As a café operator, you are playing the role of monitoring the income sources and possibly the expenditures. Indeed, that includes all the cost of sales such as the food-wasting, ingredient purchases, café marketing expenses.
Accounting is among one of the most crucial jobs that you need to manage well as a café operator. At the same time, you need to be the café’s accountant; particularly in the early stage of the business. You should take control of your numbers before the numbers bewilder you.
When you made up your mind on the market positioning and the food and ingredients you need, you want to source for distributors that can provide steady supplies at a reasonable price. Avoid choosing distributors solely base on the price. If you are advanced enough to maintain an inventory control system (Also see Accounting for Manufacturing Setup Vs Other Industries), you want to make sure your distributor able to deliver within the pre-agreed lead time.
The café operation, similar to other industries, rely heavily on numbers. Income (Also see How to Determine Revenue), premise rental, staff costs, food prices, has a lot to do with numbers that you need to track them regularly. If you want to be successful in your café business, you want to make sure you play the accountant role well.
At a later stage of your business venture, you can get an employee to help you with that, but you certainly still need to deal with the numbers. Unfortunately, you cannot avoid getting involved with your financial numbers, or you may lose sight when you do not have them on your fingertips. Therefore, you must put in some efforts to do some research on the point-of-sale system along with your cash flow statement. These will help in gaining an insight into the key item in the Profit and Loss and sales projections.
It requires the utmost persistence to be a good accountant (Also see Ways to Foster a Strong Accounting Team in Your Organisation). You need to check the daily proceeds at the beginning or end of the day. Additionally, you need to evaluate what took place the previous day. The café revenue, be it the food or drink, has to be appropriately classified to the respective category so to offer a clear picture of the selling products. You most likely also need to distinguish the SST collected from the sales proceeds. This is vital since you are a tax agent for the Malaysia government. You need to split out the receipts based on various mode of payment, for example, cash proceeds and credit card proceeds. In other words, every little thing that takes place needs to be documented daily.
In addition to that, you need to track all the staff cost monthly. With that, you will be able to get an idea of the average staff cost. Next, you need to process the payment for invoices your café received now and then and document whether they were spent for what purpose.
The accounting function is an essential component in the success and the expansion of your café. Whether you do it in-house or outsource the function, proper accounting is one component your café cannot live without. If you have difficulty doing it on your own, engage an accounting firm in Johor Bahru to help you with the troublesome tasks.