Daily Financial Management Tips to Keep Your Pub’s Operations Running Smoothly

Running a pub can be an exhilarating experience — the lively atmosphere, happy patrons, and the never-ending flow of drinks. However, behind the scenes, it’s the daily financial management that keeps the taps running. In an industry where margins can be thinner than a pub’s bar snack selection, ensuring your finances are in order is crucial for the success of your establishment.

While most of us would prefer to focus on the fun bits like curating the perfect beer selection, keeping a firm handle on the finances will make sure you can continue doing what you love. Here are some simple yet effective daily financial management tips to help keep your pub operations running as smoothly as your best draught.

Track Sales Every Day
First things first — you need to know how much you’re making every day. Keeping track of daily sales not only gives you a clear picture of how your pub is performing but also helps you identify trends. Are Fridays consistently outperforming Saturdays? Is that new craft beer flying off the shelves?

Daily tracking also allows you to see how well promotions are doing. For example, you might introduce a “Buy One, Get One” offer on slow nights and want to see how it affects sales. By closely monitoring sales on a daily basis, you can make quick adjustments to your strategy and ensure your pub remains profitable. Plus, having this data at your fingertips means you’re never caught off guard when someone asks, “How’s business?”

Keep an Eye on Your Cash Flow
In the pub industry, cash flow is king. Having money coming in regularly is great, but if it’s not aligned with when your bills are due, you could find yourself in hot water (or warm beer). Keep track of your daily cash flow by ensuring that payments to suppliers and staff are scheduled in sync with your sales.

A quick daily check-in on your cash flow ensures that you have enough funds to cover any unexpected expenses, such as equipment repairs or last-minute stock orders. If cash flow becomes tight, consider offering a limited-time discount to boost sales or renegotiating payment terms with your suppliers.

Manage Stock Levels Daily
Let’s be real — running out of lager during the evening rush is about as appealing as a flat pint. Stock management is a daily task that can’t be overlooked. By tracking your inventory daily, you’ll avoid over-ordering, which ties up cash in excess stock, or under-ordering, which could leave your patrons disappointed.

Take note of your best sellers and adjust your orders accordingly. If there’s a big event like a football match coming up, stock up on crowd favourites. On quieter days, keep an eye on slow-moving items and consider rotating them out to avoid wastage. A daily review of your stock levels will keep your shelves stocked and your pub profitable.

Keep an Eye on Labour Costs
Managing your staff effectively can make or break your daily financial success. Labour costs can quickly spiral out of control if not kept in check. Ideally, you should aim for a labour cost percentage of around 30% of your total sales.

To achieve this, ensure that your staffing levels match the demand. Do you really need three bartenders on a slow Tuesday afternoon? By adjusting shifts based on your daily sales data, you can save on labour costs while still providing excellent customer service.

Daily Reconciliation of Sales and Expenses
At the end of each day, take the time to reconcile your sales and expenses. This might sound tedious, but it’s essential for staying on top of your finances. Use accounting software like Xero to make this task easier.

Daily reconciliation allows you to catch any discrepancies between your till and your bank account. If you’ve got a rogue receipt or an overcharge that slipped through the cracks, you’ll be able to address it straight away rather than at the end of the month when it’s harder to track down the culprit.

Monitor Your Profit Margins
It’s easy to get swept away by a busy night, but what’s more important is knowing if you’re actually making a profit. Monitor your daily profit margins by subtracting the cost of goods sold (COGS) from your daily sales. This simple calculation will give you a quick overview of whether you’re pricing your menu correctly or if rising costs are eating into your profits.

If your margins are consistently low, it might be time to review your pricing strategy or negotiate with suppliers for better rates. Keeping a close eye on this daily ensures you’re making enough to keep the lights on and the beer flowing.

Conclusion: Consistency is Key
In the pub industry, consistency is everything, whether it’s in your service, your beer selection, or your financial management. By tracking sales, managing stock, and keeping a close eye on your cash flow, you can ensure your pub remains profitable and well-run. These daily financial management tips may seem small, but when added up over time, they make a huge difference in the long-term success of your business.

After all, you didn’t open a pub just to stress about finances, did you? Stay on top of your numbers, and you can spend more time enjoying the good stuff — like serving up that perfect pint.