How to Keep Accounting Records for a Restaurant

How to Keep Accounting Records for a Restaurant

No matter you run a small café or a big restaurant, it essential that you keep accounting records so that at the end of the financial year you can easily pay your taxes and calculate the amount of profit or loss incurred. Most of the restaurants maintain a daily ledger of register totals, while closing out their restaurants, while other opt for weekly calculations.

Bookkeeping is an easiest way of maintaining financial records in a formal manner. Given below are few benefits of maintaining books:

Helps in Sales Totals: bookkeeping helps in maintaining records of totals sales occurred during financial year. Moreover it also helps in categorizing sale payments received via cash, credit or debit card. All these things help in calculating the total amount of sales tax which will be given to the government.

Salary records: all the cooks, serving staff and managers are hired on the salary basis, which means that you have to right monthly cheques to all of them. Salary is considered as a huge expense for companies so it becomes essential to keep a record of all the salaries paid.

Managing Expenses: restaurants requires good amount money to carry out their day to day operations like purchasing raw materials, utilities, repairs, maintenance etc. moreover they also have to shell out good amount on promotions too. Bookkeeping helps in keeping tab on expenses so that you can spend carefully next time.

Taxes Calculations: Every restaurant are liable to provide their sales & payroll details to the tax collection authorities of the state. Based on their incomes they have to pay out taxes. Moreover they also have to pay for employee’s social security and Medicare taxes.

Well maintaining restaurant bookkeeping is not an easy tasks as it requires good amount of experience and patience to calculate everything, and then finalize the book at the end of the financial year. It will be good that you hire some experts who have good experience and knowledge of maintaining restaurant records. Moreover you can also get in touch with bookkeeping firms.

Categories: Business

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