13 Very Good Hospo Finance Tips from Hospo Finance Experts
Prepare for the 20/21 tax season, and just general money stuff, with some expert advice from the best in the biz – Buffet client and hospitality finance experts Cafe Bookkeepers.By Molly and Cafe Bookkeepers
Here in the Buffice you can throw us a brief and we’ll give you 439673592 solutions. The ideal suggestion for a rent ratio? Not our area of expertise. If you didn’t know, hospitality-specific financial advisers and specialists are a thing and we couldn’t recommend them enough. To prepare ourselves for the most wonderful time of the year (after quite a tough 2020 for our industry), as well as get down with an Adult Person Up-Skill, we checked in with our fave accountants and bookkeeping client Cafe Bookkeepers for some red-hot tipsssss relating to money stuff, hospo and running a biz well.
💵 Get rid of cash, folks. Activating dynamic surcharging with software like Tyro is great for mitigating this “issue”. You can save thousands in merchant fee expenses, just by activating it.
🤓 If you're in a position to, try to outsource legit people. Get a marketer, instead of handballing it to a casual staff member. Get a lawyer, over asking your brother’s mate’s GF for advice. Get a hospo bookkeeper, don’t get your mum to process the books. The bottom line? Doing this will streamline your operations, bring in fresh perspectives and ultimately save you time (and therefore money) in the long term.
💰 Pay wages weekly! Hospitality labour literally produces revenue, so paying two or four weeks later disconnects the sale and the expense. Mitigate this by switching your payroll to weekly and your output will match your input.
📆 Pay super monthly, instead of quarterly. Set a reminder to pay on the 28th of each month and it’s done! While honestly there’s no financial benefit of monthly payments, avoiding huge spikes once every three months is ideal.
📪 Stop buying in bulk! Encourage your managers to order supplies more often than once every six months. Order what you need and pay for it as you use it.
🍷 If you buy wine that takes a month to sell, negotiate 28 days of credit. Just because a supplier offers you 60 day's credit, it doesn't mean you have to use it.
🧢 Merch. A potential burst bubble en route. Selling merch can be fun, and a great way to build out your brand, but once your friends and family all have a t-shirt and tote, you might find you are stuck with stock you can't move. Consider running a smaller amount first to see what works.
💅 Crazy fit-outs are also fun. But there are other cost-effective ways to DIY if you've not got the bankroll of a major hospo group or investor. When you're starting out, there's nothing wrong with keeping things simple, getting creative for less, and maybe even looking at an upgrade down the track.
📝 Stop logging your timesheets on paper, it isn’t the 1900s and it’s a hop, skip and a jump from a potential pay dispute.
🕵️ Lastly, consider using an industry-specific accountant, like, um, Cafe Bookkeepers if you’re in hospo. They’re experts in bookkeeping, accounting, new-business set-up and payroll for hospitality businesses specifically, meaning more time for you to focus on running your FOH. Stunning.