Regardless of if you are running a five-star, elegant dining restaurant, or a smaller, mom and pop style eatery, a profit and loss statement is a necessary tool. More than just having a P&L, you must know what it shows, how the statement works, and how you can use the information it contains to determine the strengths and weaknesses of your business.
The Restaurant’s Profit and Loss Statement Defined
The profit and loss statement used by restaurants is also referred to as a statement of operations, statement of earnings, and income statement. It’s like the P. Diddy of restaurant accounting forms. A P&L is a management tool used for reviewing the total expenses and revenue of your restaurant during a certain time period.
At its most basic level, your P&L is going to reflect costs that are being subtracted from sales. The result of this provides a rough estimate of your restaurant’s overall financial health. For example:
December 5, 2017
by Jennifer B