Skip to content

Industry

Hospitality

Better Financial Visibility in a High-Volume Industry

Wine glasses and a set table in a restaurant at dusk

Restaurants and hospitality businesses operate in an environment of daily transactions, changing food costs, payroll, tips, inventory, merchant fees, sales taxes, and narrow margins.

Accurate accounting is critical because small percentage changes in food or labor costs can significantly affect profitability.

A restaurant manager checking a tablet at the point-of-sale counter

Sales & POS Reconciliation

Sales reported by your point-of-sale system should ultimately reconcile with:

  • Cash
  • Credit card deposits
  • Gift cards
  • Delivery platforms
  • Discounts
  • Refunds
  • Sales taxes
  • Merchant processing fees

We help establish processes that connect POS activity with accounting records and actual bank deposits.

A chef checking stock with a tablet in a restaurant kitchen

Food, Beverage & Inventory Costs

Monitoring inventory and cost of goods sold helps owners understand gross margins.

We can help track:

  • Food purchases
  • Beverage purchases
  • Inventory
  • Waste
  • Vendor expenses
  • Cost percentages
  • Gross margins
An adviser meeting two restaurant staff at a laptop in the dining room

Payroll & Tip Reporting

Hospitality businesses frequently employ tipped workers, hourly staff, and management employees.

Accounting and payroll procedures should properly address wages, reported tips, payroll taxes, and employer obligations.

Eligible businesses may also benefit from the FICA tip credit.

A man and a woman reviewing charts and papers across a desk

Tax Planning

Tax considerations may include:

  • Income taxes
  • Sales and meals taxes
  • Payroll taxes
  • Tip reporting
  • FICA tip credit
  • Equipment depreciation
  • Section 179
  • Bonus depreciation
  • Qualified improvement property
  • Entity structure
  • Estimated taxes
An adviser and a business owner in discussion at a desk covered with charts

Business Advisory

We help owners monitor financial indicators such as:

Food Cost % | Labor Cost % | Gross Margin | Average Revenue | Occupancy Costs | Break-Even Sales | Cash Flow

For businesses with multiple locations, location-level reporting can help identify differences in profitability and operating performance.

What We Help You Manage

  • POS Reconciliation
  • Inventory
  • Food Costs
  • Payroll
  • Tips
  • Sales Taxes
  • Margins
  • Cash Flow

Frequently Asked Questions

How should POS sales be reconciled?
POS reports should be compared with cash receipts, merchant processor deposits, delivery platforms, refunds, discounts, gift cards, and sales tax activity.
Are employee tips taxable?
Generally, yes. Tips are taxable compensation and can create employee and employer reporting requirements.
What is the FICA tip credit?
Eligible food and beverage employers may qualify for a federal income tax credit for certain employer Social Security and Medicare taxes paid on employee tips.
Why should I track food and labor percentages?
They are two of the largest variable costs in many hospitality businesses and can materially affect profitability.
Can restaurant renovations qualify for depreciation deductions?
Certain improvements and equipment may qualify for Section 179, bonus depreciation, or other depreciation treatment depending on the property and applicable law.
Should each restaurant location have separate financial reporting?
Location-level reporting can be extremely useful for comparing sales, labor, food costs, margins, and overall profitability.

Services

How we work with hospitality clients

The service lines our clients in this sector call on most.

Get started

Experience Matters in Your Industry.

Work with a CPA firm that understands the accounting, tax, and business considerations unique to your industry.

Schedule a Consultation