Restaurant Bookkeeping

Bookkeeping is defined as the part of accountancy which is concerned with the daily documentation and maintenance of financial records in an establishment. A restaurant, for instance, uses the method of bookkeeping to list down every transaction it undertakes such as an order made by a customer or the purchase of food-related supplies and ingredients. In addition, bookkeeping serves as the foundation of all accounting information. This is why restaurant owners should be aware of the roles of the person in-charge of bookkeeping and the methods involved in it.

First of all, the person in charge of bookkeeping is called a bookkeeper or an accounting clerk. A bookkeeper uses a daybook in listing the sales, purchase, payments, and receipts created by the restaurant. Moreover, this person is responsible in ensuring that each information listed is properly organized in the daybook. After a bookkeeper has finished documenting the transactions, he will bring the daybook to an accountant. Through the information given by the bookkeeper, the accountant will create the necessary documents used in accountancy. Such documents include a statement containing the profits and losses of the restaurant and its balance sheet.

Moving on, there are two widely used methods in restaurant bookkeeping: the single-entry accounting system and the double-entry bookkeeping system. The latter method is more commonly used by most establishments. A single-entry accounting system is normally used by smaller restaurants. In this method, a simple listing of payments on a record book is involved, and only the basics such as the accounts payable and accounts receivable are considered. Conversely, a double-entry bookkeeping system entails a more complex process. In this method, each transaction is recorded at least twice, on the debit side and on the credit side. In addition, the system for double-entry bookkeeping requires that the sum of both sides must be equal at all times.

As a final note, restaurant bookkeeping is the initial stage of data gathering, therefore, it plays a vital role in the management of such establishments. Without this process, no financial report can be made. Furthermore, the accuracy of a restaurant's accounting information relies mainly on bookkeeping.