part of a restaurant business for it to run smoothly.
A success story of ebs Chartered Accountants:
As stated above, ebs provides the best accounting services in Dubai, they are working with many restaurants to overcome their accounting issues. Drip Burgers are one the famous Burger Restaurant in Dubai who are in partnership with ebs for their accounting services. ebs has helped them overcome their accounting challenges that were creating hurdles in their processing. One of the major parts of restaurant accounting is to look at the reporting of inventory in cost of goods being sold. Previously it was reported that Drip Burgers were facing challenges to report their inventory costs of goods, this challenge was taken care of by the qualified professional team of accounting at ebs. Along with this all-other accounting services like bookkeeping, advisory services, auditing and legal filings are being taken care of by the expert team at ebs.
If you are looking for a reliable team of accounting professionals for your restaurants in Dubai, we have got you covered, contact us to avail ourselves of our services to ensure a smooth business process.
FAQs
What is restaurant accounting?
Restaurant accounting is a broad term used for procedures involved in the management of financial records and businesses of restaurants. This includes everything from tracking revenue expenses to managing payroll and administrative expenses.
What is accountability in the food industry?
Restaurant accounting is a method of recording, analyzing, and interpreting financial information about a restaurant. The responsibilities of a restaurant accountant generally consist of tasks such as cost benefit analysis and keeping the track record of finances etc.
What is an accountant’s responsibility in a restaurant?
They have a deep understanding of accounting principles and tax law. Their Responsibilities include financial analysis, tax planning, budgeting, forecasting, financial reporting, and strategic investment decision making.