Questions
Straightforward answers to questions small business owners ask about bookkeeping, taxes, payroll, and making sense of their numbers.
How do I track food cost percentage at the end of each week using QuickBooks?
Use the formula Beginning Inventory + Purchases - Ending Inventory = COGS, then divide by food revenue. Set up QuickBooks with the right accounts and record a weekly inventory count so you can run this calculation consistently.
Read answerShould I use a daily sales journal or just record bank deposits for my restaurant?
Use a daily sales journal with a sales clearing account. Recording bank deposits as revenue understates your actual sales and hides where money goes between the POS and your bank account.
Read answerHow do I account for tips as a liability until they're paid out to employees?
Create a Tips Payable liability account and credit it every time tips are collected. When tips are disbursed through payroll, debit Tips Payable to clear the balance. Florida allows passing credit card processing fees on tips to employees, but this requires careful tracking.
Read answerHow do I calculate the true cost of a menu item including ingredients, labor, and overhead?
Start with the plate cost by totaling ingredient costs per portion. Then layer in labor allocation and overhead. Most restaurants aim for 28-35% food cost on the plate, but when you add labor and overhead the total should stay under 65%.
Read answerWhat is prime cost in a restaurant and why is it the most important number to track?
Prime cost is your total cost of goods sold (food and beverage) plus your total labor costs (wages, benefits, and payroll taxes). It should fall between 55% and 65% of total revenue, and it matters more than any other number because it covers the two largest controllable expenses in your restaurant.
Read answerHow do I reconcile my POS system sales report with what actually hits my bank account?
Your POS total and bank deposit will almost never match. The difference comes from credit card processing fees, timing delays, tips held for payroll, comps and voids, and cash variances. A sales clearing account is the cleanest way to track and reconcile these gaps.
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