Demystifying Restaurant Financial Statements – Part 3
By David Scott Peters
Restaurant Tip of the Week
There are three basic tools/reports you need to understand when it comes to demystifying financial statements. They are the balance sheet, the profit and loss statement (P&L) and the general ledger. All of these tools are intimately connected; one cannot exist independently of the others.
The general ledger
As you watch the movie (the P&L), you listen to the lines of the actors. So not only do you see the delivery come in the back door, you hear the driver go down the list, in detail, of what he is delivering. Now you see the script written on paper, the line-by-line detail of what happened in the movie. This is the general ledger and it is the line-by-line detail of what happened in your business on a daily basis.
David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.