Because of this, they require specific accounting methods and benchmarks that wouldn’t apply to, say, a retail store. At first, restaurant accounting can seem like a daunting and time-consuming prospect. However, if you invest a little bit of time researching and planning how best to set up and manage your restaurant accounting, it will become a much more manageable process. Partnering with an accountant can also help ensure your restaurant complies with regulatory requirements, such as taxation and minimize errors to improve the accuracy of your financial reporting.
If your POS system is fully integrated with your accounting system, you can automate payroll data collection and reduce any errors due to manual entry. Recording daily sales and categorizing them by cash and credit sales, food versus beverage, or other metrics is vital for understanding your revenue streams. Accurate sales tracking is the foundation of effective bookkeeping. This method reports income as it’s earned and expenses as they appear. Under accrual accounting, CoGS is recorded as inventory is used, not when the suppliers are paid.
Figures to track
Finally, make use of technology to help you with restaurant bookkeeping. There are many software programs available that can make the process easier. These programs often come with templates and tutorials that can walk you through the process step-by-step. There are many software programs available that can make restaurant bookkeeping easier.
To miskey numbers when you’re entering row upon row of data is also human. So is failing to recognize meal discounts or mis-logging restaurant bookkeeping sales as revenue. When you enter incorrect information into your books, you’re also skewing financial reports and KPIs.