How to Do Bookkeeping for a Restaurant

Accurate bookkeeping is the only way to know if your restaurant is successful.

Setting up a bookkeeping system for a restaurant can involve a variety of modules, designed to handle the different aspects of the business. While these modules combine to offer a comprehensive view of a restaurant's financial condition, each requires individual attention. In some cases, bookkeeping for a restaurant can be managed on paper or with the aid of simple spreadsheets. For larger or more complex operations, computer-based accounting software or outsourcing may be necessary to meet the reporting and legal obligations of the restaurant.

Instructions

1. Set up the various bookkeeping modules necessary to handle accounting for the restaurant. Common modules include a basic cash flow register, food cost and inventory worksheet, income register, bar and beverage cost worksheet, tipped employee records, payroll records and petty cash register. These records can be created on paper or with a basic computer spreadsheet program. If using a packaged computer accounting system, these modules should already be set up.

2. Take inventory. A physical inventory should include fixtures, furniture, plates, flatware, glasses, stoves, kitchen equipment and any other restaurant asset. This information will be entered into the bookkeeping system to help establish net worth and liability. An inventory of all perishables, including food and beverages, can be used to establish a working inventory, as well as food and beverage costs.

3. Set up payroll and tax records. These records should include a method of accounting for employee work hours, calculating pay due to employees, calculating deductions for benefits such as insurance or 401K plans, accounting for tips and withholding for taxes. Many of these forms are available from the Internal Revenue Service or are automatically generated in most restaurant accounting systems.

4. Prepare long-term bookkeeping records such as a profit & loss statement, quarterly tax payments, insurance payments and capital expenditures for year-end tax preparation.

Tips & Warnings

• Some computer accounting programs offer a menu item cost, using the cost of each item's ingredients.

• Calculate food and beverage costs on a weekly basis to keep costs in line.

References

• Food Service Warehouse: Basic Restaurant Accounting
• The International Guild of Hospitality and Restaurant Managers: Templates for Management
• IRS.gov: Employment Tax Forms

Resources

• Food Service Warehouse: Restaurant Management & Operations