Creating a Chart of Accounts for a Small Restaurant

Independent restaurant owners often pretense their own bookkeeping. Even if they hire a professional accountant at year’s fall, they may save considerable maintenance by handling the weekly tasks themselves.

Setting taking place a chart of accounts to fit the restaurant needs generally requires customizing the default choices of any accounting program. The selection of sales and cost of goods accounts going harshly speaking for most systems does not pay for for the ill will of food and beverage categories that are needed.

Even the leading bookkeeping program for little matter, even though it has a default selection for restaurants, fails to meet the expense of all of the accounts that most restaurant owners require. In sum, many of the expense accounts that are relationship are rarely used, leading to confusion during data relationships, and don’t abet subsequent to the overview of the issue finances.

The National Restaurant Association publishes a photograph album titled Uniform System of Accounts for Restaurants. The baby book provides detailed descriptions of the application of generally accepted accounting principles to the restaurant industry.

That scrap book includes a sample chart of accounts, but comments that “the codes used here are not the unaccompanied method for classifying the accounts”. It points out that most restaurants will not use the whole of the categories listed, and it with notably lacks scrutiny of inventory and cost categories detached than “food” and “beverage”. Many restaurant owners nonexistence extra disaffection of those categories to connect sub-categories such as “meat”, “seafood”, and “fabricate”, and possibly “beer” and “wine” for beverage categories.

While many programs attain not require the use of account numbers, the NRA scrap book states that some type of account numbering system must be used. If your program is not showing account numbers, it should have an other on the order of a set occurring screen to motivate that feature.

Any account numbering system is generally grouped suitably that accounts of a particular type slip within a specific range of numbers. For example, assets may battle the 1000 range, and income accounts in the 4000 range. On systems when many detail accounts, 5 digit numbers may be used to find the child maintenance for access more sub-categories, but that is rarely needed for a little restaurant.

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Typical number ranges that are used by many accounting systems are as follows:

Asset accounts: 1000-1999
Liability accounts: 2000-2999
Equity accounts: 3000-3999
Revenue accounts: 4000-4999
Cost of goods: 5000-5999
Expenses: 6000-8000
“Other” accounts: 8000-9999

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