Accounting Software for Restaurants

Easily run reports to see trends—like weekly and monthly pay differences, or payroll costs by kitchen, front of the house, and management—so you can make any necessary adjustments quickly. Restaurant accounting is unique because of the language of hospitality finance. It’s crucial to have an effective accounting system in place for your restaurant to see the success you’re after.

Business stage

If you want to future-proof your restaurant, you have to understand how accounting for restaurants works. In this guide, we’ll break down everything you need to know to start restaurant accounting today. The cost of goods sold represents the costs of making and selling your products at any given time, including inventory costs. 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. Depending on the type of restaurant you run, though, costs may be higher or lower.

Choosing Accounting Software for Restaurants

This feature allows you to identify trends, optimize pricing, control costs, and make informed decisions to improve profitability. While general accounting software can handle basic finances, restaurants benefit from specialized software. Restaurant-specific solutions offer features like menu costing, perishable inventory management, POS integration, and industry reports. We recommend Melio as the perfect accounting solution for new restaurants because it focuses on cash flow management. The best restaurant accounting software offers features like inventory tracking, invoicing, and integration with POS systems tailored to the restaurant industry.

Setting Up Your Books

So here are the essentials of restaurant accounting and bookkeeping when it comes to reports, processes, and KPIs. Because of this, they require specific accounting methods and benchmarks that wouldn’t apply to, say, a retail store. They can help you understand your restaurant’s revenue, manage cash flows, and optimize your financial health. bookkeeping for restaurants Their role transcends mere bookkeeping; they interpret financial data to provide you with actionable insights. Gain even more insight by viewing built-in bookkeeping reports that compare performance between periods. Quickly access a profit and loss report that shows how much of each sales dollar you spend on each expense category.

Inventory reports should also be generated regularly — at least monthly — depending on the turnover rate. Yearly reports are essential for overall financial analysis, tax preparation, and strategic planning. The key is to align your accounting methods with your business’s scale, complexity, and long-term financial goals.

Profitability

• Every employee has a record of their pay, which is included in year-end reports and other financial statements.
• 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.
• Many restaurants rely on part-time or seasonal employees to avoid this expense.
• The best choice depends on the size of your restaurant, as well as your financial needs and goals.
• Ensure that your chosen program and plan offer the specific financial reports required for informed decision-making.