Murray Hill, NY New York, NY Manhattan QuickBooks® Accounting Services & Sales PL Accounting Solutions Restaurant

Paying your employees is likely to be one of your business’s most complex and important tasks. Employee payroll is subject to regulations on tip reporting, payroll taxes, Medicare taxes, Social Security, and state unemployment. The level of liability for restaurant owners doing payroll on their own can be very high because filing the payroll taxes incorrectly or late can lead to steep penalties. Recording daily sales and categorizing them by cash and credit sales, food versus beverage, or other metrics is vital for understanding your revenue streams.

The daily sales report is your quintessential end-of-day report that measures costs, sales, and future sales. Revenue (sales, tax, tips, and credit card fees) are reconciled against settlement (accounts receivable, cash and credit card deposits, discounts and coupons, gift certificates redeemed). The result is either cash over or short – but in an ideal world, you’re at zero.

Which restaurant accounting method should you use?

For smaller and medium-sized food establishments we can also serve as an outsourced CFO or controller. The New York City restaurant dining and beverage industry is fiercely competitive, and restaurant owners and hospitality bookkeeping for restaurant groups face a diverse range of complex regulatory and accounting challenges. As a restaurateur, hotel, or food and beverage operator, you know that the guest’s experience with your brand has a direct effect on your success.

When cash comes in, it’s called “cash in” or “inflow.” When cash goes out, it’s called “cash out” or “outflow.” Cash flow statements list the state of your operations, investments, debt, and financing. You and your accountant can use your P&L to review the total revenue and expenses of your business over a period of time. You and your accountant will work on certain bookkeeping and accounting tasks together.

Restaurant Bookkeeping 101: A Guide to Accounting Basics

However, if you invest a little bit of time researching and planning how best to set up and manage your restaurant accounting, it will become a much more manageable process. Partnering with an accountant can also help ensure your restaurant complies with regulatory requirements, such as taxation and minimize errors to improve the accuracy of your financial reporting. There are two primary accounting methods that restaurants can use; the cash accounting method and the accrual accounting method.