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Restaurant Budgeting

Article Outline
Preparing an Operating Budget

Preparing an Operating Budget
An operating budget is a formal plan developed by management
that projects the expected future sales and expenses of an
organization for a specifi ed time period. The budget process for
a restaurant must take into consideration various external and
internal factors. External factors include the overall state of the
economy, infl ation, consumer confi dence, and industry trends.
Internal factors include the restaurant ’ s direct competitors, location,
customer base, access to the labor pool, availability of suppliers,
and fi nancial performance in previous years. During the
budgeting process, management establishes the goals and objectives
of the organization and plans for the future by forecasting
anticipated sales and expenses. A budget can be used as part of the
internal controls procedures of the restaurant. By comparing actual
amounts to budget amounts and investigating the variances, management
can determine the underlining cause of any discrepancies
and take the necessary steps to correct the problem. This process
can improve the reliability of accounting records as well as the
effi ciency of the restaurant ’ s operations.

QuickBooks allows a user to create a budget using Profi t & Loss Accounts and Balance
Sheet Accounts. An account must exist in the Chart of Accounts to be viewed in the
Budgets are most often used to forecast revenue and expense accounts. Budgets can
be created from scratch, using data from the previous year or from the previous year ’ s
budget. QuickBooks can create a budget by customer, job, or class if the class tracking
feature has been enabled. Budgeted amounts can be altered at any time.

Preparing a Budget from Scratch
Click the Company drop - down menu.
Select Planning & Budgeting .
Select Set Up Budgets .
Select the appropriate date, in the Create New Budget window.
Select Profi t & Loss budget type.
Click Next .
Select No additional criteria at the Additional Profi t & Loss Budget Criteria
Click Next .
Select Create budget from scratch at the Choose how you want to create a
budget prompt.
Click Finish .
Input budget data (see Figure 9 - 1 ).

When entering fi xed monthly budgeted amounts, enter the amount in the fi rst month
and click the Copy Across button to populate each month in the year.

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