{"id":3515,"date":"2022-12-30T08:02:00","date_gmt":"2022-12-30T08:02:00","guid":{"rendered":"https:\/\/synder.com\/news\/?p=3515"},"modified":"2026-04-02T12:58:15","modified_gmt":"2026-04-02T12:58:15","slug":"guide-to-restaurant-bookkeeping","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/guide-to-restaurant-bookkeeping\/","title":{"rendered":"Running Restaurants: A Comprehensive Guide to Restaurant Bookkeeping"},"content":{"rendered":"\n
Learn how to handle and automate the bookkeeping process in the restaurant industry.<\/em><\/em><\/p>\n\n\n\n\n\n\n\n\n Restaurant bookkeeping can be intimidating even for experienced restaurant owners. There are so many things to keep in mind and so many important reports to maintain (profit and loss statement, daily sales report, cash flow report, balance sheet, and others). Many questions arise about restaurant accounting services, such as what is the difference between restaurant bookkeeping and accounting<\/a>? Which software is suitable for restaurants? What does the restaurant bookkeeping cycle look like? <\/p>\n\n\n\n One thing that makes it particularly tricky is that so many pieces are in motion. You often have to hire new people, track costs and inventory such as food, beverages, items of cooking equipment, employee uniform, etc., as well as account for damages which occur from time to time. But it\u2019s also incredibly important to maintain a healthy regular bookkeeping flow. <\/p>\n\n\n\n To help you take good care of your restaurant\u2019s accounts and streamline the process of managing your finances, we\u2019ve prepared a guide on the major aspects of restaurant bookkeeping. So in this article you\u2019ll learn about:<\/p>\n\n\n\n <\/p>\n\n\n\n 1. Restaurant bookkeeping tips: Accounting methods<\/a><\/p>\n 2. The basics: Bookkeeping reports required in restaurants<\/a><\/p>\n\t 3. Bookkeeping cycle in restaurants: What does it look like?<\/a><\/p>\n\t 4. Automating the routine: Restaurant accounting software<\/a><\/p>\n\n\n\n <\/p>\n\n\n\n This part will give you a comprehensive overview of restaurant accounting tips you should take into consideration when running a restaurant business. The big thing to cover right away is the accounting method which would be suitable for restaurants. According to Chron.com<\/a>, restaurants under $1M per year in revenue can choose their own small business accounting method and most often it would be the cash method<\/em>. Larger restaurants must use the accrual method<\/em> to comply with the IRS. <\/p>\n\n\n\n This restaurant accounting method is used to document generated income when cash is received to pay for services or to record expenses and costs that occur. A case for recording opens up every time cash is exchanged. Since in most restaurants, cafes, and bars services are rendered and paid for simultaneously, money isn\u2019t owed at a later stage, which makes this method so fitting. <\/p>\n\n\n\n One might consider choosing another method because a cash basis, while pretty straightforward, isn\u2019t always the most accurate accounting method for a restaurant. The problem is that it doesn\u2019t recognize delayed payments. For example, using the cash method you\u2019d account for the deliveries from your restaurant\u2019s vendors only when you pay for them. But many established restaurants have delivery accounts that allow them to pay their vendors long after the delivery has taken place. <\/p>\n\n\n\n If you follow a similar pattern, the cash method would inaccurately show that your restaurant has large sporadic delivery expenses, when in fact they might be smaller and more regular. <\/p>\n\n\n\n The accrual method is mandatory for restaurants with larger revenue and can be useful for smaller-scale restaurateurs that have delivery accounts, for which they pay after the delivery has taken place. The accrual method accounts for a restaurant\u2019s transactions as they occur. What it means is that expenses and revenue are being recorded at the time of the transaction. It doesn\u2019t matter when cash is actually exchanged or payments are made. <\/p>\n\n\n\n Using this method will allow you to see a more accurate picture of how expenses happen and income is generated. It also demonstrates the balance between your revenue and expense spending. <\/p>\n\n\n\n It\u2019s very important to consider the tips (separate from automatic gratuities<\/a>, which fall under a different IRS category) in the accounting process. Employees are required to report their tips to the restaurant owner, as it\u2019s considered employee income. They also have to pay taxes on them. So, while you don\u2019t need to report the tips as a part of your restaurant revenue and it can\u2019t be subject to withholding, they should be factored in. <\/p>\n\n\n\n There are several reports that accompany every restaurant business as they go forward trying to maintain a positive cash flow and the overall health of their business. Here are some of the essential reports that restaurants use in their bookkeeping process with an outline of what they\u2019re needed for.<\/p>\n\n\n\n To put it simply, this is the process of preparing financial reports in which an accountant usually follows the accounting cycle of business transactions. Restaurants often use the four-week accounting period instead of a monthly one, as days of the week tend to affect how the business is doing, which creates a 13-week bookkeeping cycle.