Key Features of Restaurant Accounting and Bookkeeping Software

The top-tier plan is the Established plan, which costs $65 per month and also includes multi-currency reports, expenses, and project management. For more information on specific plans and pricing, contact Xero online. We chose Xero as our restaurant software with the best features because of the sheer number of useful tools. The program’s features are easy to use, including integration with payroll services, a mobile app, and real-time reporting.

The chart of accounts is a listing of all the five categories of accounts that compose the income statement and the balance sheet. These accounts are assets, liabilities, owner’s equity, revenue, and expenses. Money flows in and out of these accounts during the normal course of business. When you either spend money or earn money, you debit and credit these accounts appropriately according to accounting principles. It’s an all-in-one platform for running the restaurant that includes a POS system, accounting system, employee scheduling, time tracking, inventory management, and payroll. The cash accounting method the easier one for restaurants, but not always the most accurate.

Create a Profit and Loss Statement

BookKeeping Express will manage your finances so you can focus on what you do best. Depending on your budget and personal preferences, there are many proven ways to keep your books. I just started selling beer so I wanted a logo cup in a specific size.

• Look for someone with knowledge of your local laws and experience in the restaurant accounting niche.
• Here is a list of the reports you’ll need for your restaurant accounting – and what they ultimately show you.
• If you are not confident in your ability or lack the time that’s needed for accurate and thorough bookkeeping, consider hiring an accountant.
• You are held at a high level of liability if you do not outsource your payroll to an accounting firm.
• As a restaurant owner, you spend your days dealing with inventory management, staffing, and controlling the cost of goods sold.
• The chart of accounts records high-level transactions such as assets, expenses, liabilities, revenue, equity, and cost of goods sold.
• How much easier would your life be if the two systems worked well together?

Your FOH staff will be using your POS system, which means they need to process transactions correctly and report their tips. Although tips are not subject to withholding and not classified as restaurant income, they need to be reported and taxes paid on them. Make sure everyone is responsible for reporting the right information. Even in small businesses, restaurant accounting is a function that requires the contribution of several players. It requires the cooperation of several teams working on different areas of your restaurant. However, you need to retrieve information from the team to ensure accurate information is recorded and accounted for. Although accounting for restaurants is a topic that many restaurateurs try to avoid, it is an essential element of running a business.

What Does Restaurant Accounting Include?

This feature is an extremely generous incentive to offer in accounts payable software. The dashboard provides transactions in real-time at a glance, so you can make informed business decisions quickly. This software application is easy to set up and easy to navigate. It’s restaurant bookkeeping very intuitive and takes very little training to learn. It’s easy for staff to use, go in and change orders, and revise menu items. Restaurant365 is an excellent option for any type or size of restaurant. It’s a comprehensive platform with restaurant-specific features.

Prime cost is a summation of all your labor costs and your cost of goods sold. Paying your restaurant staff, including front-of-office staff and kitchen crew, is part of your labor costs. Based on the size of your restaurant, you can set up an inventory management system that optimizes food costs and reduces waste. The inventory also helps you avoid food shortages and surpluses. Effective accounting for restaurants is one of the most important aspects of making your business successful. Since the profit margins in restaurants are slim, keeping a watchful eye on the bookkeeping process is important.

A Beginner’s Guide to Restaurant Bookkeeping and Accounting

You don’t have to spend a lot of time trying every feature of the application. Just enter a few transactions and see if things make sense to you. We’ll delve deeper into the food inventory and food cost ratio in a section below. For now, it’s important that you keep track of daily food sales, food purchases, and any inventory on hand. Use payroll accounting software to calculate pay and deductions, pay restaurant or hospitality staff in all 50 states, and update the Xero accounts. When you manage a successful restaurant, data is coming from everywhere and it is important to understand it so that you can successfully develop your business. You have incoming and outgoing data about sales, accounts , invoices, pending bills, inventory, upcoming orders and deliveries, and a lot more.

Lavu’s POS system has an open API that allows forintegration with accounting software, such as QuickBooks. If you’re not looking to spend hours going through spreadsheets and formulas, then this integration will simplify the accounting process for you. Managing your inventoryprovides valuable insight about the restaurant’s COGS. Your accountant can use your COGS to determine where you’re spending too much on food, if you’re ordering too much, or if someone is stealing. Depending on your restaurant’s financial situation, you may or may not have a choice when it comes to the accounting method.