Bar & Hotel Accounting: How to Keep Accounting Records for your Hotel or Bar
By: Sky Accountants
As a restaurateur, you need to decide how involved you want to be. As a start-up, you might need to keep the books yourself but over time you should also consider the advantages and disadvantages of using a restaurant and bar accountant or bookkeeper. It may be a cost that you are reluctant to have but it can free up your time so you can focus on running and growing your restaurant.
Depending on your personal preferences and budget, you can keep your books in several different and proven bar accounting ways – manually or electronically.
If the volume of your business is modest and you're still uncomfortable with technology, you can use a basic paper ledger book or a one-write system that uses carbon paper to post each entry to multiple accounts. While this is simple and straightforward, it will take your accountant longer to create your reports. It may be more expensive and prone to errors.
You can also use simple spreadsheets if you are a small operator. Just like a paper ledger, it is easy to use and your bar accountant or bookkeeper can easily export the data to more powerful accounting software.
Nowadays, most businesses use small-business bar accounting systems such as Xero or QuickBooks, which work well for restaurants with the right set of accounts. Your accountant or bookkeeper will use a specific program and set your restaurant up on it.
There are restaurant-specific programs with different features and levels of sophistication but the basic key features you should be looking for are POS, inventory management and ordering, and accounting. Your restaurant will benefit from these programs.
It may be hard to set up your books and learn which entries go in which accounts (double-entry accounting has always been complicated)
Need a bit of assistance with your hospitality business? Contact a Sky Accountants representative (https://www.skyaccountants.com.au/