This section is really the kind that only an accounting geek can love but nevertheless these are important numbers to account for in your restaurant financials. For one thing, using depreciation helps you pay less in taxes which everyone loves and can understand. For another thing, these are numbers that will be looked at as part of your balance sheet and to evaluate the way you’ve structured your business overall so they do matter.
Don’t worry too much if you aren’t really sure how it works or what it means exactly. All you need to do is plug in what the rate (interest) is going to be for any equipment you are leasing and how long the lease is for and what your first payment will be. The software takes care of the rest.
If you have any other assets that are going to be leased, you can add them in here (except vehicles, which we do separately). In most cases there isn’t anything.
For the goodwill part, this only applies if you are buying a restaurant and you are paying a price that is higher than what the equipment and fixtures are worth. The difference between the price you pay and the actual value of the assets is called the goodwill. This does not mean you are paying for “air” as one person told me!
Goodwill (not shown in the screenshot above) is the value of the business that has been established by being open, having regular customers, a name in the community and so on. It is the difference between an active business and a pile of equipment sitting in an empty lot or a warehouse somewhere. And it goes on your balance sheet and also helps cut your taxes so don’t think of it as “nothing” unless it really is nothing and in that case don’t pay for it!