With restaurant accounting, you can track your expenses and classify them into several categories. If you invest in accounting software for restaurants, it will help you set up an appropriate chart of accounts for your restaurant. 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.

Enhance efficiency through defragmentation of systems and reductions of overhead with direct data mapping. Many or all of the products featured here are from our partners who compensate us. This influences which products we write how to do bookkeeping for a restaurant about and where and how the product appears on a page. We believe everyone should be able to make financial decisions with confidence. Your days of hastily writing catering invoices on the back of napkins are long over.

How to Track the Restaurant’s Flow of Funds

You can use restaurant accounting software to manage all your bookkeeping needs, such as creating professional invoices, managing cash flow, and tracking time. Restaurant365 is an all-in-one restaurant management solution that includes accounting functionality. It handles accounts payable and accounts receivable, budgeting and forecasting, bank reconciliations, and real-time financial reporting. Restaurant365 takes labor data from the point of sale system to send to your payroll processor.

• One of the perks of the software is that it integrates with TouchBistro, one of the leanest restaurant management POS systems out there.
• In fact, accounting software in restaurants has seen a 21 percent rise in popularity since 2018, second only to POS technology and payment processing.
• It is recommended for smaller restaurants to go as far as keeping track of sales in a spreadsheet after each shift in addition to at the end of the day.
• We ensure that our clients are always assisted in a timely manner so they can get back to their restaurants and focus on revenue-producing activities.
• It’s crucial to regularly review your financial reports to track the progress of your initiatives and ensure they’re positively working towards your goals.
• Outsourcing can provide access to accounting professionals with a range of skills and knowledge in the hospitality industry.

It’s essential to regularly track and update your P&L every month, quarter and year. This will help to highlight how your restaurant is performing and to see if any new initiatives have positively or negatively impacted your finances. If you’re looking to improve your food cost percentage, use our free food cost calculator to analyze your current margins and calculate improvements.

Unlimited accounting, 100% free.

With accounting software in place, the process of setting competitive prices is made easier. You can generate automatic reports with the software, and estimate the impact that different pricing levels will have on your profitability. This allows you to choose the most appropriate prices to run a profitable business.