Ever stared at your P&L wondering what to actually ask your accountant beyond "How are we doing?" Smart preparation transforms those awkward number-reading sessions into strategic conversations that drive real improvements. Here's how to turn your financial statements into actionable business insights.
What do you need to prepare for the conversation?
A meaningful discussion with your accountant requires more than just handing over spreadsheets. Your P&L tells the story of your restaurant's health, but you need to prepare the right narrative.
💡 Example preparation:
Restaurant The Taste, Q3 2024:
- Revenue: €180.000 (previous quarter: €165.000)
- Food cost: €63.000 = 35% (was 32%)
- Personnel costs: €72.000 = 40%
- Energy costs: €14.400 = 8% (was 6%)
Question: Why is my food cost percentage climbing despite higher revenue?
Which ratios do you need to calculate?
Raw numbers don't reveal much. Percentages expose your cost structure and highlight concerning trends that need immediate attention.
Critical percentages to calculate:
- Food cost: (Purchase costs / Revenue) × 100
- Personnel costs: (Wages + social contributions / Revenue) × 100
- Fixed costs: (Rent + energy + insurance / Revenue) × 100
- Net profit margin: (Net profit / Revenue) × 100
⚠️ Note:
Always calculate using revenue excluding VAT for accurate comparisons. Your P&L typically shows correct amounts, but verify this beforehand.
How do you compare with previous periods?
Trends matter more than single-period snapshots. From years of working in professional kitchens, I've seen how quarterly comparisons reveal patterns that monthly reviews often miss.
💡 Example trend analysis:
Food cost development Bistro Delicious:
- Q3 2023: 30%
- Q4 2023: 31%
- Q1 2024: 33%
- Q2 2024: 34%
- Q3 2024: 35%
Clear upward trend - immediate action needed!
What concrete questions can you ask?
Strategic questions generate actionable advice. Focus on controllable factors and areas where professional guidance creates value.
Effective questions for your accountant:
- "My food cost jumped from 32% to 35%. What specific factors do you see driving this increase?"
- "What's an optimal ratio between fixed and variable costs for my restaurant type?"
- "Which cost categories should I prioritize to maximize profit improvement?"
- "How can I use this P&L data to create more accurate cashflow projections?"
How do you prepare action plans?
Productive conversations conclude with specific commitments. Come prepared with potential solutions your accountant can help you model financially.
💡 Example action plan:
Problem: Food cost too high (35%)
- Option 1: Increase menu prices by 8%
- Option 2: Adjust recipes to save €1.50 per plate
- Option 3: Switch supplier for 3 main ingredients
Ask your accountant: "Can you model how each option impacts my bottom line?"
Preparing your P&L with percentages, trend analysis, and targeted questions transforms routine accounting meetings into strategic planning sessions. You'll walk away with actionable insights, not just number reviews.
How do you prepare your P&L as a conversation topic?
Calculate all cost percentages
Work out what percentage of your revenue goes to food cost, personnel, fixed costs, and profit. Use the formula: (Cost item / Revenue excl. VAT) × 100. This gives you insight into your cost structure.
Compare with previous periods
Put your current figures next to last quarter and the same quarter last year. Pay special attention to trends: are your cost percentages rising or falling? This helps you ask the right questions.
Formulate concrete questions
Prepare 3-5 specific questions about striking figures or trends. For example: 'My energy costs are rising from 6% to 8%, what causes do you see?' This leads to useful advice.
✨ Pro tip
Circle any cost percentage that changed more than 2% from last quarter and write your theory about why next to it. This gives your accountant immediate insight into your operational awareness and focuses the discussion on real issues.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I discuss my P&L with my accountant?
Quarterly works for most stable restaurants. Monthly if you're troubleshooting problems or implementing major changes. Annual reviews are too infrequent for meaningful course corrections.
What cost percentages are normal for a restaurant?
Food cost 28-35%, personnel 25-35%, fixed costs 15-25%, net profit 5-15%. These vary significantly by concept and location. Ask your accountant for relevant industry benchmarks in your area.
What if my accountant only gives numbers without advice?
Ask specific questions about improvement opportunities. If they can't provide strategic guidance, consider finding a hospitality-focused advisor for operational insights.
Should I compare my P&L with other restaurants?
Focus primarily on your own historical trends. Other restaurants operate with different cost structures and business models, making direct comparisons less valuable than tracking your own progress.
How can I track my P&L performance between quarterly meetings?
Use tools like KitchenNmbrs to monitor food costs in real-time. This helps you spot problems immediately rather than discovering them months later in quarterly reports.
What should I do if my profit margins are consistently below industry standards?
Identify your three highest cost categories and analyze each one separately. Often, focusing on just one major cost driver yields better results than trying to cut everything simultaneously.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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