While they may seem like separate industries, managing cash flow is something that restaurant operators and contractors have specific knowledge of. This is where specialised accounting services can help.
Whether you are managing multiple client contracts or plating gourmet meals, working with the right accountant can increase your profits, compliance, and financial reporting.
Choosing a specialist could be one of your best business decisions. In this article, we will explore the difference between a generalist and an accountants for restaurants and contractors.
Why Restaurants Need Specialist Accountants?
- High Volume, Low Margin Operations
Restaurants deal with:
- Constant inventory turnover
- Staff costs and shift scheduling
- Fluctuating daily revenue
- Card payment reconciliations
Specialist accountants understand these dynamics and provide tools to:
- Monitor gross profit margins
- Control labour costs
- Track daily takings and reconcile them with POS data
- Prepare real-time P&Ls for better decision-making
- VAT Complexity
With eat-in food, takeaway food, alcohol, and delivery all taxed at different rates, restaurants have a lot of potential confusion over VAT rates. A specialist accountant will help ensure the correct:
- VAT registration is used
- Quarterly submissions are accurate
- You are advised on Flat Rate VAT schemes
- Payroll & Auto-Enrolment
Hospitality is a high-turnover business with complex payroll models for apprentices, live-in, and casual staff. A restaurant accountant can help you with:
- Weekly submission of payroll (RTI compliant)
- A Tronc scheme for tips as a distributor
- Auto-enrolment contributions to a pension scheme
Why Contractors Need Specialist Accountants?
- IR35 and Tax Compliance
One of the most significant concerns for contractors is navigating IR35 legislation. Specialist contractor accountants:
- Help determine IR35 status
- Advise on whether to operate as a limited company or an umbrella company
- Assist with contracts that pass IR35 tests
- Handle disguised employment risks
- Maximising Take-Home Pay
A knowledgeable contractor accountant will guide you through:
- Claiming legitimate business expenses
- Dividend vs salary planning
- Flat Rate VAT for contractors
- Efficient use of tax-free allowances
- Simplicity Through Cloud Accounting
Contractors want to focus on their projects, not on paperwork. Specialist accountants often provide:
- Cloud tools like FreeAgent, Xero or QuickBooks
- Simple dashboards to track income and taxes due
- Automated reminders for filing deadlines
What Restaurants and Contractors Have in Common
Though industries differ, restaurants and contractors both benefit from accountancy services that are:
Industry-Specific
Generalist accountants may miss industry nuances, like VAT complications in hospitality or IR35 concerns for contractors. Specialists offer tailored advice.
Time-Saving
From payroll to tax returns, specialist accountants streamline financial admin so business owners and contractors can focus on what they do best.
Fully Compliant
Mistakes with HMRC can be costly. An experienced accountant ensures:
- Timely submissions
- Penalty avoidance
- Full audit trail of records
Growth-Focused
Beyond compliance, specialist accountants act as strategic partners, offering guidance on:
- Profit improvement
- Business structure changes
- Investment planning
Choosing the Right Accountant
When selecting an accountants for restaurants or contracting business, look for:
- Proven experience in your sector
- Familiarity with cloud-based tools
- Transparent, fixed-fee pricing
- Proactive communication and regular updates
- Up-to-date knowledge of UK tax legislation
Final Thoughts
While contractors and restaurants have very different types of businesses, both can take advantage of specialised accounting assistance when it comes to the handling of funds.
Industry-based accounting services offer perspective and insight that generalists most likely don’t have, everything from tailored tax planning to smarter reporting and compliance.
At ForeTwo Accounting, we specialise in delivering professional accounting services for contractors and restaurants across the UK. We want our team to save you money, simplify your financial life, and support your company’s growth at any point in its development.
