One thing you don’t want to do is to run out of ingredients for an item that is listed on your menu. So, it’s extremely important that you keep track of your inventory at all times and to place the order in a timely manner so that you don’t run out while waiting to receive the restocking order. How you set up your books for a restaurant lays the foundation for how smoothly the rest of the bookkeeping process will go.
MarketMan can level up your operational workflow by seamlessly integrating your bookkeeping, POS and inventory management solutions. Cost of Good Sold (COGS) is a KPI that shows how accurately you’re pricing your food items and controlling your inventory. Keeping track of your COGS ration will help you reduce and maintain your inventory costs. Prime cost accounts for all your labor costs and your cost of goods sold. For every dollar you earn, the prime cost is the amount of that dollar that goes to labor (your staff) and product (food items). Rather than trying to handle the books yourself or hiring someone to work internally, we recommend getting an outside bookkeeper.
How to Reconcile Your Accounts
Depending on the type of restaurant you run, though, costs may be higher or lower. To evaluate the costs, divide the staff into groups of kitchen staff or managers to see which group is costing you more. The cost of preparing the item on the menu is divided by the total revenue from the item. This ratio ensures that you’re making a profit from each menu item.
With Shogo, if there are any errors it will hold back the journal entry until you update the accounting mapping. An example of this would be if you started selling a new item like retail, for example. If you create new items in your POS then Shogo will automatically detect this and email you to update your accounting mapping how to do bookkeeping for a restaurant with the proper QBO category. Once you do this it will then send the journal entry to QBO automatically. Once you have a sales summary you should set up a daily sales journal entry and create a memorized transaction in QuickBooks. One of the first items you will have to figure out is how to properly record your sales.
Use Restaurant Bookkeeping Software:
Determine your daily inventory costs and calculate the value of the food items you have in stock by tracking your consumables and supplies. It’s a good idea to set up an inventory management system that reduces waste and optimizes food cost. This will also help you avoid food surpluses and shortages, and instead strike a more accurate balance. Automating your restaurant’s bills allows you to monitor exactly when the next bill is due.
