However, if you need in-depth accounting services, you will need to integrate with QuickBooks or choose another restaurant accounting software. Modern POS systems can automate this process and generate https://simple-accounting.org/how-to-do-accounting-for-small-business-basics-of/ daily sales reports that provide real-time data. Accounting software can seamlessly aggregate your chart of accounts for you and populate key financial reports with accurate information.
You need to know what you’re spending, what you’re earning, and whether you’re turning a profit. Without these key pieces of information, you can’t expect to run a restaurant successfully. In this case, that means finding a bookkeeper with plenty of experience working with restaurants. The right bookkeeper for your restaurant will be familiar with FOH and BOH operations and how to optimize your books for your business. 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.
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Accounts that require reconciliation include loans, lines of credit, credit cards, bank accounts, and payroll liabilities. It’s a necessary process that ensures that nothing is left unaccounted for. Can A Virtual Assistant Do Your Bookkeeping? Whether you’re running a small cafe or an upscale restaurant, you need a POS system for order management, back office-reporting, cash management, inventory management, and sending receipts.
It’s a tool for a valuing a restaurant and gauges a restaurant’s earning potential. Your breakeven point represents how much revenue you need to earn to cover your expenses. Luke O’Neill writes for growing businesses in fintech, legal SaaS, and education.
Restaurant Bookkeeping vs. CPA Services: What You Need to Know
Once you’re behind on your restaurant accounting, it is difficult to get caught up. On the topic of taxes, a restaurant bookkeeper will also tally the sales tax owed by your business so that you don’t accidentally overlook those requirements either. Total sales per head comes in handy when you’re tracking trends, mealtime averages, or exploring marketing strategies. To calculate total sales per head, take the total sales and divide that number by the number of customers.
- Key reports such as profit and loss (P&L) statements and prime cost (food and labor costs) provide valuable insights into your restaurant’s performance.
- When you have grown to the point where it is no longer feasible for you as the owner to keep the books, you need to know what to look for in a bookkeeper or bookkeeping service.
- Record a separate daily sales entry for each day (not monthly or weekly).
- Inventory management is the process of determining how much of each item needs to be available for each shift, using products before they spoil and reordering as necessary.
- Account reconciliation confirms that you’ve accounted for all transactions and that the amount of cash in your account is correct.
- If you’re working with a firm, you can control accounting costs by ensuring that junior accountants handle the menial tasks, and your CPA completes the hard analysis.
- It’s not solely made for the restaurant industry but has helped many restaurant owners.