We produce hospitality management accounts for clients in Dublin, London and Amsterdam and Belfast. Hotels, Bars, restaurants and cafes have been a integral part of our business’ focus since Baxterworld’s conception over 30 years ago.
This gives us a wealth of experience in the nuances specific to food and beverage service. Which we can pass on to you, our customer.
Monthly or quarterly management accounts are essential for the hospitality industry
As hospitality accountants we have seen many scenarios that cause businesses to soar or struggle. What we know from this is that the key to succeeding through difficult times is to recognise warning signs and be proactive. This is exactly what managements accounts are for; highlighting the Key Performance Indicators (KPIs) and helping you to hone in on the source of the problems or to exploit your successes.
The two most important indicators are:
Gross Profit %age
Normally shown separately for food and beverage, this KPI shows the combined effect of these crucial profitability factors:
- Menu Prices
How do your prices compare with competitors? Price volume considerations?
Are you getting the volume you need to cover the loss?
3. Purchasing success
Can you get deals, change suppliers or tweak recipes
4. The mix of high and low margin items
Promote high margin items, e.g. tea and coffee, pasta dishes
Food leftover policy, mistakes, cleaning beer pipes etc
6. Pilferage of materials or cash
Unauthorised staff consumption, till fraud, CCTV reviewing
Wage Cost %age
Wage cost as a percentage of turnover can highlight management and rota problems. Usually shown separately for different areas, e.g. kitchen/wait staff. When compared with other venues or industry standards the following issues are highlighted:
1. Having too many staff in quiet periods.
2. Staff unable to cope in busy periods, requiring extra hands/training
3. Chefs or managers salary relative to performance
Hotels can use many measurements to inform profitability. Examples are Occupancy %age, Breakeven Point, Breakfast cost per guest, Average revenue per bed night, Revenue as %age, Rack rates, Marginal cost per room night etc.
I need this service
Maybe you have a management accountant but you don’t feel like they’ve helped you analyse your accounts in a useful way. Maybe you’ve been doing the books yourself up to this point and you want the support and insight that our service provides.
We are happy to talk through the services we can provide you. Whether it’s producing quarterly accounts or fully outsourcing your payroll and bookkeeping. Just get in touch and we’ll see what suits you best.
Fixed Monthly Price
We agree on the support that you want up front and deliver a service that you can depend on… including the price.
We love finding new software that saves everyone time. If you use POS systems, CMS, time management or stock control software, we’ll talk to the developer to see if they’ll support integration with your accounts package.
This makes your reports more accurate, quicker to produce and involves less back and forth with your managers.
Baxterworld’s CEO Ray Baxter, spent his early working life in the food and hospitality sector at FD level. Then, in an entrepreneurial phase, created a number of new bakeries, coffee shops and restaurants.
Director, Catherine McRory, started her working life running a family Bistro before going on to gain her Accountancy qualifications.
In fact, the majority of our team has worked in the hospitality industry at some point in their careers before joining us!
Like What You Hear?
If you think we can help, why not give us a call? There are no commitments if you decide you would like to arrange a meeting.
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