Click Here to Download PDF

Accounting for Cafes & Coffee Shops

Running a café, coffee shop or sandwich bar is hard work. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation you have to contend with food handling regulations and council permits. The hospitality industry is also characterised by irregular trading hours, erratic and seasonal trade and stiff competition. The industry is littered with casual employees who bring their own set of challenges and to top it off, you are on your feet all day.

Over the years, Domenic Tempone and his team of accountants have mentored numerous café, coffee shop and sandwich bar owners through the various stages of their business life cycle, from start up right through to sale. You’ll find we offer hospitality clients a full  'menu' of accounting, tax and business development services and we now boast a significant base of clients who run cafes, coffee shops, sandwich bars and take away food outlets. Our experience and knowledge with clients in hospitality has seen the industry become a real niche within our accounting practice.

THINKING OF STARTING A CAFE OR COFFEE SHOP?

We are recognised as business start-up specialists and if you are looking to open a coffee shop, café or sandwich bar there are numerous issues to consider . There is site selection, tax registrations, insurances, the lease of the premises and health regulations. We can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan. On an operational level, we understand what is required for a successful opening and we can even assist you in executing the successful launch of the business.

Over the past two decades our team of accountants have helped dozens of cafe, sandwich shop and coffee shop owners get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your industry.

Starting a business is a bit like building a house. You need solid foundations including the right taxation structure, accounting software, insurances, a marketing plan, website and social media channels. Your choice of business structure is critical and there are a number of different options including a company, sole trader, partnership or trust. When selecting a business structure, asset protection is a key consideration as well as your family situation, forecast level of profit and your future plans to admit new business partners.

Your choice of accounting software is another brick in your foundation wall and the wrong choice can be catastrophic. Poor financial records are one of the biggest causes of business failure in this country. Up to date, accurate financial records let you make informed business decisions. Your software program needs to match your business needs with your level of accounting skill because too many business owners use sophisticated double entry accounting programs and produce nothing but 'computerised shoebox' records. One of our priorities is to help you minimise the cost of compliance which in some cases includes training you to use the software. We support a number of programs and have a strong preference for cloud based solutions like Xero.

To build a house you also need the right tools and when 'constructing' your business we have developed a number of tools including a start-up expense checklist that dissects your start-up costs into categories like equipment, IT costs, professional fees, marketing costs and a website. These figures then slot into a cash flow budget template and produce a forecast of your first year's trading results. If you need a vehicle in your business we can assist you with finance by chattel mortgage or lease through one of our affiliate partners. Not only that, you can access fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars.

Through our affiliate partners we can also help you source funds to finance your business purchase, shop fit out, equipment, franchise fee, motor vehicle or van. Menu pricing is absolutely vital to the success of your café or sandwich shop and we can help you do some price modelling so you know your break even point and understand the financial implications of price increases by your suppliers. If you run a café, coffee shop or fast food outlet in Melbourne we can help you compare your business performance against industry benchmarks so you know what is working in your business, what's not working and what needs working on.

MARKETING YOUR BUSINESS

For small business owners, your marketing can be the difference between gloom, doom and boom.

Most cafes and coffee shops rely on their reputation and referrals to grow their business and while these ingredients remain important, you need to shift your marketing focus online. Increasingly local searches like ‘Cafe Malvern’ are driving traffic to your website and often your website is the first touch point with a potential new customer. As you know, you only get one chance to make a good first impression and your website is your silent sales person working 24/7 to promote your business.

One of our biggest points of difference compared to other accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan), your corporate brochure and help you harness the power of social media to win more referrals. Over the past few years we have worked with dozens of clients to help them create affordable, quality lead generation websites that are responsive to smart phones and tablets. We can provide advice and guidance with your website content including video production and if your website lacks calls to action or lead magnets we'll help you build them. In addition, we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.

If you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.

The marketing process begins with your branding and we have worked through the process with dozens of clients over the years and using some online resources we can help you build a modern brand that resonates with your target market. We can even help you develop your stationery at a fraction of the cost of engaging a graphic artist or marketing consultant.

Our role includes helping you understand the Four Ways to Grow A Business and in the process, identify the key profit drivers in your business. We can talk you through various profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you don't leave any profit on the counter of your café, coffee shop or fast food outlet.

Our business advisors offer cafe, sandwich shops and coffee shop owners a range of tailored business solutions including:

• Start-Up Business Advice for Cafes, Sandwich Shops and Coffee Shops  
• Advice regarding the Purchase or Sale of your Café, Sandwich Bar or Coffee Shop
• Spreadsheets and Tools including a Start Up Expense Checklist and Pricing Calculator
• Advice and Establishment of Your Business Structure taking into account issues like Asset Protection, Tax Minimisation and Future Discount Capital Gains Tax Concessions
• Business Registrations including ABN, TFN, GST, WorkCover etc.
• Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
• Accounting Software Selection and Training – Point of Sale, Bookkeeping & Payroll
• Site Location and Advice Regarding your Retail Tenancy Lease
• Preparation of Finance Applications & Bank Submissions
• Preparation and Analysis of Financial Statements
• Bookkeeping and Payroll Services
• Costing of Menu Items
• Income Tax Returns and Tax Planning Strategies
• Industry Benchmarking and KPI Management
• Marketing Advice regarding your Branding, Website, Corporate Brochure and Menu
• Personal Financial Planning & Wealth Creation Strategies
• Business & Risk Insurances including Income Protection and Life Insurance
• Vehicle, Equipment and Shop Fit Out Finance (Chattel Mortgage, Lease etc.)
• Monitoring and Controlling Labour Costs
• Advice regarding Claiming Motor Vehicle Costs
• Recession and Survival Strategies
• Business Succession Planning

As you can see, we are not your typical suburban accounting firm. We are more than just tax accountants, we are business and profit builders who provide a full range of accounting, tax and business coaching services to small business owners.

If you're an ambitious business owner looking to accelerate your business success we invite you to book a FREE, one hour introductory consultation to discuss your business needs. You can expect to receive practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, contact us today on (03) 9500 8666 or complete your details in the box at the top right hand side of this page. We look forward to helping you create a more profitable, valuable and saleable business.

Nexus Accountants - Connecting Your Business to Profits