Hi All, I wanted to share a conversation I had with my client about classifying certain items as either capital expenditures (CAPEX) or operational expenses (OPEX). We discussed whether items like cutlery, plates, glasses, cups, tablecloths, trays, menu holders, and tables should be categorized as CAPEX or OPEX. The client believed they should all be considered CAPEX since they last over a year. However, I replied that you are 100% correct that they do have a lifespan beyond one year, but their cost is minimal and doesn’t significantly impact the P&L. So, I suggest that these items are low-cost and can be easily replaced; they are more suitable to classify as OPEX. On the other hand, tables, due to their higher cost, can be classified as CAPEX. What do you think?

Hey everyone, I hope you’re all having a fantastic week! I wanted to share another quick tip that could make a difference to your restaurant. Keep an eye on your food cost percentage. By regularly tracking your food costs as a percent of sales, you can spot trends and knows when potential issues may arise. Use the industry standard to keep your food costs in a profitable range, normally between 28-35%. If your food costs are rising, it could be time to revisit your menu pricing or call your suppliers and negotiate prices. By staying on top of your food costs, you will be able to have better profit margins and keep the restaurant financially healthy. By staying on top of this, you’ll be able to maintain healthier profit margins and keep your restaurant financially strong.

Hey everyone, I hope you’re all doing well! I wanted to share a quick tip that’s been really helpful for managing the financial side of running a restaurant. It’s all about regularly reviewing and reconciling your accounts. Sure, daily bank reconciliations are great for keeping things up-to-date, but taking the time to do a thorough reconciliation at the end of each month is crucial for closing your books accurately. This helps catch any discrepancies and ensures your financial data is accurate and complete. By making this a habit, you’ll have better insights into your finances, which can make budgeting and decision-making a lot easier.

Hey everyone! As restaurant owners, it's crucial to have a clear understanding of your financial health. A quick tip to streamline your financial reporting is to categorize your expenses consistently. Break down your costs into key categories like food, labor, rent, and utilities. This not only helps in identifying areas where you can cut costs but also provides insights into your restaurant's profitability over time. By consistently categorizing and reviewing these expenses, you can make more informed decisions that drive your business forward.

Hey Everyone, I'm Vijay, the founder of Tipnol Bookkeeping. We specialize in providing accounting and bookkeeping services tailored to restaurants. I joined this community to connect with restaurant owners and share insights on how effective financial management can help grow your business. I'm here to learn from other members and contribute my knowledge in bookkeeping, especially in the restaurant industry. If you think I can add value to your business, feel free to reach out—I’m looking forward to connecting with you all! Let us be a backbone of your growth. You can find us on: Website: https://www.tipnolbookkeeping.com LinkedIn: https://www.linkedin.com/company/tipnolbookkeeping