Do you ever struggle with balancing your budget, paying your taxes,
paying your bills, paying your employees,
and just staying on top of all of this payment stuff?
I don't even mean about the money, I just mean staying on top of it all.
Well, I got a great question from a user and I'm going to answer exactly
that coming up right now.
Hey, everybody. Ryan Gromfin here – author, speaker, chef, restaurateur,
and the founder of the RestaurantBoss.com, as well as ClickBacon.com.
And before I get into today's topic about balancing your budget,
paying your taxes, paying your bill,
staying on top of all that because I know how challenging it is
with all the other things you have to do as a restaurant owner,
I just want to thank you for being here and ask you if you wouldn't mind
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So, now, this user asked me - how do I stay on top of all this… Oh,
I am sorry! Someone in the Facebook group sent me an email,
I don't remember that said, how can I stay on top of all of this?
Okay, well, the first part was budget,
so here's the reality. I'm not going to get too far into it here,
but if you're not familiar with the software that I created called Click Bacon,
go to the website right now, go to ClickBacon.
That's C-L-I-C-K B-A-C-O-N. ClickBacon.com
There'll be a link below here or somewhere for you to check that out,
but that is exactly what bacon does,
it is a budget tool that will help you create a budget
and help you stay on top of your budgets so you never
miss your food cost or miss your labor cost or miss your budget.
Again,great information on that site about what it is.
Yes, I'm recommending it because I created it,
but the reason I created it is because it works
and you guys need it. So, first thing, check out bacon.
Second thing like paying taxes and all this other stuff,
so I suggest that you have three bank accounts in your business.
One bank account is your operations account,
one bank account is your tax account,
and one bank account is your profits account.
At some point every week, usually like on a Monday or a Tuesday,
I suggest that you take 10% of your sales,
transfer it to the tax account
and take another up to ten percent of your sales and transfer it to your
profits account,
now that only leaves 80% of last week sales.
10% for taxes, that's gone.
You owe that money; I mean maybe it's 8.75, or 9.25,or whatever,
but just 10%, you can always reimburse
yourself you know at the end of the year,
but just 10% out right away because
you don't even own that money,
then the 10% for profits
is because you should make money in this business,
and if you only have 80% of the money left in your bank account,
you're going to be a little more careful about what you buy
and what you spend and how you operate your business.
Now some of you who maybe aren't profitable right now
won't be able to do the 10% for profits, do 1%.
If you did 10 thousand dollars in sales last week,
transfer 100 to your profit account,
transfer 200-300 whatever you can do,
but never go backward. If you want to start at 1% and do that for two months,
and then in two months, go to 1.5 or 2%, that's fine,
but never stop doing this and never go backward.
Okay, so that handles taxes. Now the third part of the question -
how do we stay on top of all these bills? Well, first of all,
you really should be using an accounting program like QuickBooks or Xero,
that's X-E-R-O, or Fresh books or something.
While Bacon is phenomenal and it is phenomenal,
it's not an accounting program.
You should be using an accounting program, or your bookkeeper
should be doing this. If your bookkeeper
does this, then they probably have their own system,
but the reason I'm getting this question and
some of you out there really don't have bookkeepers,
so 1) you should be using an accounting tool. 2)
This shouldn't be a daily process. If you try to do it daily,
it's going to overwhelm you.
I believe you should be logging into your QuickBooks account, in general,
twice a week, usually like on a Monday and a Thursday, right?
So, Monday is the day that you can transfer your money,
log into your QuickBooks account, and then again Thursday.
Here's what you do the two times you login.
When you log in on Monday, you're going to enter in all of your sales,
all of your purchases, all of your bills
that need to be paid, all your credit card receipts,
all that, but most importantly,
your bills that need to get paid get entered into QuickBooks.
So on Monday, you're going to go back to any
bills that are on your desk, right?
So, let's say an invoice comes in on Thursday or on Friday,
you put it into an envelope, it sits on your desk, then Monday,
you enter it into QuickBooks with a due date on it,
so the date that you received it and a due date,
that's called an account payable,
that's money that you owe someone else.
Same thing on Thursday,
so anything that came in after you did your QuickBooks on Monday,
Tuesday-Wednesday, Thursday morning gets entered in on Thursday.
Now here's the difference, Thursday is also your bill payday,
so after you enter everything into QuickBooks,
you can run a report that will show you what bills are coming up based
on the due date, then you can select which ones you want to pay,
you just put a checkmark next to it and you print out the check.
This way you can control and stay on top of everything.
You get to control that.
Maybe there's a bill that really is due, but you're going to wait another week,
or maybe there's one that you just want to pay and get it over with, great,
do that. You know your money better than anyone else,
but here's the thing -
if someone calls you on a Wednesday and says,
hey, you're a little late on this, just say,
it's in my account, it's in QuickBooks, I pay bills on Thursday,
I mail checks on Friday, yours will go out this week, and that's it.
If someone calls you on Friday afternoon and says, hey,
I really need to get paid, now you just say, I have you in QuickBooks,
it I didn't get to your bill this week,
I have some other bills in front of you, but I'll get to it next week,
you'll be in the next check run.
Don't print checks in the middle of the week for two reasons. 1)
I want you to create that rhythm,
that timing with your vendors where
you print checks on Thursday, you sign them on Thursday,
you mail them on Friday,
but also, I don't want you… I don't know what the word is for this,
but I don't want you like constantly
going in and going in and going in because
every time you do that, you're wasting time.
Go into QuickBooks twice a week, that's it.
Mondays you enter bills, Thursdays you enter bills and pay them.
This is a system that I use in my current business right now,
it's a system I used with restaurants,
it's a system that I've teach many, many others.
Very simple, very straightforward, and it works.
So, I know we covered a lot here.
I hope you take at least one piece of the advice here.
Take the three bank accounts piece of advice if you could only take one,
but anyway, I hope you enjoyed this video, leave some comments,
smash the like button, click on the bell.
I look forward to bringing you more great videos
like this one. Have a wonderful day.
I want to thank you for watching that video.
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