How to Do a Monthly Financial Review for Your Cafe: A Practical Template

Why Checking Your Bank Balance Isn't Enough

"Balance went up this month, must be profitable." This is the most common way cafe owners check business health — and it's the most misleading. Bank balances are influenced by many things beyond operations: rent deposits just paid, supplier invoices not yet due, or personal money mixed into the business account.

A structured monthly financial review separates noise from signal. And the good news — you don't need an accounting background to do it.

When to Do It

Ideally during the first week of the new month, when last month's data is complete. Block 1-2 hours without interruptions. This isn't something you can do while working the register.

Step 1: Gather the Data

You need three sources:

• POS reports: Total revenue, transaction count, breakdown by category, by payment method
• Expense records: Ingredients, wages, rent, electricity, internet, maintenance, and other expenses
• Bank statements: Transaction history for cross-checking

Step 2: Calculate Revenue

From your POS reports, note:

• Total revenue this month
• Compare with last month — up or down by what percentage?
• Transaction count — is the revenue increase from more transactions or higher average order value?
• Top 5 menu items — any changes from last month?

Step 3: Calculate Total Expenses

Categorize your expenses:

• Ingredients (COGS): Everything you buy to make menu items — coffee, milk, bread, packaging, etc.
• Labor: Wages, bonuses, benefits — all staff costs
• Rent: Fixed monthly cost for the location
• Utilities: Electricity, water, internet, gas
• Marketing: Ads, paid promotions
• Other: Maintenance, supplies, bank fees, etc.

Step 4: Calculate Profit

Simple formulas:

Gross Profit = Revenue - COGS

Net Profit = Revenue - All Expenses

Also calculate as percentages:

• Food cost % = COGS / Revenue × 100 (target: 25-35%)
• Labor cost % = Labor / Revenue × 100 (target: 25-35%)
• Net profit % = Net Profit / Revenue × 100

Step 5: Identify Trends and Anomalies

Compare these numbers with the previous month. Look for:

• Food cost going up? Maybe ingredient prices increased, or waste went up, or portion control slipped
• Revenue down but transactions stable? Average order value may have dropped — review menu pricing
• Any large one-time expenses? Make sure these don't obscure your actual operational picture

Step 6: Set Targets for Next Month

Based on your review, pick 1-3 things to improve next month. Examples:

• "Reduce food cost from 33% to 30% by reviewing portions and suppliers"
• "Increase average order value from Rp 28,000 to Rp 32,000 through upselling"
• "Reduce overtime labor cost by improving shift scheduling"

Don't target everything at once. Focus on the 1-3 with the biggest impact.

A Simple Template

You can create a basic spreadsheet table:

• Rows: Revenue, COGS, Gross Profit, Labor, Rent, Utilities, Marketing, Other, Net Profit
• Columns: This Month, Last Month, Difference, Percentage

This is sufficient for most cafes. No need for specialized accounting software at this stage.

Consistency Matters More Than Precision

A monthly financial review that's "roughly accurate" but done every month is far more valuable than a super-detailed analysis done once a year. The goal isn't an audit — it's awareness. You want to know your business's direction: improving, stable, or declining. And you want to know that before the problem gets too big to fix.