Problem – Excerpt from client’s email to us – “The pandemic has had an adverse effect on our business and costs have been particularly high. My bookkeeper charges an exorbitant amount of money. He has done me a major dis-service by not reporting any profit/loss or offering any advice. It turns out that 2 weeks ago he reported to me, out of the blue, that I am running at a loss. He has advised costs are too high and profit is very low. This is the first time in 14 months that he has offered a report of any kind. My previous chef was over-ordering and not costing dishes properly. His approach made it very difficult to question him. We have been operating below capacity due to current restrictions and covid. Ryan I need a bookkeeper who will help me steer us out of this situation. My bookkeeper has offered nothing to help me get us back on track.”

Solution – When I took this engagement, I had to hit the ground running. There were several changes that had to be implemented in the business. Food costs and staff costs were super high, so we had to devise a plan to get these under control and as per the industry benchmarks. We also analysed each and every item on the profit and loss report, and either removed something that wasn’t a necessity or we looked for the best deal on the market. We began providing regular reports and monitored each and every expense closely to make sure we were not going overboard.

Did it work? Absolutely! Firstly, with the help of the new chef, we were able to significantly reduce food costs. The wages costs are still on the higher side (partly due to lockdown) and we are working closely with the manages to get these under control. Finally, by streamlining some of the internal systems & processes, we have managed to help District Brewer save $7200 in annual bookkeeping fees.