19/10/2020 by MNV Associates
Restaurant Internal Control Checklist
What to check for in the internal control checklist for restaurants
Managing a restaurant depend on a variety of variables. A proposal which centers on the successful implementation of internal controls in these establishments has been implemented by Abu Dhabi. In terms of their restaurant internal control checklist, companies in the GCC who want to be competitive can check out this post.
Essentials for internal controls to be incorporated in a restaurant
The effectiveness of operating a dining establishment can be an enormous task, especially with the existing risk of fraudulent practices, theft of staff, and other similar acts occurring in your restaurant. If you are beginning out in the field, you might want to pay close attention to some non negotiables or internal control basics mentioned below:
- Cash Flow
The company's total cash flow is one of the most critical things that requires internal monitoring. This makes it easier to be open and avoid money from being lifted from cash registers or from workers committing similar dishonest actions in order to gain more cash, such as using discounts and voids and turning it into cash.
A more straightforward result is possible thanks to clear and frequent cash management. Conducting or automating random drawer counts is one of the easiest ways to incorporate these. This gives access to the restaurant by seeing the right sum of money in the register.
In addition, optimizing cash counting control techniques such as starting shifts with a predetermined employee managing the till and keeping the employee accountable for potential cash loss on their behalf is also important for a company in the restaurant industry.
Restricting cash controls and alerting higher-ups, such as supervisors, will significantly counter employee theft and fraud in the industry as part of additional safety steps that restaurants will take.
- Analysis of financial statement
A company's financial statements are particularly important in evaluating the execution of fraudulent practices. Restaurants and other businesses are encouraged to periodically check financial statements at least once a month in order to stop this from occurring.
By coordinating bank deposits and point-of - sale data with monthly financial statements, areas of misstatements or inconsistencies may be found by those in the management. A key business strategy that can serve as a game-changer is carefully looking at accounting records and company numbers at the end of the month.
- Store Oversight and Production
Inventory issues may alter the flow of the restaurant significantly. Store and inventory reporting should also be conducted as part of the internal controls of a establishment in order to eliminate obstructions from day-to-day activities and to hinder the company's finances. This guarantees all restaurateurs and owners that suppliers are compensated and/or that suppliers are not overpaid.
Restaurants are expected to cross-check orders with the goods or amounts supplied to perform procedures. Store checks and inventory will close the distance between such inconsistencies, with payable accounts being a possible place for theft and fraud.
Another way to enforce this is to ensure that controlled deliveries in the dining establishment are observed. In addition, it can serve as viable internal controls to restrict employee access to food inventory and storage areas, as well as performing physical inventory counts.
Likewise, the ability to position orders and stocks from trusted suppliers may also be granted to chefs, cooks, and other employees, provided that strict limits on the amount of spending are granted.
The bottom line
Able to stay on top of the internal control checklist of your restaurant is the secret to a thriving market. With these intermediate controls in place, you are building yourself up for success in your organization against fraudulent activities.