restaurant bookkeeping templates

With such tight profit margins in the restaurant industry, it is important to analyze your financial reports on a regular basis. Restaurants should be looking at sales vs. cost of goods sold ratios as well as labor ratios. Another ratio many restaurants should consider is the prime cost, which aims to keep the cost of food + beverage + labor at roughly 60% to 65% of your total sales. bookkeeping for restaurant Restaurant accounting software is specifically designed to help restaurants manage their financial transactions. Apps typically include features such as sales tracking, expense tracking, and financial reporting, making it easy for restaurants to stay on top of their accounting. When it comes to restaurant accounting, the chart of accounts categorizes the money you spend and receive.

  • If you’re looking to improve your food cost percentage, use our free food cost calculator to analyze your current margins and calculate improvements.
  • Download this free balance sheet template to track your restaurant’s assets, liabilities, and equity.
  • By constantly looking at your controllable costs, you’ll spot when something isn’t looking right early and make the necessary changes before it eats away at your profit.
  • P&Ls provide an overview of your restaurant’s revenue, costs, and expenses.
  • Another way to ensure accuracy is to reconcile your books regularly.
  • Your financial forecast gives you a rough estimate of how much revenue you’ll generate in the future.

Food costs depend on the type of restaurant, but normally are around 28-35% or revenue. Will your wait staff work for tips, or will you add gratuities to every bill? And if you hire full-time wait staff, you may also need to furnish benefits. Many restaurants rely on part-time or seasonal employees to avoid this expense. Once you can anticipate your busy times, you can schedule your staff members accordingly.

Using the wrong accounting method

The chart of accounts records high-level transactions like revenue, expenses, assets, liabilities, cost of goods sold, and equity. Each of these buckets is further categorized into smaller ones, such as meat costs, alcohol costs, staff wages, marketing, utilities, laundry, etc. The daily sales report is your quintessential end-of-day report that measures costs, sales, and future sales. Revenue (sales, tax, tips, and credit card fees) are reconciled against settlement (accounts receivable, cash and credit card deposits, discounts and coupons, gift certificates redeemed). The result is either cash over or short – but in an ideal world, you’re at zero.

After the first review, the restaurant chart of accounts can be quite overwhelming, but don’t fret! Remember that the goal is to keep the income statement on one page so you can quickly review the financial performance of your business. Most accounting software comes preloaded with a few different chart of account templates.

How to Reconcile Your Accounts

Depending on the level of detail put into creating the P&L will determine the value obtained from it. I have even seen some restaurants make Payroll a subaccount of COGS. Just make sure you keep a Payroll parent with the subaccount breakdown. You might also want to check with your CPA to make sure they are ok with this change. Now you can type in profit and loss or find it under the business overview section. If you are looking for a cloud-based accounts payable system we would highly recommend Bill.com.

restaurant bookkeeping templates

FreshBooks offers a balance sheet, general ledger, COGS report, Account Payable, Chart of Accounts, Journal Entries, and access to professional accountants ready to tackle any problems that arise. You’ll have access to the metric that matter and be able to reconcile books quickly and efficiently. Check out all of the available accounting software products available on FreshBooks.

We are here to help your restaurant businesses grow

From sales tax audits to menu engineering to capital structure, Bookkeeping Chef is the ideal tax partner to outsource some of your core accounting and financial management duties. For smaller and medium-sized food establishments we can also serve as an outsourced CFO or controller. So, when you are selecting a restaurant CPA firm, it is recommended that you look for a firm that has hospitality expertise alongside an intricate understanding of restaurant-specific accounting nuances. At Bookkeeping Chef, our experienced team of restaurant consultants offers a complete menu of services that will help your independent restaurant to minimize tax liabilities and maximize cash flow. In addition to providing outsourced bookkeeping and payroll services, we also have a full a service tax, accounting division to help you keep more money in your pocket and less in Uncle Sam’s.

One of the best ways to optimize your restaurant accounting is to employ restaurant accounting software and ensure it integrates with your point of sale (POS) system. While the accrual method can be more complex and time-consuming, it gives a more accurate picture of a restaurant’s financial health as it considers current and future obligations and revenue. Modern POSs leverage data analysis tools to give you additional reporting insights into sales by section, voids, and staff activities so you can assess staff performance and cut costs. This method reports income as it’s earned and expenses as they appear.