Bookkeeping, payroll tax and sales tax for restaurants, cafes & bakeries
A restaurant has the highest card volume, the largest payroll and the most sales tax of almost any small business. RazaPro reconciles POS and delivery-app deposits to the bank each month, calculates payroll and payroll tax including tips, and prepares the sales tax return, so the owner works from numbers that match the bank.
What restaurants, cafes & bakeries have to get right
The deposit never equals the sales report
Card processors take fees, delivery apps take commissions and pay weekly, and tips are paid out to staff. The POS report, the processor statement and the bank deposit all show different numbers, and the difference has to be explained every month.
Sales tax is collected on most sales
In most states prepared food is taxable, and the rate can differ by city. Because tax is collected on most of the sales, the quarterly return is the filing where an error costs the most.
Payroll is large and changes weekly
Restaurants have more employees than most small businesses, with tipped staff, part-timers and frequent turnover. Tipped wages are reported and taxed under their own rules, and minimum wage rules for tipped staff differ by state.
Food cost hides in vendor invoices
Dozens of small vendor bills a month make it easy to miscode food, drinks and supplies. A correct split is what lets an owner see food cost against sales.
What RazaPro does for restaurants, cafes & bakeries
- POS sales summaries, processor payouts and delivery-app payouts matched to bank deposits
- Bank and credit card transactions reconciled to the statements every month
- Vendor bills coded to food, beverage, supplies and rent so food cost can be read from the reports
- Payroll and payroll tax calculated monthly or quarterly, including tipped employees
- Sales tax calculated every quarter and handed over ready to file
- Monthly profit and loss and balance sheet with questions listed for the owner
What it costs
The complete plan: bookkeeping, sales tax and payroll tax ($150–$170 a month).
Bookkeeping is priced by transactions: $75 a month up to 150 transactions, $100 up to 300 and $120 up to 500. Catch-up work, extra states and larger payrolls are quoted before any work starts.See all plans and the estimator.
Software: QuickBooks Desktop, including a shared file on a virtual machine, and QuickBooks Online.
Sales tax
Sales tax on restaurant meals is the biggest recurring filing. RazaPro calculates the tax collected from the POS data, checks it against the deposits, and prepares the quarterly return for the state and local rate the client uses. Multi-location or multi-state restaurants need their jurisdictions confirmed first.
Payroll and payroll tax
Payroll for tipped and hourly staff is calculated each pay period or month, with payroll tax deposits and quarterly returns prepared. Larger establishments where tipping is customary have to report tip information to the IRS on Form 8027; the rules are on the IRS page below.
Not included in the standard scope
- Month-end food and beverage inventory counts and costing (quoted separately)
- Multi-location consolidation (each location is its own client)
- Menu pricing, budgeting and forecasting
- Liquor licence filings and health permits
RazaPro does not prepare or file income tax returns or give tax advice. Tax decisions and signatures stay with the business and its CPA.
Work our team has done in this industry
Our team has handled this monthly routine for a US accounting firm’s clients, including a gym, a restaurant and a construction company.Client names are not published, and results vary by client.Read the anonymous case studies.
Frequently asked questions
How much does accounting cost for a restaurant?
A small restaurant on the complete plan (bookkeeping, sales tax and payroll tax) is $150 to $170 a month. Bookkeeping alone is $75 to $120 depending on transactions. Inventory counts and multi-location consolidation are quoted separately.
Can you reconcile delivery-app and POS deposits?
Yes. Processor and delivery-app payouts are matched to the bank deposits each month, with fees and commissions coded as expenses so the books agree with the bank.
Do you handle tips and tipped payroll?
Payroll and payroll tax are calculated including tips. Whether a restaurant has to file Form 8027 depends on its size; the IRS page explains the test and the owner’s CPA confirms it.
Who files the restaurant’s sales tax return?
RazaPro calculates the tax and prepares the return, handed over ready to file. The restaurant or its accounting firm submits it, because tax decisions and signatures stay with them.
Do you work in QuickBooks Desktop?
Yes, in QuickBooks Desktop (including a shared file on a virtual machine) and QuickBooks Online.
Accounting firm with restaurants, cafes & bakeries as clients?
RazaPro does this work under your firm’s name at wholesale prices from $40 to $70 per client a month, with a free 30-day pilot on up to 3 clients.See the firm program.
Serving businesses across the US
RazaPro supports businesses in every state. State guides with local tax detail:Texas, Georgia, Colorado, New York, New Jersey, Florida, California, Illinois. Other industries:Grocery & Convenience, Salons & Barbershops, Retail Stores.All industries.
Talk through your restaurants, cafes & bakeries books
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