best bookkeeping software for restaurant

Tracking expenses monthly and even weekly helps you understand how you can improve and cut down spending.

The next restaurant accounting area you’ll need to pay attention to is the expenses. If you’re hiring an accountant for your restaurant, you might not need to know these in-depth, but it will help you understand what they're talking about and your overall financial situation. Balance sheet reconciliation: the process of ensuring your balance sheet is correct by cross-checking balances and entries.You calculate it by adding beginning inventory and inventory purchases, subtracting ending inventory, then dividing that by sales. Food cost percentage: the percentage of how much food costs at your restaurant.Cost-to-sales ratio: the percentage of how many sales you make compared to your costs, which derives from dividing food costs by food sales.For example, your staff’s salary, food ingredients, beverages, and taxes. Prime costs: the total direct costs to produce and serve your products, including labor costs and cost of goods sold.Direct labor: the total costs of employees directly involved in maintaining the restaurant, including salaries and wages.Cost of goods sold (COGS): the total cost of ingredients to prepare the food for your restaurant, not including labor costs.Here is some important restaurant accounting vocabulary you should know: Using words like al dente or flambé comes naturally to you, but accounting terms? Probably not so much. Learning about these will help you understand how restaurant accounting works and what you can expect. There are several factors to restaurant accounting, including important vocabulary, different types of expenses, accounting cycles, and items you have to track. A bookkeeper will deliver balance sheets, produce invoices, and reconcile bank accounts. Restaurant bookkeeping focuses on managing the financial books and documenting transactions. An accountant will create financial statements, build financial reports, and oversee the bookkeeper’s work. Restaurant accounting uses data to assess your restaurant’s financial situation and make business decisions.

Best bookkeeping software for restaurant