balance sheet and food service

BALANCE SHEET AND

FOOD SERVICEKritika Gupta Jyoti Bala

Amanpreet Kaur

What is a Balance Sheet?A balance sheet is a financial report that illustrates the food service operation’s financial condition on a particular date. It shows what the operation assets are and how they are balanced against the liabilities.

BALANCE SHEET - TERMINOLOGY

Assets: All items owned by the organization that have financial value. These item include cash on hand, amounts receivable, the value of inventory and supplies, and so forth.

Liabilities: The opposite of assets, include the organization’s current operating expenses and its long-term debt. Obligations owed by the District, such as payroll payables and related District fringe benefits of employees.

Fund Balance: Difference between the assets and liabilities.

What is a Food Service?• Foodservice or catering industry defines those businesses,

institutions, and companies responsible for any meal prepared outside the home. This industry includes restaurants, school and hospital cafeterias, catering operations, and many other formats.

• The companies that supply foodservice operators are called foodservice distributors. Foodservice distributors sell goods like small wares (kitchen utensils) and foods.

Types of Food Service Systems

• Conventional Food Service System – In this, ingredients are assembled and food is produced on-site. These are extensively used in schools, restaurants, colleges or university cafeterias.

• Centralized Food Service System – In this, the food production is centralized (central kitchen or food factory) and food is transported to satellites (receiving kitchen) where it is served to customers. Prepared food may be stored frozen, chilled or hot-held. Typical uses of this system are airline caterers , large city school systems and vending companies.

• Ready Prepared Food Service System – in this system, food is produced on-site, held chilled or frozen, reheated and served to customers on-site. Widely used in hospitals and prisons.

• Assembly Food Service System – Also known as ‘kitchenless kitchen’; fully prepared foods are purchased and require only storage, final assembly, heating and serving. The benefit of this system is that limited equipment are used.

USES• FBS are useful forA classified balance sheet helps organize the different items on a balance sheet, making

the information easier to read and understand. The more organized format helps managers in making decisions without digging and sorting through the information.

Estimating over all shortages & surplus based on normative food needs expressed in terms of energy as well as protein , carbohydrates & fats.

Developing projections of future food supply needs.Labour costs are easier to monitor and control through cost accountingBalance sheets help people both inside and outside of a company to see the financial

position of the company at a certain point in time. A balance sheet lays out all of the company's assets as well as its liabilities. Business owners or managers use balance sheets to determine if adjustments to business practices in the company are in order. A potential creditor may use a balance sheet to determine if the business should be extended credit, as well as to determine the interest rate the creditor should charge the business.

BALANCE SHEET OF A HOSPITAL

BIBLIOGRAPHY

• http://www.waunakee.k12.wi.us/cms_files/resources/EXPLANATION%20OF%20BUDGET%20TERMINOLOGY.pdf

• Food Service Manual for Health Care Institutions by Ruby Parker Puckett, American Society for Healthcare Food Service Administrators

Thank You!