As you grow you will have to continually modify your bookkeeping system to meet your needs. POS systems connect every point of your business – from inventory to sales – and can integrate with accounting packages like MYOB and Xero. This means you can easily pull reports for specific periods (day, week, month, year etc.) on your COGS, sales, stock on hand, accounts payable, labor costs… the list goes on. When it comes to restaurant accounting, the chart of accounts categorizes the money you spend and receive.

Choosing Accounting Software for Restaurants

You need to analyze how funds are hitting your bank and set up your restaurant bookkeeping system to mirror that activity. Long hours, high overhead, wasted ingredients, and difficulty making profits are some of the barriers to success for restaurant owners. Inventory turnover for most restaurants should be very high because you’re keeping the food fresh. “The food is normally purchased on a weekly basis and many times more than once per week depending on the types of food being sold in the restaurant.

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You may determine if any payments are due, submit them, and record them in the financial ledger. As a bookkeeper, you may also receive client payments and deposit them at your company’s financial institution. Bookkeepers play a vital role in the business accounting cycle by collecting and inputting data.

Select a POS System

Now that you have Shogo connected to your POS, it’s time to plug it into QuickBooks Online, or your preferred accounting system. So, for this example, we’ll utilize Toast, although the setup process will more than likely be similar or the exact same for the rest of the systems. One of the first items you will have to figure out is how to properly record your sales. Many find using QuickBooks for restaurants is an effective recording system.

It’s important to have an overarching financial plan before you get started with restaurant bookkeeping. A financial plan will help you stay organized and track your financial progress and metrics. Budgeting enables you to set financial goals, allocate resources effectively, and control costs. Forecasting allows you to anticipate potential challenges and plan for the future, ensuring your business remains resilient and adaptable. Depending on the needs of your restaurant and the number of bills that you process, there’s a variety of A/P software programs that may be able to assist you.

Use accounting software

The more you can monitor the financial health of your restaurant, the better. MarketMan can level up your operational workflow by seamlessly integrating your bookkeeping, POS and inventory management solutions. Ideally, labor costs should take up less than 30 percent of the revenue according to industry standard. However, it depends on the type of restaurant you run, as costs may be higher or lower. To calculate the costs, divide the staff into groups of back-of-house and front-of-house and figure out which group is costing you more.

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Every location they had has its own version of generating projections and forecasts, including labor costs and productivity. This means choosing lower-cost materials or finding alternatives that won’t compromise the quality of bookkeeping for restaurants your food. Study carefully which aspect of your restaurant business incurs unnecessary costs and remove them completely. Your aim is to keep your labor + food + beverage expenses at approximately 60% to 65% of the total sales.

For example, you might need to reconcile your bank statements and credit card bills with the financial reports generated by your POS system. In this guide, we will walk you through essential bookkeeping practices specifically tailored to cafes and restaurants. A POS system does a lot of heavy lifting in a restaurant, but it’s prone to user error. When you enter menu items into your POS, check that they’re coded correctly to ensure accurate food and beverage costing, but even more so for tax tracking. You can reconcile your accounts by taking a look at all your financial statements. Compare these to bank statements, credit cards, and all other financial transactions.

Lastly, the Dublin Tech Summit takes place May and features speakers from big name companies like Microsoft, Logitech, Oculus, Pinterest and many more among its keynote line-up. Tickets are at the relatively affordable end of the spectrum at a few hundred bucks and there’s a dedicated track for startups. Assuming you can convince your boss to let you register, get ready for an action-packed three days in sunny San Fran. Last year, RSA welcomed more than 40,000 attendees and 500 exhibitors, featuring no less than 650 speakers across 400 different keynotes. For something more lowkey and strictly B2B focused, the London Tech Show takes place in the UK capital on March 6-7.