Buying, opening or running a hospitality business involves many financial decisions. Food costs, wages, rent, GST, equipment, stock, delivery-platform fees and cash flow can all have a significant effect on profitability.

We provide practical accounting, tax and business support for restaurants, cafés, coffee shops, takeaways, pizza shops, franchise food outlets and other hospitality businesses throughout New Zealand.

Whether you are considering buying your first hospitality business, opening a new location, expanding an existing operation or looking for better financial information from your current business, we can help you understand the numbers and manage the accounting side.

Thinking of Buying a Restaurant, Café or Hospitality Business?

Buying a hospitality business can be a major financial commitment.

Before you make the decision, one of the most important questions is:

Does this business really make the profit the seller says it makes?

We can review the financial information available and help you understand what the numbers are showing before you buy.

This may include reviewing financial statements, GST returns, sales and POS reports, payroll and wage costs, food and beverage costs, rent, operating expenses, delivery-platform fees, cash flow and reported or adjusted profit information.

We can also help identify financial matters that may require further investigation before you proceed.

The extent of our review depends on the information available and the scope of work agreed with you. We do not provide formal business valuations.

Planning the Purchase or Opening a New Hospitality Business

Once you understand the business you are considering, the next question is whether the numbers work for you.

Our Business Advice and Cash Flow support can help with:

• Cash-flow projections

• Financial forecasts

• Business plans

• Expected operating costs

• Working-capital calculations

• Profit forecasts

• Financial information requested by banks or other lenders

We can also help you understand the likely financial commitments involved in running the business after settlement, including wages, suppliers, rent, GST and other operating expenses.

Where finance is required, we can prepare relevant financial information. Lending decisions are made by the bank or lender, and we do not guarantee finance approval.

Setting Up the Accounting Side

After buying or opening a hospitality business, getting the accounting systems organised from the beginning can make ongoing management easier.

We can assist with Bookkeeping and Xero Support, GST setup and reporting, payroll accounting and other ongoing accounting requirements.

Our GST and Tax Compliance service can assist with GST returns and other tax obligations, while our Annual Accounts and Tax Returns service covers your year-end accounting and income tax requirements.

Food Costs, Gross Profit & Business Performance

For a restaurant or café, sales alone do not tell you whether the business is performing well.

Food costs, wages, rent, delivery commissions, merchant fees and other operating expenses all affect the amount of profit that remains.

We can help you understand:

• Sales

• Food and beverage costs

• Gross profit

• Wage costs

• Rent

• Delivery commissions

• Merchant fees

• Operating expenses

• Net profit

• Cash flow

Where your accounting records allow, we can compare results over time and help you understand where the money is going.

This can help identify changes in food costs, wage costs, margins or profitability that may require attention.

Payroll & Employer Accounting

Payroll is an important part of many hospitality businesses.

Our Payroll Services can assist with payroll processing, PAYE, payday filing, KiwiSaver, applicable payroll deductions, payroll reconciliations and employer accounting records.

Our role is accounting and payroll support. We do not provide employment-law advice or advice relating to employment disputes.

Franchise & Landlord Reporting

Franchise hospitality businesses can have additional financial and reporting requirements.

These may include franchise fees, royalty payments, marketing levies, KPI reporting, management reports and other financial information requested by a franchisor, lender or landlord.

We can assist with preparing regular or tailored financial reports based on your accounting records and the reporting requirements provided to us.

You can learn more about this on our Franchise Accounting page.

Growing to Multiple Locations

When a hospitality business grows from one location to two or more, it becomes increasingly important to understand how each outlet is performing.

Where the accounting records are structured appropriately, we can help you review individual locations as well as the overall business.

This may include comparing sales, wages, food costs, operating expenses and profitability between restaurants, cafés or other outlets.

Equipment, Fit-Out & Asset Purchases

Restaurants and cafés can require significant investment in ovens, refrigeration, coffee machines, kitchen equipment, furniture, POS systems and fit-outs.

We can assist with the accounting and tax treatment of business assets, depreciation, finance arrangements and Investment Boost where the relevant requirements are met.

Tax rules can change, so significant asset purchases should be reviewed based on the circumstances and rules applying at the time.

Support in English, Punjabi & Hindi

We can provide accounting support in English, Punjabi and Hindi.

You can also learn more about our Indian Business Accounting services.

Talk to Us Before You Buy, Open or Expand

If you are considering buying a restaurant, café, takeaway or other hospitality business, it can be useful to understand the financial position before making a major commitment.

If you already operate a hospitality business, we can help you improve the quality of your accounting information, understand your costs and profitability, and manage your ongoing accounting and tax requirements.

Talk to Yugraj Singh Mahil CA about your hospitality business.

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