<\/p>\n\n\n\n There are several processes your bookkeeper should focus on to keep your business running smoothly. A typical bookkeeping cycle would consist of:<\/p>\n\n\n\n Reconciling <\/em>in accounting means that you need to compare two sets of documents, usually a financial account statement and your company\u2019s financial spreadsheet, in order to make sure they\u2019re in agreement. It allows you to be aware of any incorrect deposits or discrepancies in data recording. <\/p>\n\n\n\n Payroll <\/em>is the compensation you need to pay to your employees for a set period on the agreed date. It tends to be quite complicated and time-consuming, and you might find yourself needing a professional to keep track of different salaries or hourly pay, hours, tips, taxes, and deductions. Using employee time-tracking<\/a> software specifically for restaurants will make the payment process fairer.<\/p>\n\n\n\n Accounts payable <\/em>is about short-term obligations you owe to your suppliers. Paying attention to accounts payable<\/em> and paying the bills on time is what helps you keep long-lasting working relationships with your vendors. <\/p>\n\n\n\n Managing a restaurant often requires the business owner to constantly attend to challenging tasks. You need to marshall all your resources in order to increase restaurant sales, boost your customer and employee retention rate, streamline restaurant operations, focus on inventory tracking, optimize the menu, etc. Hence, automating repetitive bookkeeping processes is crucial in order to free up as much expert time as possible for things that truly need your attention. Together with your bookkeeper, you can optimize this tedious labor by outsourcing it to business accounting software.\u00a0<\/p>\n\n\n\n Restaurant accounting software generates most essential reports. Among the most popular software solutions is QuickBooks Online<\/a>, which is a reliable easy-to-use software solution mainly for small and medium-sized businesses offering accounting applications that accept business payments, manage and pay bills, and payroll functions. <\/p>\n\n\n\n Pro-tip:<\/strong><\/p>\n\n\n\n Entering revenue transactions into an accounting system, as well as recording your expenses can be tiresome, that\u2019s why it\u2019s always better to automate. A lot of small businesses use a POS (point of sale) system which facilitates transactions in a retail company, be it in the food, clothes or restaurant industry. But even if you use a POS system like Toast<\/a> in your restaurant business, or Clover <\/a>for online orders for delivery, the payments might come in from different sources, such as Stripe, PayPal or Square. <\/p>\n\n\n\n To ease up the process of recording all transactions, you can enhance your QuickBooks experience with expert cloud-based software that fits small business, such as Synder<\/a>, which is a top-notch solution that brings automation to your accounting and saves you tons of time to focus on restaurant sales, upscaling your business, and increasing profit. If you connect your POS like Square or Clover, etc., or payment platforms like Stripe, Paypal, etc. to Synder directly, it\u2019ll automatically bring all data from POS and payment platforms to Quickbooks Online. Moreover, Synder features advanced settings and categorization rules that\u2019ll enable you to optimize the transferred data according to your particular accounting needs.<\/p>\n\n\n\n Here\u2019s a short how-to guide to setup the background automation of data recording:<\/p>\n\n\n\n You can also accept online payments in seconds via Synder (a useful option for restaurants would be creating an instant checkout<\/a> on your website for deliveries and your e-shop without needing any coding skills). <\/p>\n\n\n\n Check out our use case to find out what Synder can do to streamline restaurant bookkeeping<\/a>.<\/em><\/p>\n\n\n\n The life of a restaurateur can be quite hectic. You need to keep track of so many different things to get your business running smoothly. Staying on top of all bookkeeping issues is time-consuming and takes a lot of effort, so why not automate some tedious bookkeeping tasks? With Synder working for you in the background, you get all your transactions auto synced to your QuickBooks, which saves you a bunch of time for other restaurant operations that require your ultimate attention. Synder has tons of useful features and is bound to be the perfect fit for your restaurant business. Get a free trial<\/a> or book a demo <\/a>to make sure Synder is just what you\u2019ve been looking for. <\/p>\n\n\n\n <\/p>\n\n\n\n
Contents:<\/b><\/h3><\/p>\n\t
\n\t
Restaurant bookkeeping tips: Accounting methods <\/strong><\/span><\/h2>\n\n\n\n
Cash Method<\/strong><\/span><\/h3>\n\n\n\n
Accrual Method<\/strong><\/span><\/h3>\n\n\n\n
Tips<\/strong><\/h3>\n\n\n\n
The basics: Bookkeeping reports required in restaurants <\/strong><\/span><\/h2>\n\n\n\n
<\/figure>\n\n\n\nBookkeeping cycle in restaurants: What does it look like?<\/strong><\/span><\/h2>\n\n\n\n
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Reconciliation<\/strong><\/h3>\n\n\n\n
Payroll<\/strong><\/h3>\n\n\n\n
Accounts payable<\/strong><\/h3>\n\n\n\n
Automating the routine: Restaurant accounting software<\/strong><\/span><\/h2>\n\n\n\n
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Closing thoughts <\/h2>\n\n\n\n