A Guide to Restaurant Bookkeeping
Stay updated with current accounting standards, business compliance, tax preparation tips, and latest news.
06 Feb 2023
A restaurant can be a hectic place. Running tirelessly between the front and the back of the house focusing on crowds of hungry patrons, planning menus and specials, continuous efforts to provide the perfect taste, ambiance, and an unforgettable experience to the customers, managing high overhead, wasted ingredients, etc, are some of the everyday challenges of restaurant owners.With so much going on, bookkeeping is often overlooked or deferred for a later date. Unfortunately, when bookkeeping is left behind, catching up becomes both tough and expensive. Restaurant profit margins are too tight to let bookkeeping lapse. Deferring bookkeeping leads to chaos and confusion and inaccurate records that can be difficult to rectify. On the other hand, missing a declaration of correct revenue can lead to tax penalties and more.Bookkeeping can help restaurateurs create a strong foundation for effective business decisions and keep overhead costs in check which means more funds for new dishes, better decor, marketing initiatives, etc.Here are a few useful tips to keep your restaurant bookkeeping organized.
- Record Restaurant Sales Daily
- Catering Job
- Track Restaurant Expenses
- Streamline Restaurant Payroll Processing
- Reconcile Restaurant Accounts
- Analyze Restaurant Financial Reports
- Profit & Loss statement (P&L) — A P&L provides an overview of all expenses and revenues. This report provides details of revenue, labor cost, food and beverage, and other operational expenses.
- Cash Flow Statement — With a cash flow statement restaurateurs are enabled to view the amount of cash that comes into their restaurant vs the amount that goes out. This report will inform you of the amount of cash you have on hand.
- Balance Sheet — A balance sheet lists your assets and liabilities to show your business's worth or total equity. Assets include everything you own, including equipment, cash, and inventory while liabilities are any debts you owe money on such as outstanding vendor invoices or unpaid loans. Total equity is the difference between assets and liabilities. Ideally, you want more assets than liabilities on your books.