Restaurant accounting is undoubtedly one of the most important administrative functions of a restaurant. It involves taking control of your accounts and making sense out of your business financial information. To ensure you get the best out of your financial information, you should work closely with your accountant to generate financial reports in a consistent and timely manner. Any delay in reporting can have dire consequences on your business operations and can be extremely costly in the long haul.
Although you may want to focus more on the restaurant operations side of things rather than understanding the complex nature of restaurant accounting, understanding this is equally important. You need to know what the numbers mean, what they reflect in your business, and how you can use them to improve your business. Using a tool like Sourcery, you can easily extract data from your accounting software and use it to generate most of these reports. In this article, you will learn about the various accounting reports that your restaurant should keep.
Daily Sales Report/Everyday Report
One of the most important accounting reports that you should keep is the daily sales report (DSR). Every restaurant owner and manager needs to review this report on a daily basis to get a picture of how the restaurant is performing. The report provides valuable information on the restaurant’s sales, taxes, tips, discounts, credit card fees, refunds, comps, cash short or over, and more. In other words, it provides a snapshot of day to day events and what they mean financially.
One way of generating more useful DSRs is simplifying your restaurant point of sale categories to ensure every aspect is accurately recorded. An effective daily sales report should provide the following information:
- Daily sales comparison: You should be able to compare your sales today with what you had yesterday or a day like today last week. When you factor in events like holidays or a change in weather, you can explain why your restaurant is performing in a certain way.
- Employee tip percentage: The tip percentage is important in showing how customers are satisfied with the services they receive in your restaurant. If you report a high tip percentage, it may indicate that your servers are giving away freebies. However, a low tip percentage shows that your restaurant is offering poor service.
- Cash short or over amount: Since cash is everything in the management of a business, any missing cash should be investigated and accounted for. If your business is missing $2 per day, it means you are losing more than $700 yearly. Daily sales reports show whether there is any cash missing so you can trace it back to the cause.
Chart of Accounts (Weekly, Monthly, Yearly)
The chart of accounts is an important record for any restaurant. It categorizes the money that the business spends and receives into specific accounts.
Chart of Accounts
|Income Statement Accounts||● Operating Expenses
● Operating Revenues
● Non-operating Expenses and