Accounting Tips for Restaurant Owners

• 1. Separate Business and Personal Finances

  Open a dedicated business bank account and credit card for your restaurant. This makes it easier to track transactions and avoid mixing personal and business expenses.

• 2. Track All Income and Expenses

  Record every transaction, including:

  • Sales revenue
  • Food and beverage costs
  • Labor and payroll expenses
  • Utilities and rent
  • Marketing and advertising costs
  • Equipment maintenance and repairs

• 3. Monitor Food Costs

  Food costs are one of the biggest expenses for restaurants. Track your food costs regularly to:

  • Identify waste or theft
  • Adjust menu pricing
  • Negotiate better deals with suppliers

• 4. Manage Inventory Effectively

  Use inventory management software to track stock levels, reduce waste, and avoid overstocking or stockouts. Conduct regular inventory audits to ensure accuracy.

• 5. Streamline Payroll

  Restaurant payroll can be complex due to hourly wages, tips, and overtime. Use payroll software to automate calculations and ensure compliance with labor laws.

• 6. Track Prime Costs

  Prime costs (food costs + labor costs) are a key indicator of your restaurant’s financial health. Aim to keep prime costs below 60% of total revenue.

• 7. Stay on Top of Sales Tax

  Restaurants must collect and remit sales tax in most states. Use sales tax automation tools to simplify the process and avoid penalties.

• 8. Prepare for Tax Season

  Keep your financial records organized for tax filing. Work with a professional to identify deductions and ensure compliance with IRS regulations.

• 9. Use Accounting Software

  Invest in restaurant-specific accounting software to streamline bookkeeping, track expenses, and generate financial reports.

• 10. Work with a Professional

  Hiring a professional accountant or bookkeeping service can save you time, reduce errors, and provide valuable financial insights.

At wrkhorse.com, we specialize in accounting for restaurants. Here’s how we can help you manage your finances with ease:

• 1. Accurate Transaction Tracking

  We track all your income and expenses, including food costs, labor, and utilities, to provide a clear picture of your profitability.

• 2. Inventory Management

  We help you monitor inventory levels, reduce waste, and optimize food costs.

• 3. Payroll Management

  We streamline payroll processing, ensuring accurate calculations and compliance with labor laws.

• 4. Sales Tax Compliance

  We ensure you collect and remit sales tax correctly, minimizing the risk of penalties or audits.

• 5. Tax Preparation Support

  We prepare your financial records for tax filing, helping you identify deductions and stay compliant with IRS regulations.

• 6. Advanced Tools and Software

  We use industry-leading accounting software to streamline your bookkeeping and provide real-time financial insights.

• 7. Affordable and Transparent Pricing

  Our accounting services are designed to fit your budget, with no hidden fees or long-term contracts.