restaurant bookkeeper

More advanced restaurant accounting software may also offer features, such as catering management and variance analysis. For other accounting software suggestions, check out our guide to the best small business accounting software. Restaurateurs don’t get into the business because they love numbers, even if close tracking of the numbers is key to their success. Spreadsheets and off-the-shelf accounting software packages may seem like the simplest solutions, but they generally lack key analytics and reporting features and don’t scale well with a growing business. Restaurants are increasingly choosing feature-rich, scalable, easy-to-manage cloud-based accounting applications purpose-built for the industry.

What is restaurant accounting?

In a restaurant, prime costs represent the costs to produce and serve your product, e.g., labor and restaurant food costs. The cash-basis method is typically the simplest, and may seem like the obvious choice for your restaurant, especially as you’re recording income and expenses as money changes how to do bookkeeping for a restaurant hands. For example, if your restaurant’s Point-of-Sale (POS) software costs $1,200 a year to support and the provider bills you annually in January, you don’t want to reflect that entire expense in January. Each month, chip away at it, moving 1/12 of the amount to an Expense GL code.

Top 5 Common Restaurant Accounting Mistakes and How to Avoid Them

restaurant bookkeeper

These tools make it easy to pay your vendors and ensure timely payments that eliminate the potential for late fees. Our team of CPAs can provide accurate and reliable accounting and bookkeeping services tailored to your business’s unique needs. Say goodbye to the complexities of bookkeeping, and let us handle your financial records with precision and efficiency.

Choose the Right Accounting Method

This includes things like your restaurant building and the land it stands on. Because of this, you should always compare sales vs. COGS (Cost of Goods Sold) and labor ratios. Doing so helps measure how efficiently your restaurant is using its inventory. Ensure that you keep all receipts and invoices organized and record your transactions accurately. For this step, it can be helpful to hire a bookkeeper to do this for you so you can focus on other parts of your business.

Accounts Payable

You and your accountant will work on certain bookkeeping and accounting tasks together. You’ll also want to know enough about accounting to monitor financial KPIs that will help you make business decisions on the fly. Accounting software should integrate with other restaurant management software to improve workflow, prevent flipping between apps, and make data sharing easy.

Consider Outsourcing Payroll

restaurant bookkeeper

Inventory management