Lesson 11 - Financial Management

Often, restaurant managers become embroiled in the day-to-day operations of the restaurant and can easily overlook basic financial management practices that serve not only to maintain, but even to improve the overall success of their operation. Financial management incorporates management of cash and cash equivalents. Another vital
aspect—especially in the restaurant industry—is asset life. We'll find out more about asset life next.
By the end of this lesson, you will be able to:
  • Define terminology related to financial management.
  • Identify the appropriate allocation of capital as part of a capital asset plan.
  • Explain the importance of budgeting in master planning for asset replacement and capital improvements.
  • Recognize the financial management tool used for comparing operational costs between different equipment manufacturers.
  • Describe accrual-based accounting and its benefits to a restaurant manager.