In the vibrant and competitive business landscape of Los Angeles, efficient financial management is crucial for the success and growth of companies across industries. Accounting services play a pivotal role in providing accurate financial insights, ensuring regulatory compliance and optimizing resource allocation.
From small startups to established enterprises, restaurants can leverage expert accounting solutions to navigate the complex financial landscape of Los Angeles and drive sustainable growth.
Accounts Payable Outsourcing
Accounts payable outsourcing is the practice of entrusting the management and processing of your accounts payable functions to a specialized third-party service provider. This service involves transferring the responsibility of invoice processing, vendor management, payment processing and related tasks to an external partner.
Payroll processing refers to the administration and management of employee wages, benefits and deductions within an organization. This process involves calculating employee salaries, processing payroll taxes and ensuring compliance with labor laws and regulations. You can jeopardize your business if you aren’t unfamiliar with the Los Angeles wage and California state labor laws. At RDMS, we help LA-based restaurant owners by taking this burden off their hands and ensuring they stay compliant.
Monthly Sales Tax Filing
Monthly sales tax filing is essential for restaurants and other businesses that collect sales tax from their customers. The 2023 minimum combined sales tax rate is 9.5% for Los Angeles. The city and state tax regulations laid out in the California tax guide for restaurants are fairly detailed, and many restaurant owners find them challenging to navigate. As a Los Angeles bookkeeping agency, we can help you navigate the monthly sales tax filing process.
571 and 8027 Filings
Every restaurant in Los Angeles with employees who receive tips must file Form 8027 to report total sales, charge sales, number of tipped staff, charged tips and the amount of tips annually. The county also requires you to file annual returns detailing the cost and year you acquired your business personal property in Form 571-L. Outsourcing these tasks can provide your restaurant with specialized expertise and ensure compliance.
Bank and Credit Card Reconciliations
Outsourcing bank and credit card reconciliations is a common practice for many businesses, including banks and financial institutions. Outsourcing your bank and credit card reconciliations involves hiring external service providers to handle your reconciliation process, which involves comparing and matching financial transactions recorded in your accounting system with the corresponding transactions in your bank and credit card statements.
Weekly P&L Reviews
Outsourcing period-end profit and loss (P&L) involves engaging external experts or consultants to assist in the analysis, review and interpretation of financial statements, specifically focusing on the P&L statement. Through Restaurant365 Accounting Software, you receive weekly profit and loss statements, allowing you to drill down through your prime cost, controllables and non-controllables. Most restaurants do monthly reviews, but analyzing a weekly ops statement lets you spot changes quickly, like an increase in ingredient price, so you can make the necessary changes to stay profitable.
Outsourcing audit support involves engaging external professionals or firms to provide assistance and expertise during the audit process. An audit is essential to help you figure out where your business can improve financially. Operating a restaurant in a complicated city like Los Angeles requires airtight financial auditing to keep costs low.
Outsourcing benchmark analysis involves hiring external experts or firms to conduct a comparative analysis of your company’s performance, practices and key metrics against industry benchmarks or peer organizations. This type of analysis can provide valuable insights into areas where your business is excelling or falling behind and help identify opportunities for improvement.
Los Angeles is one of the world’s largest food markets, with countless dining options. It’s important to understand the competition to succeed in the competitive landscape. At RDMS, we’re more than just debits and credits—we take the time to visit and analyze your restaurant, food and service and compare it to your competitors.
Outsourcing budget development involves engaging external experts or firms to assist in the process of creating and formulating budgets for your organization. When outsourcing budget development, it is crucial to maintain open lines of communication with external experts, provide them with the necessary financial information and establish clear expectations regarding deliverables, timelines and reporting requirements.
LA-based restaurants need a stable budget to maintain profitability. Balancing the rising food costs, labor costs and rent while keeping menu prices down can be challenging — that’s where we come in. We help you develop a sound budget and find creative solutions to keep costs low and increase sales.
Benefits of Outsourcing Your Bookkeeping, Reporting and CFO Services in Los Angeles
Outsourcing bookkeeping, reporting and CFO services to consulting firms in Los Angeles can offer several benefits for businesses. Here are some key advantages:
- Cost savings: Outsourcing these services can be more cost-effective compared to hiring and maintaining an in-house team. You can save on expenses such as salaries, benefits, office space and software licenses, as the outsourcing provider typically handles these costs.
- Expertise and specialized knowledge: Outsourcing provides access to professionals who specialize in bookkeeping, financial reporting and strategic financial management. We have the necessary knowledge and skills to handle complex financial tasks, ensuring accuracy, compliance and efficient reporting that relate specifically to the restaurant industry. We bring the numbers and operational consulting to the table — from menu design to ways to maximize revenue, we consider all aspects of your restaurant.
- Focus on core activities: By outsourcing these services, you can free up your internal resources to focus on core business activities. Your team can dedicate more time and attention to operations, sales and growth strategies while leaving the financial management tasks to the outsourced provider.
- Scalability and flexibility: Outsourcing allows for scalability and flexibility based on your business needs. As your business grows or experiences fluctuations in demand, the outsourced services can be easily adjusted to accommodate changes in volume and complexity.
- Access to advanced technology and systems: Outsourcing providers often have access to advanced accounting software, reporting tools and technologies. So much technology is available, but restaurants need solutions that work for their operations to see results like reduced food costs. We evaluate the platforms for you to bring you the best in-suite.
- Enhanced data security and compliance: Additionally, reputable outsourcing providers prioritize data security and compliance with relevant regulations. We have robust security measures in place to protect sensitive financial information, including data backups, encryption, access controls and compliance with data protection standards.
- Objective and independent perspective: An outsourced CFO or financial team can offer an objective and independent viewpoint on your financial performance and strategic decision-making. Combining our Los Angeles hospitality and accounting knowledge, we can provide valuable insights, recommendations and financial analysis based on our expertise and experience.
- Timely and accurate reporting: By outsourcing your bookkeeping and reporting services, you can rest assured that your financial reports will be prepared accurately and delivered on time. This is crucial for making informed business decisions, meeting regulatory requirements and maintaining transparent financial records.
- Risk mitigation: Outsourcing these services can also help mitigate the risk of errors, fraud and financial mismanagement. We apply professional standards and controls to minimize risks and detect potential issues, providing an additional layer of assurance.
- Access to strategic financial guidance: An outsourced CFO or financial team can provide strategic financial guidance, helping you set financial goals, develop budgets, create forecasts and make informed financial decisions. Our expertise and insights can contribute to your overall business strategy and financial success.
Why RDMS Group Are the Experts
In the fast-paced and competitive business environment of Los Angeles, professional accounting services are essential for restaurants seeking financial stability, compliance and growth. From tailored financial strategies and accurate bookkeeping to tax planning, business advisory and auditing services, RDMS Group can play a pivotal role in optimizing your financial management and decision-making.
By partnering with us, you can unlock valuable insights, enhance operational efficiency and focus on your core competencies while leaving the complexities of accounting in capable hands. Contact us at RDMS Group today to learn more, or schedule a meeting with us.
Reliable and Experienced Restaurant Accounting Firm
RDMS Group can help you solve your pain points and position your restaurant for success with our full-suite restaurant accounting solutions.Schedule a Meeting