restaurant bookkeeping tips

While specific goals will vary from restaurant to restaurant, here are some steps you can take to set restaurant accounting goals for your venue. Managing your finances can be one of the hardest parts of running a restaurant – and also the deciding factor between success and failure. From creating cash-flow projections to applying for loans, overseeing the financial aspects of your restaurant can sometimes feel like a juggling act. Just as there is a right way to do restaurant accounting, there is definitely a wrong way. We’re going to assume you’re not an accountant (if you are, you’re probably not reading this article), and so we’re going to tell you some common mistakes to avoid, too. Your financial forecast gives you a rough estimate of how much revenue you’ll generate in the future.

Recording daily sales and categorizing them by cash and credit sales, food versus beverage, or other metrics is vital for understanding your revenue streams. For DIY bookkeepers, this means careful record-keeping and keeping a close eye on your tax obligations. That’s why we want to take you through some of the common terms, reports and processes for understanding bookkeeping and accounting for restaurants. Whether you’re curious about how to do bookkeeping, or working with a bookkeeper and accountant, this guide is here to help. As an owner, you know the challenges of running a restaurant, such as staffing, inventory management, and controlling the cost of goods sold.

Automate Your Restaurant POS with QuickBooks Online

At the end of the pay period or the end of the month, you’ll avoid burning precious energy trying to remember if you ever got a credit for that missing produce or why you got a chargeback request from a customer. how to do bookkeeping for a restaurant This is considered employee income rather than wages and isn’t included in a restaurant’s revenue. In order to record the daily sales you will need to generate a report that summarizes your sales.

restaurant bookkeeping tips

According to, restaurants under $1M per year in revenue can choose their own small business accounting method and most often it would be the cash method. Welcome to the bustling world of the restaurant industry, where delicious cuisines and memorable dining experiences are crafted daily. Whether you own a small cafe or a high-end fine dining establishment, one crucial aspect of running a successful restaurant is effective bookkeeping. While it may not be the most glamorous task, proper financial management is vital for the long-term growth and sustainability of your business. Keeping on top of your bookkeeping is worth far more than avoiding tax season headaches.

What Is The Cost of Goods Sold in a Restaurant?

While this might sound like a good way to get all the bookkeeping done quickly, this can actually be less efficient. Navigating the choppy waters of restaurant accounting can be a daunting experience, but you don’t have to panic! Becoming aware of widespread errors in restaurant payroll and learning how to avert them will help maintain financial stability.

EBITDA represents earnings that are a result of operations only, while stripping away the effects of financing, accounting, and capital spending on your restaurant’s earnings. Cost of goods sold is a KPI that indicates how well you’re pricing your products and controlling your inventory. CoGS represents the actual cost of food and beverage used to produce your food and beverage sales. By keeping tabs on your CoGS ratio, you can take action to reduce and contain your inventory costs. Finally, your restaurant’s success will be measured against key performance indicators.

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