Restaurant accounting: the essentials you need to watch

Restaurant accounting is not only “for the accountant”

The accountant is essential, but the owner needs a simple dashboard: how much did I sell?, how much did it cost to produce that?, what fixed expenses do I have?, what is left at the end? Without those weekly answers, you make decisions blindly: you over-buy, you cut prices badly or you hire staff without margin.

What you should separate from day one

• Revenue: sales by channel (dining room, delivery, events).
• Cost of sales: ingredients, packaging, drinks.
• Operating expenses: rent, utilities, maintenance, marketing.
• Staff: wages, overtime, benefits and contributions.
• Taxes and obligations: according to your regime and invoicing.

In a restaurant, mixing the “day’s cash” with personal money is one of the fastest ways to lose control. A bank account and clear records are not a luxury: they are survival.

Purchases and suppliers: the heart of spending

Every purchase invoice should be tied to a supplier and, ideally, hit inventory. If you buy without a record, later you cannot explain waste or food cost. Get this in order:

1. Active suppliers and payment terms.
2. Purchase invoices with date, amount and items.
3. Periodic reconciliation: what was purchased vs. what entered the warehouse.

What to look at every week and every month

Every week: sales, approximate ingredient cost, extraordinary expenses, inventory differences on expensive products.

Every month: gross and net profit, staff cost over sales, receivables/payables, taxes and electronic invoicing compliance if it applies to you.

The role of a hospitality ERP

An ERP for restaurants does not replace your accountant, but it gives them (and you) clean information: sales by dish, purchases, inventory and cash movements. At LMC Code we connect operations and financial control so you stop rebuilding the month in Excel on Sunday night.