My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Thanks Tree2Thanks
Reply
 
LinkBack Thread Tools Display Modes
April 4th, 2019, 01:55 AM   #1
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

Anyone know about the types accounts in a restaurant?

I got a job in a restaurant , and they have a list of account related information in an excel sheet .

I have to start working on it from tomorrow .

Where can i get a bit more proper information about the types of accounts in a restaurant ?
indiandonkey is offline  
 
April 4th, 2019, 03:46 AM   #2
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

I don't know else would be in it other than these ?

indiandonkey is offline  
April 4th, 2019, 04:48 AM   #3
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 506
Thanks: 40

Restaurants have the same accounts as any other business: asset, liability, and equity accounts.

They generally just need one sales account and one cost of sales account. They have all the normal overhead accounts (advertising, office expenses, etc.).

If you’re an accountant then you likely care more about the balance sheet accounts. Tips and (depending on location and type of entity) payroll/sales/Vat/income/etc taxes payable accounts will be needed. Other than that, count the cash, record the fixed assets and long term debt as needed, and you’re probably good.

Overall, restaurants are pretty simple. I do the books for quite a few (all payroll and bookkeeping tasks except for entering employees’ hours, which I make my clients do) for $1,200 - $1,500 a year.
AplanisTophet is offline  
April 4th, 2019, 04:57 AM   #4
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

Thanks a lot for the reply ,

After preparing some notes from scratch , i ended up here .

A Restaurant Chart of Accounts: Food, Assets and Expenses

Article Table of Contents ,

How to List Food in Accounts
Compiling a Restaurant's Chart of Accounts
Revenues
Expenses
Occupancy Expenses
Labor Expenses - Management
Labor Expenses - General Employee
Operating Expenses

https://www.thebalancesmb.com/how-to...software-14137


Compiling a Restaurant's Chart of Accounts

While not every restaurant owner will need to customize this chart of accounts, the following lists give a solid base for what to include for a restaurant's income statement.
Revenues

Quote:

Beverage Sales
Food Sales
Other Sales, e.g., Offsite Catering, Speaking Engagements

Expenses

Cost of Beverage Sales
Cost of Food Sales
Any discounts given that even marginally affect bottom-line

Occupancy Expenses

Rent Expense
Insurance on Building
Security/Alarm Services
Janitorial
Building Repair and Maintenance (the costs of any routine repairs and maintenance are recorded in this account
Except repairs and maintenance expenses that can be capitalized to the fixed asset account because they extend the useful life of the asset
Property Taxes
Utilities
Disposal Services

Labor Expenses - Management

Officer Wages - Officer Salaries and Wages
Officer Benefits: Health Insurance
Officer Benefits: Meals and Discounts
Officer Benefits: Other
Management Wages - Management Salaries and Wages
Management Benefits: Health Insurance
Management Benefits: Meals and Discounts
Management Benefits: Other

Labor Expenses - General Employee

Employee Wages: Front of the House: Bartender
Employee Wages: Front of the House: Bussers
Employee Wages: Front of the House: Host/Hostess
Employee Wages: Front of the House: Servers
Employee Wages: Back of the House: Cooks
Employee Wages: Back of the House: Dishwashers
Employee Benefits: Health Insurance
Employee Benefits: Meals and Discounts
Employee Benefits: Other (employee benefits that do not fall into any other category are recorded in this account)

Operating Expenses

Bad Debt
Cash Over/Short
Credit Card Fees
Liability Insurance
Licenses and Permits
Corporate Taxes
Equipment Repairs and Maintenance
Equipment Lease
Glassware, Flatware, and Smallware
Marketing Expenses
Linens, Laundry, and Uniforms
Restaurant Décor
Menus and Drink Lists
Payroll Services Fees
Miscellaneous Expenses
Accounting Fees
Legal Fees
Tax Preparation Fees
Music and Entertainment
Telephone
Internet
Travel
Office Supplies
Bank Fees
Fines and Penalties
Postage and Mailing
Interest Expense
Depreciation Expense

This list for a restaurant highlights the most common income statement accounts that restaurants need to operate. The chart of accounts need to be customized to meet the unique needs of your organization but serves as a starting point.

