QuickBooks is an accounting software that manages financial data online. The QB features are used to manage business finances and accounting. This software helps enterprises in their restaurant by organizing their finances, managing invoices, and tracking expenses. Quickbooks help save time and minimize the risk of human-generating errors.
In this blog, we will share knowledge about using QuickBooks for restaurants and it will help you easily manage accurate financial data of restaurants.
How does Quickbooks help Restaurants at work?
You can alter the QB according to work by using Quickbooks for restaurants.
Here are some of the benefits:
- Invoicing: Using Quickbooks helps restaurants eliminate the traditional way of maintaining records and bills. Using the QB accounting tools generates invoices in a few clicks.
- Decision-making: Every decision that restaurants have taken is based on the budget which affects the whole process. You can easily run profit and loss reports by using Quickbooks for restaurants.
- Inventory Management: Quickbooks for restaurants provide transparency of your inventory and your remaining stocks. From the Quickbooks inventory management feature, you can analyze the remaining items.
- Reporting: Generated reports will help you review your sales and purchases, credit and debit transactions, and expenses. The feature of a balance sheet Quickbooks helps maintain cash flow reports as per date.
How to Use Quickbooks for Restaurants Business?
There are several steps to using QBs for restaurants. Follow all the steps that are mentioned below:
- Launch Quickbooks and Create a New Company File
Create Company files in Quickbooks for restaurant software.
- Open an Intuit Quickbooks account.
- A window will pop up with no company open window.
- Click on the Create new company and then Express start.
- For the experienced user, Open the file menu and tap New Company.
- An interface will be generated, enter all details in the given field, and press the Next button.
- Now select the industry type and click the Help Me button.
- Set the “type” (Restaurants, Bar as per your business).
- press on Next.
- Go to the Company type option and hit the next button.
- Set the starting date of your restaurant in the financial year.
- Click on Next, and move forward by tapping the option “Create Company file” and then “Start working”.
- Move toward the List menu and select the add multiple list entries option.
- No choose the Customer, item, or vendor from the list section.
- Repeat this process if you want to set up vendors, customers, or items.
- Click on the empty row and add details.
- Create a Quickbooks Chart of Accounts Restaurant
- After creating a new business profile. At the beginning of the process, you will be asked if you want to use QuickBooks Recommended Chart of Accounts for Restaurants.
- Decline this and opt to create your chart of accounts manually instead.
- Add a List of Food Items and Services that You Will Offer the Customer
- First, open the items list and then add a new item to this list.
- After this, mention details about your food item and click the save button.
- Adding New Vendors
- Open the vendor center and click on the add a new vendor.
- Now enter the vendor information in the given field and click on the save option for adding a vendor.
- Setting Up Class Tracking
- Open class tracking and now turn on this tracking.
- Add new classes and after this process, you can use class tracking in transactions.
- Create a Taxable Customer
To represent daily sales, create a taxable customer. Create individual items, you want to track and organize in groups. Classify the groups as payment and services that help you cover sales.
- Payroll Accounting System
Categorize the departments for each class like kitchen staff, admin staff, and servers by using the Quickbooks payroll support feature that helps in the accounting system.
Reports Generated by Restaurants
Here we mentioned reports that can be created in restaurants:
- Sales Reports: These reports help in cash collection and receivables daily, weekly, and monthly basis.
- Expense Report: This report records the credit and debit transactions to service providers and vendors.
- Balance sheet: For monitoring your assets and Liabilities you need to maintain a balance sheet.
Accounting KPIs of Restaurant for Quickbooks
To ensure the reliability of financial success of the restaurant calculate the KPIs through Quickbooks accounting features:
- Cost of Goods Sold(COGS): The cost of every ingredient added to every item is referred to as COGS. The Restaurants generated one-third of their revenue with the help of COGS.
- Prime Cost: To generate profit we use lower prime cost, hence to provide the full functionality the restaurant is trying to keep its prime cost below the range of 60%. We can calculate by the formula:
Total COGS+ Total Labor= Prime Cost
- Earning Before Interest, Tax, Debt and Appreciation(EBITDA):
You can improve the EBITDA by increasing the production of selling products through high-margin items. Formula to calculate EBITDA:
Net Income+ Taxes+Interest+Autoization+Depreciation=EBITDA
Conclusion
In this blog, we discuss QB for Restaurants which can help you understand the different ways of using QuickBooks for Restaurants. If you want to read this blog for knowledge purposes you will gain knowledge about QuickBooks features and how this software helps in the restaurant business.
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