restaurant bookkeeping software guide

Even once you’re established, it’s still worth exploring new ways of managing your accounting and finances. This can be as simple as consulting a bookkeeper / accountant or launching a trial with FreshBooks. Sourcing and implementing a system that works for your restaurant is always important.

At the same time, purchases refer to the supplies you purchase in food and beverage orders. Final inventory is the number of supplies you have left when your defined tracking period is over. Overhead rates are fixed costs of running your business, such as rent and insurance. This will give you an insight into how much your business costs to run.

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Talk to your bookkeeper or accountant to find out which one best suits your business. Whether you’re coordinating ‌floor staff or checking inventory levels, Lark bridges the gap between your storefront and HQ, giving you more efficiency and control over your restaurant. While the terms “bookkeeping” and “accounting” are often used interchangeably, they aren’t the same.

Make it easier for production and supply staff to communicate their availability and time off with our software. Access Xero features for 30 days, then decide which plan best suits your business. Juggling reservations, staff schedules, and daily specials can be overwhelming. While each accounting system is different, they often share a range of similar features and benefits that are designed to streamline your accounting. Once you’ve identified areas to focus on, you’ll need to set specific and measurable goals, also known as SMART goals. Restaurant accounting is an essential part of running a business and has several benefits.

Why prime cost matters

For quick-service restaurants and food trucks, this range increases to 6 to 9 percent. Overhead is the monthly fixed rates that it costs to run your business. To calculate overhead rates, the total fixed costs are divided by total operating hours. A restaurant owner should constantly monitor cash flow, which restaurant bookkeeping is the money coming in and going out of your restaurant. This includes making sure there is always an emergency fund set aside for unexpected expenses like equipment breaking and needing to be replaced. A balance sheet spells out the restaurant’s equity, liabilities, and assets during a specified time frame.

  • Final inventory is the number of supplies you have left when your defined tracking period is over.
  • You may also need to consider the cost of credit card processing if you expect to offer customer payment options through your accounting software.
  • 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.
  • Download our free playbook and learn how to build a more resilient business post-pandemic.
  • For a more comprehensive toolkit, the full Sage Accounting plan lets you forecast cash flow, handle purchase invoices and much more.
  • Finding a bookkeeper who understands the complexity of the food and beverage industry, both front-of-the-house operations and back-of-the-house management.

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. This key figure will indicate how efficiently you are controlling your inventory and pricing your items. Keeping track of this indicator will help you reduce and stabilize your inventory costs. If you didn’t track sales, then you wouldn’t have a clue as to how your restaurant is performing financially. In addition, keeping track of revenue will give you a better picture of what source is the most profitable and bringing in the most money.

How do restaurants maintain accounts?

It is best to outsource the payroll function or use payroll software to do the work for you. The first-in, first-out (FIFO) method is widely considered the best way for restaurants to value inventory. Because restaurants often turn over perishable inventory quickly, it makes more sense to use a method that links inventory to its original cost.