21 May Everything You Need To Know About Restaurant Accounting And Bookkeeping.
Restaurant Accounting And Bookkeeping. Long hours, high overheads, wasted material, and the difficulty of making a profit are some of the obstacles to the success of restaurant owners.
But for business lovers and those who dream of having a place where everyone knows your name, there’s no other opportunity like this.
Accounting is an aspect of restaurant management that is often overlooked. Unfortunately, it’s hard to keep up with restaurant billing.
The rate of return in the catering industry is too tight to pass bookkeeping. If you’re not observing your finances, it may be too late to solve the problem by the time you find them.
This guide will help you understand the basics of what a qualified accountant can do to help you develop your reporting and growth plans.
If you have a restaurant that already has a trained accountant, or if you are looking for a tax credit for the owner of the restaurant, it is important that the book is already up to date. Effective restaurant accounting and bookkeeping starts with you.
Whether you run your own accounting services or Outsource Restaurant Accounting And Bookkeeping. , it’s imperative that you keep track of your daily accounting to be ahead of the competition.
How do you manage Restaurant Accounting And Bookkeeping?
5 Simple Steps!
1.Record daily sales through POS
One of the first things to understand is how to properly record sales. Many people find using QuickBooks in a restaurant an effective records management system.
Record sales entries per day
Create a separate daily sales entry for each day (rather than monthly or weekly). This method mimics how cash and credit card deposits reach the restaurant’s bank.
Most restaurants accept credit cards and charge daily. This will deposit your credit card deposit into your bank account individually for each batch.It is necessary to analyze how the funds arrive at the bank and set up the restaurant’s accounting system to reflect this activity.
Generate a sales report
To keep track of your daily sales, you need to create a report that summarizes your sales.
Most restaurant point-of-sale systems have a built-in daily sales summary. If you need to customize the report to get more detailed information, you need to do it in your POS system.
Create a daily sales journal
Once you have a sales summary, you need to create a daily sales journal entry and create a transaction saved in QuickBooks.
2.Handling Accounts Payable
The next step in restaurant accounting and bookkeeping is to set up accounts payable. If you want them to continue to do business with you, it is important that your supplier is happy.
- First, learn how to enter and pay invoices in QuickBooks. Both are easy to do.
- Enter your invoice 12 times a week and pay once a week.
- If you create an invoice check, be sure to print the check from QuickBooks. This automatically populates your QuickBooks file with payment information, reducing unnecessary data entry.
- Another option is to pay your invoice with online invoice payment by linking your bank account to QuickBooks and signing up for online invoice payment.
- As a commercial enterprise owner, you’re in fundamental danger by doing all your personal payroll. If you incorrectly report your payroll taxes or report them late, the consequences and hobby you’ll be assessed may be pretty large. You are held at an excessive stage of legal responsibility in case you do now no longer outsource your payroll to an accounting firm.
- Outsourcing your payroll is exceptionally low cost and an important choice to make sure steady and dependable paychecks and accounting.
- Every small commercial enterprise ought to outsource its payroll.
Reconciling your QuickBooks account is the most important part of the entire accounting process.
Reconciling your account is the only way to know if you have recorded all your financial transactions. All accounts need to be matched, not just bank accounts.
You need to adjust your bank account, credit card, loan, line of credit, and unpaid wages.
Accounts that receive a statement with an opening balance and a closing balance can be adjusted. Account adjustments allow you to see accurate financial reports.
If you don’t use financial reporting for your restaurant, you are blindly running your business. Due to these tight margins in the hospitality industry, it is important to analyze financial reports on a regular basis.
Restaurants need to see the ratio of sales to cost of sales and the employment relationship. Another ratio that many restaurants should consider is prime cost. It aims to keep food + beverage + labor costs around 60% to 65% of total sales.
Other parts of restaurant bookkeeping include restaurant POS selection, inventory management, theft control, and cash handling.
However, the five easy actions outlined above will lay the groundwork for a robust bookkeeping system. As your business grows, you will need to adapt your bookkeeping system to match your changing demands.
As a business owner, you may want to take on all the roles. However, outsourcing restaurant accounting and bookkeeping services removes pressure and responsibility and allows you to focus on growing and managing your restaurant.
So, are you ready? Start planning for a financial consultation for your business.
Thakur Chabert is a leading London firm with a large staff of skilled and competent Accountants and Auditors. If you want accounting, bookkeeping, or auditing assistance, we are only a phone call away!