Pizza Today - March 2017 - 68

To address the first hurdle, I say
'why not?' Why do some indepen-

dent pizzeria operators not maintain
financials? Simply this: they are not
looking to the future, so they do not see
the need to maintain accurate records.
Receipts for purchases get lost and sales
are not accurately entered. The resulting
financials cannot be used for current
management or for future growth. Trust
me. If you don't pay now, you will pay
later. Accurate sales and cost records are
the price you pay for admission to what
I call 'The Game.'
Let's take a look at hurdle number 1, the "why."
* Bankers: To borrow money for

growth, you have to show a minimum
of two years of good financials.
* Landlords: To get exceptional
locations (location, location, location)
those same good financials give you the
edge against the 'big boys' competing
for that space.
* The Government (a.k.a. The
Man): As you grow, you will be under

more scrutiny. The Man loves accurate
financials, and offers great incentives on
your tax return.
* Profit: Good financials allow you to
manage labor and food costs as well as

6 8 / P I Z Z AT O D AY. C O M / M A R C H 2 0 1 7

utility, maintenance and remodel costs.
Unfailingly, I have seen a minimum of
five percent (of sales) improvement in
costs when accurate financials are added
to a pizzeria's operational toolbox. On
$500,000 in sales, that is $25,000 in
your pocket at the end of the year.
* Employees: When managers' goals
are set based on their ability to understand financials, they blossom. They
understand how to lead the employees
to accomplish food and labor goals each
day.
* Your accountant: Your tax pro
can't do your taxes correctly if you are
not providing all of the information.
There are legitimate expenses you may
be missing.
So we now arrive at the second
hurdle - the "how."

There are many paths to success with
financials. Here are my players.
* The Manager: Every Monday,
the manager of the pizzeria spends six
hours doing weekly paperwork. This
begins with an inventory of every item
in the restaurant, followed by creating
the weekly food order. They complete
the daily paperwork, then a weekly sales
report showing weekly totals of sales,
credit card deposits, bank deposits and

cash paid outs. Next is the "cost analysis
worksheet." Food and labor numbers
are compared to sales. Sales are compared to last year, last month and last
week. Every two weeks a payroll report
is created. Once per month, a monthend inventory is created.
* Pre-bookkeeper: All of the manager's work comes to this person. He
sorts the paperwork as follows: Payroll
to the payroll company. Placing weekly
food orders to the various vendors.
Invoices and weekly sales reports to the
bookkeeper. Fundraising and donations
to the marketing person. Cost analysis
worksheets to me.
* Payroll: We use an outside company. There is too much legality to do
internally.
* Bookkeeper: The bookkeeper
enters all the manager numbers and
inputs all invoices using QuickBooks.
Each week, all the checks are attached
to invoices ready for my review and
signature. Monthly P&L statements are
prepared by location and monthly bank
reconciliations are completed. Monthly
and quarterly, sales tax returns are filed.
* Accountant: A professional who
reviews the financials quarterly, including the balance sheet, and prepares the
tax returns annually.
* Me: I review the monthly P&L
statements and provide corrections to
the bookkeeper. I review the P&Ls
with the managers and pay bonuses
based on results.
I have seen many owners make
money but who are not able to grow
their business because they were lacking
good financials. Are you ready to play
The Game? Remember my mentor
Roger Duncan's adage: "Sales are made
in the stores; profits are made in the
office." n
DAN COLLIER is the founder of Pizza
Man Dan's in California and a speaker at
International Pizza Expo.


