{"id":15731,"date":"2020-01-22T13:02:44","date_gmt":"2020-01-22T05:02:44","guid":{"rendered":"https:\/\/gerbangbisnes.com\/?p=15731"},"modified":"2024-10-09T15:28:43","modified_gmt":"2024-10-09T07:28:43","slug":"financial-management-for-a-fb-business-2-what-is-financial-management","status":"publish","type":"post","link":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/","title":{"rendered":"Financial Management for F&B Business #2 – What is Financial Management?"},"content":{"rendered":"

Raymond S. Smidgall (et al.) in the book \u201cRestaurant Financial Basics\u201d<\/em> defines it as:<\/p>\n

\u201cThe process of organizing, analyzing, interpreting, recording, summarizing, and reporting financial information in ways that are meaningful for owners, managers, and other internal users and for lenders, and for other external users. Also referred to as accounting.\u201d<\/p>\n

The key terms in financial management or accounting are: organizing, analyzing, interpreting, recording, summarizing, and reporting financial information. It also means accounting.<\/p>\n

Financial Management in Restaurants<\/h3>\n

For restaurant financial management, restaurant managers use financial information to manage daily operational activities. This is closely related to the revenue and profits earned, as well as daily expenditures. It’s about money coming in and going out.<\/p>\n

Financial information needs to be organized and meaningful. Analysis and interpretation of this information are crucial. That\u2019s why it needs to be recorded, summarized, and reported to those who need it. For example, the restaurant owner needs to understand the economic health of the restaurant.<\/p>\n

Financial Management vs. Bookkeeping<\/h3>\n

Bookkeeping<\/strong> involves analyzing and recording specific financial transactions such as sales, revenue collection, and payroll. Data from bookkeeping is then summarized by accountants for interpretation by management.<\/p>\n

