Top Accounting Tips for Restaurants and Cafés in Vancouver and the Lower Mainland
Stay updated with current accounting standards, business compliance, tax preparation tips, and latest news.
26 Jun 2025
Running a restaurant or café is tough. Between managing staff, suppliers, rising food costs, and customer expectations, the last thing you want to stress over is your books.
But here’s the reality: if your numbers aren’t right, your profits aren’t real. We’ve seen too many great local spots in the Lower Mainland struggle because of avoidable accounting mistakes. This blog is here to fix that.
Our team at CJCPA works directly with restaurant owners like you. Let’s walk through simple, clear, and effective restaurant accounting tips that actually help your finances.
Key Takeaways
- A proper accounting system can improve cash flow and reduce expenses.
- Tracking the cost of goods sold (COGS) and labor weekly helps you stay profitable.
- Choosing the right accounting method matters, especially for CRA compliance.
- Don’t rely on spreadsheets; use cloud-based tools built for restaurants.
- Outsourcing is often cheaper (and safer) than hiring in-house.
What Is Restaurant Accounting?
Restaurant accounting is how you track, analyze, and report your income, expenses, payroll, inventory, and taxes. It's not just bookkeeping, it’s the financial backbone of your business. Without it, you’re flying blind. With it, you get actionable insights like:- Are you making a profit or just covering costs?
- Is payroll eating into your margins?
- Can you afford to hire more staff or open another location?
10 Restaurant Accounting Tips That Actually Work
Use a Chart of Accounts
Break down income and expenses into categories like food sales, labor, rent, and taxes. It keeps things clear and CRA-compliant.Track Prime Costs
Your two biggest expenses, food and labor, should stay under 65% of your revenue. Monitor weekly, not just monthly.Separate Business and Personal Accounts
Mixing finances leads to messy books and potential CRA trouble. Keep them separate from day one.Reconcile Weekly
Don’t wait for the month-end to find problems. Reconcile your bank and POS systems every week.Go Digital
Use cloud-based tools like QuickBooks Online or Xero. They sync with your POS and save hours of manual entry.Set KPIs
Define and track metrics like food cost %, labor %, break-even sales, and table turnover rate. Numbers should drive decisions.Automate Daily Sales Reports
Connect your POS to your accounting software so that daily sales flow in automatically.Store Receipts Digitally
CRA audits happen. Keep digital copies of all receipts and invoices. Use apps that snap and file them instantly.Review Supplier Costs Regularly
Don’t set-and-forget vendor pricing. Reassess every quarter and negotiate where possible.Outsource When It Makes Sense
Hiring in-house accounting staff is expensive. Outsourcing often gives you better expertise for less.Start Tracking These 4 Things Monthly (Bonus Tip)
- COGS (Cost of Goods Sold)
- Formula: Opening Inventory + Purchases - Closing Inventory
- Keep an eye on waste and negotiate supplier deals.
- Labor Costs
- Include wages, taxes, and benefits.
- Aim to keep labor under 30% of sales.
- Payroll
- CRA expects timely filings and deductions.
- Use tools that handle T4s and direct deposit.
- Revenue vs. Expenses
- Track dine-in, delivery, and takeout separately.
- It helps you find what’s really driving profit.