http://www.PIZZATODAY.COM

Pizza Today - March 2017

Table of Contents for the Digital Edition of Pizza Today - March 2017

Pizza Today - March 2017
Commentary
Contents
Contributors
Expo Spotlight
Interact
Conversation
Man on the Street
Respecting the Craft
On Tap
Destinations
Knead to Know
Menu Strategies
Tabletop Condiments
Brand With Merchandise
Speeding Up Service
America’s No. 1 Topping: Pepperoni
Neo vs. Neapolitan
How To Change Products
Dessert Pizzas
Up-to-Date Financials
Upgrading Tech
Analyzing Competition
What is Baker’s Lung?
Start Up Stories
Community Partnerships
Vital Sanitization
Road to Expo: Doug Ferriman and George Hadjis
Unemployment Claims
Pizza Today on the Road: Theo’s, New Orleans, LA
Pizza Today on the Road: Pupatella, Arlington, VA.
Pizza Today on the Road: Pizzeria Paradiso, Washington D.C.
Preferred Supplier
Pizza Today Yellow Pages
The Marketplace
Reader’s Resource
Trending Recipe
Pizza Today - March 2017 - CT1
Pizza Today - March 2017 - CT2
Pizza Today - March 2017 - Pizza Today - March 2017
Pizza Today - March 2017 - Cover2
Pizza Today - March 2017 - Commentary
Pizza Today - March 2017 - 4
Pizza Today - March 2017 - 5
Pizza Today - March 2017 - Contents
Pizza Today - March 2017 - 7
Pizza Today - March 2017 - 8
Pizza Today - March 2017 - 9
Pizza Today - March 2017 - Contributors
Pizza Today - March 2017 - 11
Pizza Today - March 2017 - Expo Spotlight
Pizza Today - March 2017 - 13
Pizza Today - March 2017 - Interact
Pizza Today - March 2017 - 15
Pizza Today - March 2017 - Conversation
Pizza Today - March 2017 - 17
Pizza Today - March 2017 - Man on the Street
Pizza Today - March 2017 - 19
Pizza Today - March 2017 - Respecting the Craft
Pizza Today - March 2017 - 21
Pizza Today - March 2017 - On Tap
Pizza Today - March 2017 - 23
Pizza Today - March 2017 - Destinations
Pizza Today - March 2017 - 25
Pizza Today - March 2017 - Knead to Know
Pizza Today - March 2017 - 27
Pizza Today - March 2017 - 28
Pizza Today - March 2017 - 29
Pizza Today - March 2017 - 30
Pizza Today - March 2017 - 31
Pizza Today - March 2017 - Menu Strategies
Pizza Today - March 2017 - 33
Pizza Today - March 2017 - 34
Pizza Today - March 2017 - 35
Pizza Today - March 2017 - Tabletop Condiments
Pizza Today - March 2017 - 37
Pizza Today - March 2017 - 38
Pizza Today - March 2017 - 39
Pizza Today - March 2017 - Brand With Merchandise
Pizza Today - March 2017 - 41
Pizza Today - March 2017 - 42
Pizza Today - March 2017 - 43
Pizza Today - March 2017 - Speeding Up Service
Pizza Today - March 2017 - 45
Pizza Today - March 2017 - 46
Pizza Today - March 2017 - 47
Pizza Today - March 2017 - America’s No. 1 Topping: Pepperoni
Pizza Today - March 2017 - 49
Pizza Today - March 2017 - 50
Pizza Today - March 2017 - 51
Pizza Today - March 2017 - Neo vs. Neapolitan
Pizza Today - March 2017 - 53
Pizza Today - March 2017 - 54
Pizza Today - March 2017 - 55
Pizza Today - March 2017 - How To Change Products
Pizza Today - March 2017 - 57
Pizza Today - March 2017 - 58
Pizza Today - March 2017 - 59
Pizza Today - March 2017 - Dessert Pizzas
Pizza Today - March 2017 - 61
Pizza Today - March 2017 - 62
Pizza Today - March 2017 - 63
Pizza Today - March 2017 - 64
Pizza Today - March 2017 - 65
Pizza Today - March 2017 - Up-to-Date Financials
Pizza Today - March 2017 - 67
Pizza Today - March 2017 - 68
Pizza Today - March 2017 - 69
Pizza Today - March 2017 - Upgrading Tech
