Setting up an accurate bookkeeping system is one of the most important tasks when opening and running a new restaurant. Restaurant bookkeeping is different than most other businesses due to the fact that your inventory changes daily and your inventory items may change from week to week. Your bookkeeping system must be able to track all aspects of your operation and be able to change and update as needed.
You should purchase accounting software to make bookkeeping easier to manage, update and use. Good software does not take the place of a qualified bookkeeper or bookkeeping service. It just helps you manage and organize the information so you can get financial reports whenever you need them. Organizing your office and books is just as important as organizing your kitchen.
When setting up your bookkeeping system for the first time you will need to take a complete and accurate inventory. You will want to record the date, cost and pack size for each item. This way you will be able to maintain an accurate food cost even if costs and pack sizes change. If you do bar business you will also create separate inventory items for each beverage and bar item. Your inventory is the single biggest expense when you open so it is crucial to track it right from the start.
Next you will develop a worksheet to record all of your food sales. You should have a list for the number and type of meal served for each meal period, where it was served (dining room, patio, bar, etc.) and the amount of sales for each meal period. You should also break down your sales for each location to see if you need to make improvements anywhere. This worksheet should be filled out daily and is why POS (Point of Sale) systems are so valuable as this information can be gathered automatically for each sale entered. This same worksheet and information should be gathered for any bar business that you do.
The next part of your bookkeeping system is to set up a cashier’s summary worksheet. This summary will include the exact amount of currency, coins, checks, gift certificates and credit card transactions (broken down by each card company). This summary will be used to check against the opening balance of your register.
A cash receipt and sales work sheet should be filled out daily to include total food and beverage sales, tax collected tips and any other relevant receipts.
Your operating expenses will need to be recorded to generate the income statement. Your expenses include rent, utilities, payroll, insurance, depreciation, etc. The income statement shows you the difference between the total sales and the total operating costs.
Lastly you will want to create a break-even analysis worksheet to let you know what it will take to break even on a weekly or daily basis.
Your bookkeeper or accountant is essential in helping you set up a restaurant bookkeeping system and should be done well before you open the doors.