Areas of Accounting<\/h3>\n

Some specialized areas in accounting\/financial management include:<\/p>\n

    \n
  • Financial Accounting<\/strong>: The entire process of creating and using accounting information to make business decisions. Deliverables in this area include financial statements such as balance sheets, income statements (profit & loss), and statements of cash flows.<\/li>\n
  • Audit<\/strong>: Auditors assess whether controls or measures for managing cash and inventory are in place and effective. The financial management system is also evaluated to ensure that financial information is recorded and reported accurately. Financial reports are assessed to determine if they truly represent the financial position, operating results, and cash flows, and whether accounting principles are consistently applied.<\/li>\n
  • Managerial Accounting<\/strong>: The process of planning using financial information, both historical and forward-looking estimates. For example, in a restaurant, this might involve identifying the most popular dishes ordered by customers!<\/li>\n
  • Tax Accounting<\/strong>: Planning and preparing financial information for the purpose of filing and paying taxes to the government.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    For restaurant financial management, restaurant managers use financial information to manage daily operational activities. This is closely related to the revenue and profits earned, as well as daily expenditures. It’s about money coming in and going out.<\/p>\n","protected":false},"author":1,"featured_media":14250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","footnotes":""},"categories":[226,225],"tags":[],"class_list":["post-15731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-en","category-accounting-finance-en"],"yoast_head":"\nFinancial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes\" \/>\n<meta property=\"og:description\" content=\"For restaurant financial management, restaurant managers use financial information to manage daily operational activities. This is closely related to the revenue and profits earned, as well as daily expenditures. It's about money coming in and going out.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/\" \/>\n<meta property=\"og:site_name\" content=\"Gerbang Bisnes\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gerbangbizlearn\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-22T05:02:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-09T07:28:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nazri Ahmad\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nazri Ahmad\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/\"},\"author\":{\"name\":\"Nazri Ahmad\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#\\\/schema\\\/person\\\/efb9873a96f3c4d06342f4bcaa9d6136\"},\"headline\":\"Financial Management for F&B Business #2 – What is Financial Management?\",\"datePublished\":\"2020-01-22T05:02:44+00:00\",\"dateModified\":\"2024-10-09T07:28:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/\"},\"wordCount\":357,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2020\\\/01\\\/closeup-accountant-hands-scaled.jpg\",\"articleSection\":[\"Accounting\",\"Accounting & Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/\",\"url\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/\",\"name\":\"Financial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2020\\\/01\\\/closeup-accountant-hands-scaled.jpg\",\"datePublished\":\"2020-01-22T05:02:44+00:00\",\"dateModified\":\"2024-10-09T07:28:43+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#primaryimage\",\"url\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2020\\\/01\\\/closeup-accountant-hands-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2020\\\/01\\\/closeup-accountant-hands-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Closeup of accountant counting on calculator and working with table\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/financial-management-for-a-fb-business-2-what-is-financial-management\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial Management for F&B Business #2 – What is Financial Management?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/\",\"name\":\"Gerbang Bisnes\",\"description\":\"Learn . Unlearn . Relearn\",\"publisher\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#organization\",\"name\":\"Gerbang Bisnes\",\"url\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2021\\\/06\\\/logo.png\",\"contentUrl\":\"https:\\\/\\\/gerbangbisnes.com\\\/wp-content\\\/uploads\\\/2021\\\/06\\\/logo.png\",\"width\":409,\"height\":55,\"caption\":\"Gerbang Bisnes\"},\"image\":{\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/gerbangbizlearn\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/gerbangbisnes.com\\\/en\\\/#\\\/schema\\\/person\\\/efb9873a96f3c4d06342f4bcaa9d6136\",\"name\":\"Nazri Ahmad\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g\",\"caption\":\"Nazri Ahmad\"},\"sameAs\":[\"https:\\\/\\\/gerbangbisnes.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/","og_locale":"en_US","og_type":"article","og_title":"Financial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes","og_description":"For restaurant financial management, restaurant managers use financial information to manage daily operational activities. This is closely related to the revenue and profits earned, as well as daily expenditures. It's about money coming in and going out.","og_url":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/","og_site_name":"Gerbang Bisnes","article_publisher":"https:\/\/www.facebook.com\/gerbangbizlearn\/","article_published_time":"2020-01-22T05:02:44+00:00","article_modified_time":"2024-10-09T07:28:43+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg","type":"image\/jpeg"}],"author":"Nazri Ahmad","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Nazri Ahmad","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#article","isPartOf":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/"},"author":{"name":"Nazri Ahmad","@id":"https:\/\/gerbangbisnes.com\/en\/#\/schema\/person\/efb9873a96f3c4d06342f4bcaa9d6136"},"headline":"Financial Management for F&B Business #2 – What is Financial Management?","datePublished":"2020-01-22T05:02:44+00:00","dateModified":"2024-10-09T07:28:43+00:00","mainEntityOfPage":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/"},"wordCount":357,"commentCount":0,"publisher":{"@id":"https:\/\/gerbangbisnes.com\/en\/#organization"},"image":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#primaryimage"},"thumbnailUrl":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg","articleSection":["Accounting","Accounting & Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/","url":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/","name":"Financial Management for F&B Business #2 - What is Financial Management? » Gerbang Bisnes","isPartOf":{"@id":"https:\/\/gerbangbisnes.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#primaryimage"},"image":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#primaryimage"},"thumbnailUrl":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg","datePublished":"2020-01-22T05:02:44+00:00","dateModified":"2024-10-09T07:28:43+00:00","breadcrumb":{"@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#primaryimage","url":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg","contentUrl":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2020\/01\/closeup-accountant-hands-scaled.jpg","width":2560,"height":1707,"caption":"Closeup of accountant counting on calculator and working with table"},{"@type":"BreadcrumbList","@id":"https:\/\/gerbangbisnes.com\/en\/financial-management-for-a-fb-business-2-what-is-financial-management\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/gerbangbisnes.com\/en\/"},{"@type":"ListItem","position":2,"name":"Financial Management for F&B Business #2 – What is Financial Management?"}]},{"@type":"WebSite","@id":"https:\/\/gerbangbisnes.com\/en\/#website","url":"https:\/\/gerbangbisnes.com\/en\/","name":"Gerbang Bisnes","description":"Learn . Unlearn . Relearn","publisher":{"@id":"https:\/\/gerbangbisnes.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/gerbangbisnes.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/gerbangbisnes.com\/en\/#organization","name":"Gerbang Bisnes","url":"https:\/\/gerbangbisnes.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/gerbangbisnes.com\/en\/#\/schema\/logo\/image\/","url":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2021\/06\/logo.png","contentUrl":"https:\/\/gerbangbisnes.com\/wp-content\/uploads\/2021\/06\/logo.png","width":409,"height":55,"caption":"Gerbang Bisnes"},"image":{"@id":"https:\/\/gerbangbisnes.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/gerbangbizlearn\/"]},{"@type":"Person","@id":"https:\/\/gerbangbisnes.com\/en\/#\/schema\/person\/efb9873a96f3c4d06342f4bcaa9d6136","name":"Nazri Ahmad","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1e7dcaf8115d63c674a83ff80c2811696305d2bae6010dc2917ef81bba819fd3?s=96&d=mm&r=g","caption":"Nazri Ahmad"},"sameAs":["https:\/\/gerbangbisnes.com"]}]}},"_links":{"self":[{"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/posts\/15731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/comments?post=15731"}],"version-history":[{"count":6,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/posts\/15731\/revisions"}],"predecessor-version":[{"id":17232,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/posts\/15731\/revisions\/17232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/media\/14250"}],"wp:attachment":[{"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/media?parent=15731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/categories?post=15731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gerbangbisnes.com\/en\/wp-json\/wp\/v2\/tags?post=15731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}