Is that a good list of expenses and income ?

This is my first job involving lots of excel sheet entries

I am a bit nervous .

I am not sure what to expect .

They told me someone else would help me those entries for a few days .

I see this as a learning experience
indiandonkey is offline  
April 4th, 2019, 05:04 AM   #5
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

Maybe this involves everything listed in this website here



Restaurant Accounting 101: How to Manage Your Bookkeeping


Restaurant Accounting 101: How to Manage Your Bookkeeping
indiandonkey is offline  
April 4th, 2019, 06:14 AM   #6
Math Team
 
Joined: Oct 2011
From: Ottawa Ontario, Canada

Posts: 14,344
Thanks: 1024

Contact Ronald McDonald....
Denis is offline  
April 4th, 2019, 06:59 AM   #7
Newbie
 
Joined: Jan 2019
From: india

Posts: 10
Thanks: 0

Lol ,

OK there is so much accounting related things in my head right now which needs some organizing .

Let me try to write down some stuffs from the basics .

1, Double entry system of book keeping has two columns for entering transactions

2, There are 5 accounting elements

3, Financial transaction involves buying and selling of objects

A, Real Accounts

Credit what goes out
Debit what comes in

B,Personal accounts

Credit the giver
Debit the receiver

C,Nominal Accounts

Credit all incomes and gains
Debit all expenses and losses

4, Profit and Loss account ( Income Statement )


Quote:
Beverage Sales
Food Sales
Other Sales, e.g., Offsite Catering, Speaking Engagements

Expenses

Cost of Beverage Sales
Cost of Food Sales
Any discounts given that even marginally affect bottom-line

Occupancy Expenses

Rent Expense
Insurance on Building
Security/Alarm Services
Janitorial
Building Repair and Maintenance (the costs of any routine repairs and maintenance are recorded in this account
Except repairs and maintenance expenses that can be capitalized to the fixed asset account because they extend the useful life of the asset
Property Taxes
Utilities
Disposal Services

Labor Expenses - Management

Officer Wages - Officer Salaries and Wages
Officer Benefits: Health Insurance
Officer Benefits: Meals and Discounts
Officer Benefits: Other
Management Wages - Management Salaries and Wages
Management Benefits: Health Insurance
Management Benefits: Meals and Discounts
Management Benefits: Other

Labor Expenses - General Employee

Employee Wages: Front of the House: Bartender
Employee Wages: Front of the House: Bussers
Employee Wages: Front of the House: Host/Hostess
Employee Wages: Front of the House: Servers
Employee Wages: Back of the House: Cooks
Employee Wages: Back of the House: Dishwashers
Employee Benefits: Health Insurance
Employee Benefits: Meals and Discounts
Employee Benefits: Other (employee benefits that do not fall into any other category are recorded in this account)

Operating Expenses

Bad Debt
Cash Over/Short
Credit Card Fees
Liability Insurance
Licenses and Permits
Corporate Taxes
Equipment Repairs and Maintenance
Equipment Lease
Glassware, Flatware, and Smallware
Marketing Expenses
Linens, Laundry, and Uniforms
Restaurant Décor
Menus and Drink Lists
Payroll Services Fees
Miscellaneous Expenses
Accounting Fees
Legal Fees
Tax Preparation Fees
Music and Entertainment
Telephone
Internet
Travel
Office Supplies
Bank Fees
Fines and Penalties
Postage and Mailing
Interest Expense
Depreciation Expense

This list for a restaurant highlights the most common income statement accounts that restaurants need to operate. The chart of accounts need to be customized to meet the unique needs of your organization but serves as a starting point.
5, Balance Sheet

A balance sheet lists your assets, liabilities, and equity. Assets are things you own, like equipment, inventory, and straight cash. Liabilities are things like vendor bills and restaurant equipment loans.



