Restaurant Bookkeeping and Accounting Explained
Managers and supervisors may receive tips in certain situations, but only if that tip is paid to them directly for services they solely provided. Managers, supervisors and owners are also prohibited from participating in tip pools. Even though they are employees of the restaurants, they are not customarily tipped employees and therefore cannot take part in a tip pool arrangement.
- Staying on top of your spending costs, inventory, and revenue is key to turning a profit.
- For example, if your restaurant has $3,000 worth of inventory on hand at the beginning of the week and purchases another $2,000 of food products, you have $5,000 worth of inventory.
- That means you will be charged 5% on all sales made during, for example, the month of May.
- Not only do you need to have a good point of sale system, but it is also important that you track and take advantage of the data that comes from your point of sale system.
Keeping track of your revenue is important to restaurant bookkeeping. Use the accounting records on hand to show how much you earn from food sales, merchandise sales, or catering jobs. Find out how much revenue you make each day and ideally break them further into food and beverage categories. The tips are usually received from customers to the company bank account through credit cards or other types of payment. They have to keep the cash in one account and pay employees on a monthly basis.
Tip management with restaurant accounting software
By integrating A/P software, you’ll be able to link your business account with the application. You can add a vendor, input the payment date and amount, and enter the category for each transaction. Your software will alert you when a payment is due, and in many cases, you’ll be prompted to authorize the payment and deposit the amount directly into the vendor’s account.
Next, you need to anticipate your inventory requirements and changes when you own a restaurant. This will help you ensure that your restaurant is never understocked or overstocked. This will make it easier to update your restaurant strategy and cut unnecessary expenses. Taking a half hour every other day impacts your busy schedule less than an hour-and-a-half every week or three hours every two weeks.
Expert-approved Restaurant Bookkeeping Tips
With so many different moving parts, handling the bookkeeping for a restaurant can be complicated. It’s a good idea to consider outsourcing your books to an outside bookkeeper who can help you stay compliant and on top of your finances. A good POS system though will allow you bookkeeping for restaurant to track labor costs, inventory counts and different methods of payment as well as generating sales reports. Choosing the right POS system forms a link between the front of house and the back of house accounting system, making your daily invoicing much more facilitated.