All restaurants should use this statement method to clearly illustrate your total incomings and total outgoings. This will highlight whether your business is working to a profit or a loss.
There will usually be two main sections involved in your statement.
- This will include all sales of food and drink. If your restaurant provides an outside catering service all profits should be included also.
- It is important to include all outgoings. This will encompass your cost of goods sold, wages, basic building and utility costs, insurance policies etc.
It is ideal to prepare a profit and loss statement every week if possible. You will soon be able to notice and pick up on patterns occurring within your income and outgoings and will be able to adjust your business plan and ambitions accordingly. If you can perfect your spread sheet to include all necessary items, the profit and loss statement can become an essential and effective tool to ensure the success of your business.