How to Create a Restaurant Budget in Google Docs
According to the Simple Dollar, goals are unattainable if you don’t have a spending plan. If you have goals for your restaurant, be sure to create a budget. Below is a list of tips and guidelines to help you in creating a budget for your business in Google Docs.
1. Set a Budget Goal
Restaurants create a budget plan in order to achieve certain goals. These include but are not limited to opening expansions, adding menu items, and making renovations. Because these goals involve money, budgeting is a must for the restaurant to generate the needed resources.
2. Determine the Restaurant’s Sources of Income
Other than the sales and revenue gained from customers and diners, what are the other sources of income for the establishment? Are you generating income capital gains, royalties, or donations? Apart from determining the sources, it’s best that you also have an idea of much you’re earning from them each time.
3. Identify the Restaurant’s Fixed and Periodic Expenses
Aside from the sources of income, you should also identify the restaurant's expenses. Create a list of these expenses and make sure to organize them according to types. For more details about the different types of expenses, scroll down to our FAQ section below.
4. Set Aside an Amount for Emergency Purposes
One benefit of budget planning is having enough cash despite unforeseen circumstances. When creating your budget, set aside a section intended for emergency funds. For the amount, you may follow the 50/30/20 rule, but it’s best that you discuss it with the restaurant’s management team.
5. Keep the Budget Realistic
You’re more likely to follow a plan religiously if it’s achievable and realistic. Of course, how would you be motivated to follow something that’s too overwhelming? For your business budget, keep it realistic and practical not only for you but also for the rest of the restaurant employees.
What is a restaurant budget?
A restaurant budget is a document that forecasts the possible income earned and expenses spent by the restaurant over a specific period. Aside from simply focusing on the cash flow, it can also be used to compare with the restaurant’s actual income and expenses.
Why is budgeting important?
- Budgeting enables you to have full control over your expenses.
- Budgeting helps you determine if you’re on the right track towards your goals.
- Budgeting keeps you away from having debts.
- Budgeting allows you to prepare yourself for unforeseen events.
What are the different types of budgeting?
- Zero-based budgeting.
- 50/30/20 budgeting.
- The “no budget” budgeting.
- 60% budgeting.
- Envelope or cash-only budgeting.
How can budgeting help businesses?
- Budgeting increases the likelihood of attracting investors and business partners.
- Budgeting helps in determining the amount for the compensation of employees.
- Budgeting allows you to easily prepare for taxes.
What happens if you dont budget?
- Not having a budget increases your chances of getting into debt.
- Lack of a budget plan will make it hard for you to keep track of your finances.
- Not budgeting means poor cash flow and more wasted money.