How to do Bookkeeping for a Restaurant?
Restaurant Bookkeeping is a complicated task. It becomes difficult for owners to focus on bookkeeping task while managing day to day task of running a restaurant. If you are left behind on the bookkeeping it becomes complicated to catch up everything.The profit margins are too tight, making it difficult to record everything in bookkeeping. If you aren’t focusing on your financials it becomes too late to rectify the problems by the time you catch them. Here are a simple guide on discovering the ways of doing bookkeeping for a restaurant:
In order to properly record your sales, it is necessary to figure out one of the first items. With restaurant sales it is essential to keep a record of a daily sales journal entry into QuickBooks. The restaurant accountant usually record an individual daily sales entry for each day (not weekly or monthly) because they try to imitate how the credit card and cash hit the bank of the restaurant.
Many restaurants accept credit cards and easily settle the batch accounting on a daily basis. This in turn result in deposits hitting your bank or credit card deposit separately for each batch. You need to examine how funds are coming constantly on your bank and you need to place bookkeeping system to mirror that activity.
For recording sales you will need to create some form of report that gives brief report on your sales. Many restaurant POS systems will have a daily sales summary engulfed into them. If you require customized report for getting detailed information you will require to work through the customization with your POS System. As soon as you have a summarized sales you should establish a daily sales journal entry and formulate a memorized transaction in QuickBooks.
Taking Care of Accounts Payable
The next step entails setting up of accounts payable. It is significant to make your vendors happy if you wish to continue doing business with them. You need to have familiarity about how to enter bills and pay bills in QuickBooks; both are simpler tasks to do. You can enter your bills 1-2 times per week and pay them once per week should be more appropriate.
You also need to know how to print checks from QuickBooks when you start cutting your checks for your bills. This will directly enter the payment information into your QuickBooks file, thus minimizing unnecessary data entry. Another alternative is to pay your bills with online bill payment by attaching your bank account to QuickBooks and signing up for online Bill pay.
Another form of accounts payable will be establishing a credit card in QuickBooks. There are many users who have set up credit cards inappropriately in QuickBooks. A credit card should not be established as an expense type account; it should be placed as a credit card type. Your expenses are identified as you feed credit card charges. Establishing credit card with the correct type will also permit you to reconcile the account, which is also necessary.
No matter what industry the clients are in, they should use an outsourced payroll service. The major reason is the liability that usually comes with operating your own payroll.
If you inappropriately file your payroll taxes or file them late, the interest and penalties you will be examined can be quite big. Secondly, your payroll outsourcing requirements is inexpensive. You should look for a payroll company that is well respectable. It is also necessary that payroll data have the potential to be imported into QuickBooks and all paychecks and reports to be sent digitally.
Reconciling QuickBooks accounts is the most independently significant piece of the whole bookkeeping process. Reconciling your accounts is the only procedure of ascertaining that you have done recording of all your financial transactions. You simply require reconciliation of your all accounts not only your bank accounts. In the same way, you can do reconciliation of credit cards, bank accounts, payroll liabilities and lines of credit. Any account that obtains a statement with starting and ending balance can also be reconciled. Account reconciliation ensures that you are focusing on having accurate financial reports.
Financial Reporting comes as the next thing of your bookkeeping process. If you are not using financial reporting it means you are running your business haphazardly. If you are having tight profit margins in your restaurant business it becomes important to examine your financial reports on a frequent basis.
Restaurants should be focusing on sales vs. cost of goods sold ratios and labour ratios. The next ratio most of the restaurants should consider is the prime costs which implies setting up cost of food, beverage and labour at 60% to 65% of your total sales. Searching at the comparison of profit and loss to previous periods and years will also offer you some insight as to how things are running financially. In short, the financial reporting of restaurant is the difference between success and failure.