What Does a Bookkeeper Do in a Restaurant

For the breakeven point, subtract variable costs from the price and then the fixed costs are divided by this amount. To make a profit, you want your revenue to come in higher than your expenses. Cost of Good Sale (COGS) is the actual cost that goes behind producing what you sell.

The company’s primary goals are to make managing your restaurant easier, make more money, and deliver a positive experience to your customers. We reviewed a dozen leading small business accounting software programs and chose the best for restaurants based on features, price, ease of use, and integration options. Financial software is designed to make restaurant bookkeeping simpler and more efficient for you as the business owner.

Using the wrong accounting period

Keep tabs on your revenue and use your accounting records to figure out how much you earn from food sales, merchandise sales, catering jobs, and more. Pinpoint how much revenue you make on a daily basis and then break them further into categories. It’s a good idea to set up an inventory management system that reduces waste and optimizes food cost.

The $12/month plan is called Early and includes 20 invoices, five bill entries, reconciles bank transactions and captures bills and receipts. Fred Decker learned business fundamentals at second hand as an insurance and mutual funds broker, and https://adprun.net/bookkeeping-for-truck-drivers/ at firsthand as a retail store manager and the chef/proprietor of his own restaurants. He has written hundreds of business-related articles for sites including Zacks.com, Chron.com, Vitamix.com, Bizfluent and GoBankingRates and many others.

What’s the difference between bookkeeping and CPA services?

So it’s understandable if ‘the other stuff’ in the business—like accounting and bookkeeping—doesn’t get you as motivated as your big passion. If you want to automate all the above steps to create a daily sales journal in QBO we highly recommend taking a look at Shogo. We have been using Shogo for years to automatically create the daily sales journal from various restaurant POS systems to QBO. You need to analyze how funds are hitting your bank and set up your restaurant bookkeeping system to mirror that activity.

A Self-Employed plan includes tracking for miles, income, and expenses, capturing and organizing receipts, estimating quarterly taxes, invoicing clients, accepting payments, and running basic reports. However, QuickBooks has a variety of plans that offer different features depending on your business structure. You can contact them via phone or through their site to discuss your business needs and budget. Between managing staff, inventory, guests, and your books, there are hardly enough hours in the day. We’re here to help with the bookkeeping side of things, and that includes sharing this step-by-step guide for bookkeeping for restaurants.

e. Food sales

Download this free balance sheet template to track your restaurant’s assets, liabilities, and equity. A restaurant balance sheet lists your assets, liabilities, and equity. Assets are things you own, like equipment, inventory, and straight cash.

Once you can anticipate your busy times, you can schedule your staff members accordingly. We use ADP’s payroll service and recommend it to most our clients. You can upload your Can A Virtual Assistant Do Your Bookkeeping? invoices to these services and they will code them by item to your various COGS and expense accounts. Additionally, they allow you to approve invoices that you want to be paid.

Create a Profit and Loss Statement

Your accounting system organizes and tracks financial information. Here is the ultimate list of restaurant business KPIs you’ll lose sleep over. Payroll is responsible for calculating and distributing employees’ paychecks. Payroll also keeps a financial record of deductions, bonuses, vacation, sick time, and overtime.

Prime cost accounts for all your labor costs and your cost of goods sold. For every dollar you earn, the prime cost is the amount of that dollar that goes to labor (your staff) and product (food items). Account reconciliation confirms that you’ve accounted for all transactions and that the amount of cash in your account is correct. Modern accounting software can easily automate the account reconciliation process.