This is part of our Restaurant Success Series. Click here to access other articles.
Now is the time to convert to a 4-week reporting cycle!
The vast majority of restaurants we work with want to use a 4-week period but don’t have their accounting systems set up to make it happen. Usually, the owner or restaurant manager is having to keep these types of schedules manually in Excel. What we hear over and over again is that it isn’t a useful exercise to compare the results of their latest P&L to the previous month because there are usually a different number of days this month than last month. Further, comparing the current month this year to the same month last year may not be valid either!
Most restaurants do 45% to 60% of weekly sales on Friday and Saturday. So, how can you know if you’re actually up 15% this year over last year when this year’s sales may have included 5 weekends?
Monthly P&Ls for restaurants have inherent shortcomings, which is why we convert our restaurant clients to thirteen 4-week periods per year instead of 12 monthly statements.
Need further convincing?
Our mission is to help improve the performance of our clients’ businesses. The 4-week system is our best practice at Trusted CFO Solutions to make this happen.
The 4-week system helps improve your understanding of how your restaurant is actually performing and is worth considering the switch from calendar month-end to 13 periods per year.
Our clients using this method never consider going back to monthly financials.
For 2022, we provide a 4 week 13-period calendar starting on Monday and one starting on Wednesday.
2023 and 2024 PDF scheduls starting on Monday are also available for download.
Never able to fully identify with the stuffy title of “accountant”, Dixie McCurley set out to revolutionize accounting practices for small- to medium-sized businesses by offering a new way of thinking about the process. With a unique method that capitalizes upon the latest technology, she walks each client through their pain points. In 2019, she was awarded the Financial Leader of the Year award for innovative solutions in finance.
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