What Restaurant Profit and Loss Statement Mean?
Every restaurant business operates by having funds for its various tasks. Investment for such works is essential, and the owners do spend their time, capital, and strength to build it. After every business session, when the total collected restaurant revenue is higher than the investment, you have profited. On the contrary, if you have not covered even the amount you invested, your restaurant is in a loss. Thus to check and record all these happenings in detail, a financial statement is necessary. Such a report covers all the details minutely on how and where the business profited or lost.
What a Restaurant Profit and Loss Statement Includes?
Restaurant finance statement includes every single payment done or received in detail for summing up the profit and loss at the end. This sort of document records everything with minute detail. We have specified the components of such a statement in the following points:
Total Revenue Generated
In this category, accountants record all the items sold in the restaurant in its original amount. Many restaurants earn by selling food and beverages, but there are also some that retail and have other sources for obtaining. Thus when you are making it, do not miss out on any capital sources.
Restaurant Items Sold
In this category, you should account for the restaurant food or beverage and other items separately to consider in detail. It would also let you know which items in your restaurant are mostly liked by the customers.
Other Brand Business ventures
Include all the sales done on your brand's merchandised items. It includes gift cards, mugs, hats, etc. on which the brand name is pasted. Selling such products is a way of brand promotion.
Cost of Goods Sold (COGS)
COGS refers to the total costing and funds invested in the food, ingredients required to make those food items, and other things. It is a crucial aspect of the accounting process as you need to deduct its total amount from the total revenue to calculate the total profit.
Restaurant Labor Costs
Paying the employees, staff members, and other labors is also an expense and must be in your statement. This total cost will also get subtracted from the total revenue amount.
Restaurant Operation Expenses
Keep note of every penny spent in restaurant operations and state it on the statement sheet. It includes tablecloths, rents, lease amount, etc.
When running a business, insurance becomes an important aspect. It costs many dollars, thus including it separately in the statement sheet is smart action.
Sum the Prime Cost
Prime cost refers to the total amount of all the revenues collected at your restaurant. It sums all the food, beverages, and other sellable components' prices together.
Calculate the Net Profit / Loss
Once You have summed all the revenue and expenses, its time to calculate the net profit and loss. To figure it, you have to subtract all the expenses, liability, and COGS amount from the prime cost.
If you choose Template.net, you no need to be bothered with such tasks and its stress. We have kept all ready-made for you. From accounting to management, we cater to all sorts of restaurant templates to you. If you can't believe, have a tour of our page and explore our services.