Our client first engaged us as a single Chinese restaurant operation. Over the years, the client has experienced huge growth into a well-known chain with five restaurants in Melbourne.
The owner, Linda, was too busy with everyday restaurant management. With multiple businesses, the restaurants had become disconnected in accounts and management. She wanted a quick, easy to digest snapshot of how all the restaurants were performing on a day-to-day basis.
She also wanted to have a future proof business structure which would facility further expansion of the restaurants while maximising potential tax savings.
After a detailed analysis of Linda’s business, our team at Cloud 8 determined the best way forward was to set up a holding entity structure. This structure enabled Linda to hold an interest in each of the restaurants while allowing flexibility to have co-investors in existing restaurants and potential franchise opportunities in the future. The structure also gave her options to stream profit and better view and manage group tax payable.
The Cloud 8 team also transferred her spreadsheet based bookkeeping system to the cloud using Xero. Now, Linda can access all the key financial performances for each of her restaurant anytime, anywhere.
The final touch to help her manage receipts and bills was implementing document management app ‘Hubdoc’. The app turns receipts, bills, and invoices into accurately coded Xero transactions with key data entered and source documents attached. Transactions are then auto-matched to the bank feed for one-click reconciliation and audit-proofing.
Linda’s business is structured to support future growth and Linda has a comprehensive view of how her business is performing.
When I found the Cloud 8 team, I was really struggling with managing multiple restaurants, keeping up to date with bookkeeping and also having a view of how the businesses were performing individually and as a group. It was all getting overly complex and too hard to manage.
The Cloud 8 team recommended a brilliant app in the Xero system that automated a lot of the time-consuming data entry and reconciliation, freeing up my time. The app also means I have a current, accurate view of performance across all my restaurants, with the ability to drill down into key areas as I need to.
The team’s recommendations on structure also means that I am set up to grow my business in the future.
The Cloud 8 team will definitely continue to be part of the future of my business as it grows.