As 2017 nears, it may be time to start reconciling your pizzeria’s accounting records

You need to make sure you have an accurate picture of your current finances so you can better gauge the impact of new laws under a new president.



 

Q How do I reconcile myself and my business to any new changes under a new president?

 

A With a new president in office and the changes in Washington, we should anticipate changes to the tax code to pay for new programs, if any, that get implemented. Whether or not your party won the White House this year, you will need to become reconciled to this new reality—and its effect on your operations—while it lasts. And reconciliation starts with your accounting.

In my world, we reconcile our bank accounts to bank statements; our credit card balances to credit card statements; our sales tax balances to our state taxing agency’s records; and our payroll tax liabilities to IRS records. In other words, your restaurant operation’s accounting records need to agree with all these independent records. Working with your accountant to reconcile these records gives you a snapshot of your operational profit/loss at the date you made the effort to reconcile. It also gives you a comparison between periods of time, such as day-to-day, month-to-month or year-over-year.

You should ensure that all of your accounting records are reconciled through November and before year-end as quickly as possible. This will give you a picture of how current laws affect your operation’s profitability; then, if those laws change, you can better gauge their impact on your business. In addition, the new federal rule covering overtime pay means the minimum weekly salary threshold under which employees are eligible for overtime pay increased to $913 per week on December 1, thus potentially affecting your operational profit and tax obligations.

Too many restaurateurs fall into a holiday-season mentality: They’re slammed with extra business, catering and parties, employees keep calling in sick, and their back office starts bleeding money. Your pizzeria may be generating extra cash flow and seem overly busy, but if all of your accounts are not reconciled, that important activity from November to December will not be accurately measured.

Reconcile your internal records first. Next, reconcile your financial operations to the proposed business or tax law changes being introduced into our economy. Finally, create lemonade out of lemons by reconciling your employees and customers to any changes you must make, such as price increases or employee scheduling.

 

Edit Module

Tell us what you think at or email.

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags

Related Articles

The Chef's Corner: Will Grant Interview

Will Grant chats with PMQ about restaurant concepts, sourdough pizza, and winning the Caputo Cup.

What’s Your Story? Papa’s Pizza

In the aftermath of Hurricane Maria, Wilhelm Rodriguez, owner of Papa’s Pizza in Cabo Rojo, Puerto Rico, proved that pizza can move mountains.

The Upper Crust: How Anita and Klime Kovaceski became one of Miami’s culinary power couples

The talented owners of Crust have made pizza success look effortless, but they know the devil is in the details.

Top Marketing Tips and Tricks for April 2018

Ring in the spring by giving your pizzeria a seasonal refresh.

How to Drive More Traffic to a Newer Pizza Store

The first three years in business are usually bumpy for a pizzeria, Think Tankers say, but as long as your sales keep going up, don’t push the panic button.

The Three Common Causes of Soggy Pizza

If your pizza crust won’t stay crispy after it’s baked, keep these tips in mind to better control moisture.

Food Trucks: All the Right Moves

Mobile pizza restaurants present their own unique set of challenges—and there are no shortcuts to success.

No Monkey Business: Service, Quality and Best Prices from King Kong Printing

Connecting to customers through direct mail helps you stand out in a digital world and offers a more personal touch.

Mobile Brick Oven Solutions: Expanding Your Pizza Operation

Marra Forni pizza ovens offer both performance and elegance for your food truck or mobile restaurant.

Is Your Online Customer Service Up to Speed?

Never has the need for speed been more important than in online ordering for pizza restaurants. Speedline has the solution.
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags