It seems like every new food safety regulation comes with a new set of time-consuming internal audit of restaurant compliances. Many restaurants in Dubai and UAE realize they cannot afford to wait until the last minute to prepare for a third-party assessment because of all these new Standard Operating Procedures and Prerequisite Programs. It’s all too much.
Today’s regulations are so complex and extensive that it is nearly impossible for most UAE entities to stay compliant if one doesn’t keep up with the times. Instead of fixing chickens’ heads at the last moment, restaurants are conducting regular internal audits of all aspects of their stores.
An internal audit is the best way to ensure food safety and continuous improvement. Employees will feel more pressure to comply if regular audits become part of their daily work. An excellent internal audit program can help you be “audit-ready” if the dreaded federal inspection comes knocking.
Benefits of Internal Restaurant Audits
It has been proven that it is impossible for audit companies in UAE to keep up with the complexity and rate of new food regulations. Even if the rules aren’t as strict, it would be smart to have a continuous food safety inspection system. These are the five main benefits of your restaurant’s continuous food safety audit system.
There are already internal audit process and procedures in place. Even though it would be ideal for employees to follow these procedures in every situation, that is not the reality. Regular internal audits of restaurants keep track of who did what, when, and how. The responsible person is held accountable when something goes wrong.
Find and Fix Problems Faster
Internal audit of restaurant can reveal issues before they escalate into more severe cases. Before an inspection, they allow owners the time to correct and make any necessary adjustments before being fined or temporarily closed down. They significantly reduce the chance of getting hurt or becoming ill.
Operational Efficiency Increased
A living record of employee inputs is a great way to get real-time feedback. You can get continuous feedback about what is working and what needs improvement by monitoring processes and procedures. Dubai and UAE owners can improve efficiency in their restaurants and bars by using this information.
You should know : Continuous Internal Audit in UAE
Succession is always a constant challenge for any business, no matter its industry. Auditing provides the information you need to improve, as we have already mentioned. If you don’t know what you’re doing, you can’t improve. If things don’t improve, the data will show you where you’re failing. Over time, minor improvements can add up to a significant amount.
Safety of Food and Facilities
Auditing food and facility safety will be an essential part of your ongoing internal auditing plan. Minor problems can be identified before they become significant hazards by conducting infrastructure, electrical, and fire inspections. Restaurants’ number one concern is food safety. Foodborne illness risks are significantly reduced when there is a system in place to monitor and control the temperature of the food.
It is vital to have the correct Restaurant Insurance
Restaurants in Dubai and UAE must have adequate insurance in case of an unexpected loss. Restaurants can be sued. When faced with a lawsuit, owners need to be protected. Many lawsuits against hospitality risk stem from food-related issues. Dubai managers need to ensure that their assets and stores are covered in the event of an incident.
Internal controls to beef up your Business
Few UAE restaurant owners or chefs would list financial management as one of the reasons they started a business. Restaurants must have strong internal controls to be self-reliant and avoid financial missteps.
A well-designed internal control system clarifies internal audit procedures, identifies roles and responsibilities, and establishes checks and balances. These internal controls also show potential investors and banks that your business is stable and has a steady cash flow.
Contractors and Employees of Vets
According to the National Restaurant Association’s 2017 estimates, employee theft is responsible for 75% of inventory shortages and about 4% of sales. Companies in Dubai can reduce risk by carefully screening candidates and contractors. These steps will help you avoid risk: Interviews should be scheduled immediately to confirm work history and talk with references.
Convert Payroll and Employee Records
Specific management procedures should be established that will guide you in the following areas:
Who UAE entities can hire?
Before processing payroll data, a second manager should review it. This includes double-checking the timesheets of hourly employees, overtime, and salary wages and reconciling them with the budget. To avoid interest and tax penalties, outsourcing payroll is a smart move.
You must ensure Consistent Cash Management
Although there are many approaches, here are some suggestions for managing cash in restaurants. Give each employee ownership of the register drawer during their shift.
Financial Responsibility should be Spread
Establish a system of checks that requires at most two people to add money or sign off on registers following a shift. This will prevent theft and errors. If a senior crew member is unavailable, a manager can oversee. Managers can work together to make deposits and reconcile bank statements.
Work with a Certified Internal Audit in Dubai
As a restaurant in Dubai and UAE, it is easy to get caught up in the operations of the business that you can forget all about your internal audit function. Its always a good idea to hire a professional internal audit service in UAE to help streamline your audit process. Talk to Audit Firms in Dubai today to help you.
Kasun Liyanage is an Audit Manager with over 7 years of experience dealing with diversified corporate clients. He not only manages the team’s work schedule but also is an expert in handling audit areas such as external audits and fraud investigation, Internal control benchmarking and best practices and well as preparation of financial statements and IFRS compliance.