Your balance sheet also shows your equity, so your net worth; it’s what’s left over at the end of the day when assets are subtracted from liabilities. A negative number means you owe more money than you actually have. Your goal? Make this number positive. This could mean reducing operating costs or finding ways to generate more income to cover debts.



What it shows you:

Your actual financial position

Your debt load



Why you should pay attention to a balance sheet:

A balance sheet helps you know if you owe more money than what you currently have, plus the current value of your assets and overall business.

This report is also where warning signs would show up when business is in trouble, so you can make changes to prevent closing your doors.


I am happy that i narrowed it this much
indiandonkey is offline  
April 4th, 2019, 09:42 AM   #8
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 506
Thanks: 40

If I charge $1,200 - $1,500 per year as I stated above, that means I’m spending about 15-20 hours per year to do all of the bookkeeping entries and payroll/sales tax filings. My typical restaurant client will gross between $500,000 and $1,000,000 per year. I hope that gives you some perspective. At this rate, you’re going to spend more time in MyMathforum learning some basics than I do for a whole year’s worth of books...
AplanisTophet is offline  
April 4th, 2019, 10:00 AM   #9
Math Team
 
Joined: Oct 2011
From: Ottawa Ontario, Canada

Posts: 14,344
Thanks: 1024

Quote:
Originally Posted by indiandonkey View Post
Operating Expenses

Bad Debt
Cash Over/Short
Credit Card Fees
Liability Insurance
Licenses and Permits
Corporate Taxes
Equipment Repairs and Maintenance
Equipment Lease
Glassware, Flatware, and Smallware
Marketing Expenses
Linens, Laundry, and Uniforms
Restaurant Décor
Menus and Drink Lists
Payroll Services Fees
Miscellaneous Expenses
Accounting Fees
Legal Fees
Tax Preparation Fees
Music and Entertainment
Telephone
Internet
Travel
Office Supplies
Bank Fees
Fines and Penalties
Postage and Mailing
Interest Expense
Depreciation Expense
Why is "Food purchases" not shown;
that would probably be highest expense...
Denis is offline  
April 4th, 2019, 02:01 PM   #10
Senior Member
 
Joined: Jun 2014
From: USA

Posts: 506
Thanks: 40

Quote:
Originally Posted by Denis View Post
Why is "Food purchases" not shown;
that would probably be highest expense...
It’s part of cost of goods sold whereas the list you quoted is for operating (aka, general and administrative) expenses. Regardless of what country you are in, basic accounting standards will generally state that cost of sales should be separated from operating expenses on an income statement.

Fun fact: U.S. tax law allows cost of sales to be deducted from gross sales when computing gross income while other deductions (operating expenses) are not taken into account for this purpose. This makes a difference to drug dealers, especially those State-approved pot growers. The federal tax law disallows any deductions stemming from illegal business activities, but because cost of sales is not considered a deduction but rather a factor in computing gross income, drug dealers may reduce their gross sales by the cost of their drugs when computing their taxable income. As a result, pot growers in particular may elect to include as much of their expenses in cost of sales as the tax law (generally, Regulations under Sec 471 of the Internal Revenue Code) allows for.
Thanks from Denis
AplanisTophet is offline  
Reply

  My Math Forum > Science Forums > Economics

Tags
accounts, restaurant, restuarant, types


« Macro-economics | - »

Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Probability in a Restaurant misosoup Advanced Statistics 4 May 29th, 2015 03:38 PM
types of radioactivity TwoTwo Physics 29 June 5th, 2014 02:19 AM
Restaurant Question Puzzled16 Geometry 1 April 9th, 2014 12:25 PM
Different types of nonlinearities mikkola Real Analysis 0 July 14th, 2008 01:36 PM
Types of numbers johnny Number Theory 2 November 3rd, 2007 02:32 PM





Copyright © 2019 My Math Forum. All rights reserved.