Pizza Today - March 2017 - 71
Pizza Today - March 2017 - 72
Pizza Today - March 2017 - 73
Pizza Today - March 2017 - Analyzing Competition
Pizza Today - March 2017 - 75
Pizza Today - March 2017 - 76
Pizza Today - March 2017 - 77
Pizza Today - March 2017 - What is Baker’s Lung?
Pizza Today - March 2017 - 79
Pizza Today - March 2017 - 80
Pizza Today - March 2017 - 81
Pizza Today - March 2017 - Start Up Stories
Pizza Today - March 2017 - 83
Pizza Today - March 2017 - 84
Pizza Today - March 2017 - 85
Pizza Today - March 2017 - Community Partnerships
Pizza Today - March 2017 - 87
Pizza Today - March 2017 - 88
Pizza Today - March 2017 - 89
Pizza Today - March 2017 - Vital Sanitization
Pizza Today - March 2017 - 91
Pizza Today - March 2017 - 92
Pizza Today - March 2017 - 93
Pizza Today - March 2017 - Road to Expo: Doug Ferriman and George Hadjis
Pizza Today - March 2017 - 95
Pizza Today - March 2017 - 96
Pizza Today - March 2017 - 97
Pizza Today - March 2017 - Unemployment Claims
Pizza Today - March 2017 - 99
Pizza Today - March 2017 - 100
Pizza Today - March 2017 - 101
Pizza Today - March 2017 - Pizza Today on the Road: Theo’s, New Orleans, LA
Pizza Today - March 2017 - 103
Pizza Today - March 2017 - 104
Pizza Today - March 2017 - 105
Pizza Today - March 2017 - 106
Pizza Today - March 2017 - 107
Pizza Today - March 2017 - 108
Pizza Today - March 2017 - 109
Pizza Today - March 2017 - Pizza Today on the Road: Pupatella, Arlington, VA.
Pizza Today - March 2017 - 111
Pizza Today - March 2017 - 112
Pizza Today - March 2017 - 113
Pizza Today - March 2017 - 114
Pizza Today - March 2017 - 115
Pizza Today - March 2017 - Pizza Today on the Road: Pizzeria Paradiso, Washington D.C.
Pizza Today - March 2017 - 117
Pizza Today - March 2017 - 118
Pizza Today - March 2017 - 119
Pizza Today - March 2017 - 120
Pizza Today - March 2017 - 121
Pizza Today - March 2017 - Preferred Supplier
Pizza Today - March 2017 - 123
Pizza Today - March 2017 - 124
Pizza Today - March 2017 - 125
Pizza Today - March 2017 - 126
Pizza Today - March 2017 - 127
Pizza Today - March 2017 - 128
Pizza Today - March 2017 - 129
Pizza Today - March 2017 - 130
Pizza Today - March 2017 - 131
Pizza Today - March 2017 - 132
Pizza Today - March 2017 - 133
Pizza Today - March 2017 - 134
Pizza Today - March 2017 - 135
Pizza Today - March 2017 - 136
Pizza Today - March 2017 - 137
Pizza Today - March 2017 - 138
Pizza Today - March 2017 - 139
Pizza Today - March 2017 - 140
Pizza Today - March 2017 - 141
Pizza Today - March 2017 - 142
Pizza Today - March 2017 - 143
Pizza Today - March 2017 - 144
Pizza Today - March 2017 - 145
Pizza Today - March 2017 - Pizza Today Yellow Pages
Pizza Today - March 2017 - 147
Pizza Today - March 2017 - 148
Pizza Today - March 2017 - 149
Pizza Today - March 2017 - 150
Pizza Today - March 2017 - 151
Pizza Today - March 2017 - 152
Pizza Today - March 2017 - 153
Pizza Today - March 2017 - 154
Pizza Today - March 2017 - The Marketplace
Pizza Today - March 2017 - 156
Pizza Today - March 2017 - 157
Pizza Today - March 2017 - 158
Pizza Today - March 2017 - 159
Pizza Today - March 2017 - 160
Pizza Today - March 2017 - 161
Pizza Today - March 2017 - 162
Pizza Today - March 2017 - 163
Pizza Today - March 2017 - 164
Pizza Today - March 2017 - 165
Pizza Today - March 2017 - 166
Pizza Today - March 2017 - 167
Pizza Today - March 2017 - 168
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