What is a restaurant balance sheet?
A financial statement that provides a snapshot of a restaurant’s financial position at a specific point in time, showing its assets, liabilities, and owner’s equity.
Why is a balance sheet important for restaurants?
At Hone, we often joke that only the accountant cares about a business’s balance sheet—until it’s tax time. Your restaurant’s balance sheet is important for getting an overall read of your business. I like to describe it as your business’s report card. Because it includes information about things like loans and other investments, your balance sheet is key to helping you understand if your week to week profits are actually enough.
For example, maybe you had a great month with $100,000 in sales. But if we look at the balance sheet and you have a $10,000,000 loan, you may need to find additional ways to increase your profits and top-line revenue to pay down that massive loan!
