According to Warren Buffet, “Accounting is the language of business.” Thus, every business owner must understand accounting. Restaurant accounting has many commonalities with accounting practices used in other industries, but it also has some important nuances. 

What Are the Responsibilities of a Restaurant Accountant 

Restaurant accounting duties include the following: 

• Recording all transactions in the general ledger and accurately categorizing them. 
• Performing analysis of ledger and journal entries. 
• Processing all invoices/bills and paying them. 
• Performing regular bank statement reconciliations. 
• Creating financial statements that help determine the financial health of the enterprise including the balance sheet, income statement, and cash flow statement. 
• Helping to develop budgets and benchmarks and then tracking the company’s progress toward its goals. 
• Completing tax returns and offering tax advice and assistance. 

Benefits of Restaurant Accounting 

Restaurant accounting helps to create better cash flow, improves financial management, enhances forecasting and planning, improves inventory management, helps the company set smart prices, improves budget management and budgeting outcomes, and helps the enterprise to be compliant. 

Critical Things to Know About Restaurant Accounting 

Here are some things that make restaurant accounting unique: 

• Tip handling. To properly keep track of payroll taxes and manage balance sheets, restaurant owners must track all tips. There is a major tax benefit called the FICA tip credit which can be claimed on the company’s tax return. 
• Inventory management. Restaurants have a substantial inventory of raw materials that must be managed to minimize the cost of goods sold. 
• Vendor credits. If a vendor doesn’t deliver a complete order or if food is spoiled, it is critical to get a credit to avoid an unnecessary expense. 
• Cash flow management. It is critical to managing the flow of cash for the business. 
• Cost management. It is likewise critical to managing all costs including labor, food, and overhead costs. 

Seek Expert Restaurant Financing Assistance 

To get the funding you need to finance your restaurant ownership goals, contact First Class Lending. We can provide customized financing solutions to meet your needs.