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When in financial difficulty what's the best way to sort things out? |
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Written by Bacall & Conniff Tuesday, 17 July 2007 16:48
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Running a restaurant is difficult under the best of circumstances. Too often the planning has not been done up front and so often financial pressures build due to under-capitalization. The most significant step that a restaurateur can take for himself/herself is to make allowances so that if the operation does not perform as well as the planned forecast, there is sufficient financial capital to weather the storm. Assuming that the financial records are in good order and the restaurant is receiving meaningful financial statements, it should be easy to pinpoint the problems so that a focus may be put into areas that need correcting. For example, comparing the original business plan, if it was done in a detailed format, to the financial statements being produced should allow the restaurateur to determine what is going off track.
In other words, if the proper planning is done, it takes time for financial pressure to build to the point of being a problem; timely financial statements would usually highlight problems that have arisen so that corrective action may be taken before pressure has reached a problematic level.
The information given is provided for general, non-specific educational purposes only, and should not be relied upon as advice relating to your specific circumstances. For company-specific advice, consult directly with your tax advisor.
James Conniff is the Managing Partner at Bacall & Conniff, P.C., a full service CPA firm that provides industry specific accounting solutions for restaurateurs. Their services include: Weekly flash reports, Monthly financial statements, Web-accounting, Optional bookkeeping & payroll services, and Comprehensive tax & advisory services. They can be reached at 617-367-3250.
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Last Updated ( Thursday, 27 March 2008 16:58 )
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Finance 
