Accurate restaurant accounting has a multitude of benefits for the success and growth of your business. Accounting leads to better financial management, deeper insights into your business’s financial status, better tracking of cash flows, and a more robust system of tracking inventory. You’ll also learn to take control of your prime costs and adjust menu pricing based on demands and inventory costs. Keeping these books for your restaurant straight, current, and accurate is crucial to the financial success of your business. You can use restaurant accounting software to manage all your bookkeeping needs, such as creating professional invoices, managing cash flow, and tracking time. With restaurant accounting software, you can create financial statements, like income statements, cash flow statements, and balance sheets.
As they say in the business industry, leverage your strengths and outsource your weaknesses. On the next screen simply add the ending balance and ending statement date from the statement you are reconciling. Both XtraChef and MarginEdge allow you deeper COGS and financial insights and controls directly in your POS system. You should see the information for your QBO account and can change any information through settings.
Connecting Shogo to Your POS System
We offer our toolkit of financial intelligence that will be your greatest asset for business growth. Unless you’re lucky enough to own space and your own equipment outright, you’ll need to pay for your infrastructure. Utilities, cooking and cooling equipment, insurance and signage are common expenses, but you’ll also need to consider maintenance costs. Remember, servicing your commercial ovens and refrigerators will probably cost more than what you pay for your Frigidaire at home.
Next, set up a chart of accounts, which is a system that organizes your restaurant’s accounts into categories, such as assets, liabilities, income, and expenses. This method is usually best for restaurant accounting because you have to regularly track your inventory, and it gives you a more accurate view of your financial situation. The next restaurant accounting area you’ll need to pay attention to is the expenses. Tracking expenses monthly and even weekly helps you understand how you can improve and cut down spending. Prime cost is a summation of all your labor costs and your cost of goods sold.
Restaurant accounting vs. restaurant bookkeeping
You and your accountant can use your P&L to review the total revenue and expenses of your business over a period of time. Doing restaurant accounting can be as rewarding as creating your favorite recipes when you do it the right way. Keeping track of your financial restaurant bookkeeping situation helps you make better financial decisions and future-proof your business. The cash accounting method is a simpler way to do accounting for your restaurant. With this method, you record income when you receive it and expenses when you pay them.
