Restaurant Accounting: Two Restaurant Bookkeeping Methods

restaurant bookkeeping tips

Accounts payable include other debts, such as outstanding utility bills or rent payments. Fixed costs are easy to calculate because they don’t fluctuate much monthly.

restaurant bookkeeping tips

Unless you’re lucky enough to own space and your own equipment outright, you’ll need to pay for your infrastructure. Beverages are another expense, but the good news is that liquor is a great way to boost your profit margin. Chances are you’ve noticed this already if you’ve ordered a bottle of wine. The same bottle that costs $15 in your local liquor store could cost $30 or $45 when you’re out.


If a restaurant is run well, prime costs should stay around 60% to 65% of sales. Each of these numbers need to be accounted for when running your restaurant.

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Regularly Update Your P&L

The level of liability for restaurant owners doing their own payroll can be high because filing payroll taxes incorrectly or late can lead to steep penalties. Restaurant bookkeeping can quickly become too complex for restaurant owners to handle. If you are not confident in your ability or lack the time that’s needed for accurate and thorough bookkeeping, consider hiring an accountant. Depending on your sales volume and the tasks you need help with, your bookkeeper may only work on your records a couple of hours a day or week. Ideally, you’ll want a bookkeeper who is familiar with the restaurant industry.

To make it easier for you, here we have some restaurant accounting tips for you to look at so that next time the accountant comes, you know your end of information thoroughly. Though paying employees may seem like a simple task, it’s actually very complex. Employee payroll is subject to regulation about tip reporting, state unemployment, payroll taxes, Social Security, and Medicare taxes.

Consider Outsourcing Payroll

You’re in the business of making food and entertaining customers, not crunching numbers. It’s not enough to ensure all your transactions and expenses are accounted restaurant bookkeeping for. Over time, all sorts of minor errors or discrepancies can cause significant issues and could become a serious problem if the IRS ever audits you.

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