Resturant Accounting Tips

If you are a restaurant owner and would like to do all of your restaurant accounting work yourself, it is possible if you get your system setup properly and you bring in a professional account or CPA for a little bit of training. Below you will find a few small business accounting tips that you defiantly will find useful if you intend on going down this path.

Restaurant Accounting Tip # 1- Accrual verse Cash Accounting – There are two basic types of accounting systems, which are accrual and cash. Please take a little bit of time and read a couple of articles that you can find online about them so you understand how they differ.

Restaurant Accounting Tip # 2 – Accounting Information System – There are quite a few excellent and very inexpensive accounting information systems available today. The two popular packages are QuickBooks and Peachtree. You need to purchase one of them and get it setup on a computer in your office.

Restaurant Accounting Tip # 3 – Hire a CPA for Training – Each business needs to have a chart of accounts setup specifically for that company. Next, each transaction that is entered into the system is recorded by placing an amount in a debit and credit account.

 While this might sound a little bit confusing if you have never done anything like this before, a knowledgeable CPA can setup your chart of accounts and teach you how to enter the transactions into the system in no time at all. That is, if you have a little bit of computer experience and business know how.

Restaurant Accounting Tip # 4 – Adjusting Entries – If you use an accrual based accounting system, which we strongly recommended, at the end of each period you will need to make a few adjusting entries. Some of these entries will be for payroll, depreciation, insurance, and cost of goods sold.

 If the professional you hire really knows what they are doing, they can setup a couple of spreadsheets for you in Excel that will automatically calculate the correct amounts for you if enter the date properly. The first couple of times you do this, it would probably be a good idea to have the CPA there to watch over your shoulder and make sure that you are doing everything correctly.

Restaurant Accounting Tip # 5 – Keep Your Business and Personal Accountants Separate – If you plan on maintaining accurate accounting records that you can depend on, you cannot intermingle your personal and business checking accounts

Restaurant Accounting Tip # 6 – Do Not Fall Behind – Each day you need to set aside a little bit of time so that you can record the previous days transactions. When it comes to accounting, the last thing that you want to do is fall behind and try to catch up quickly.

 Hopefully, you have found the  restaurant accounting accounting tips that were discussed above helpful and you will put them to good use. Without question, recording this date is something that most small business owners can do and it will save them some money if they get everything setup properly before they start entering the transactions into the system.

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