Bookkeeping for Restaurants in Tulsa

When it comes to Restaurant Accounting in Tulsa, Shockley Bookkeeping & Tax understands the fundamental principles and practices for a successful restaurant business in Tulsa. Here are some key aspects Shockley Bookkeeping & Tax Services Inc. recommends while managing restaurant accounting in Tulsa:

1. Bookkeeping: Maintain accurate financial records by recording all transactions, including sales, expenses, and inventory. This involves tracking cash inflows and outflows, reconciling bank statements, and categorizing expenses. Please note that all restaurants are set up on a “Cash Basis” Accounting System.
2. Petty Cash: Petty Cash is a huge part of the restaurant business.  Since the majority of your employees will be your Wait Staff, they will need to be paid out in cash each night with their total tips in hand.  They will need to be reported each evening they complete their shift as wage income.  The majority of transactions today in a restaurant are paid via credit card, not cash.  Making sure only management, and those in authority that you trust have access to the Petty Cash till on site, is very important.  This is where most mistakes happen and can cause a lot of frustration for a hard-working restaurant business owner to lose money.  This is the area where it could be easy to steal money because there may not be a solid tracking system set up to monitor all the cash coming in and going out.
3. Point of Sale (POS) System: Utilize a robust POS system to track sales, manage inventory, and generate reports. It can streamline the process by automatically recording sales, calculating taxes, and providing insights into revenue and profitability. The POS may seem like a huge up-front expense to begin your restaurant business, but it will save you so much time and money in the long run.  You will need to make sure that your POS System is set up correct from the beginning, as making adjustments later can cause a headache to change it when it comes to inventory, sales tax and or liquor tax processing.
4. Sales Tax: Familiarize yourself with the specific sales tax regulations and rates for restaurants in Tulsa. Ensure that you collect and remit sales tax appropriately, keeping track of sales tax liabilities and filing tax returns accordingly. Some require one monthly payment; others require two monthly payments.
5. Liquor Tax: Familiarize yourself with the specific state liquor tax registrations, regulations, and rates in the Tulsa area.  Ensure that you collect and remit liquor taxes appropriately.  Keeping track of liquor tax liabilities and filing the tax returns accordingly.  Some require one monthly payment; others require two monthly payments.
6. Payroll: Properly manage employee payroll, including wages, tips, taxes, and benefits. Ensure compliance with labor laws, including minimum wage requirements and overtime rules. Consider outsourcing payroll to a third-party provider to simplify the process. Payroll is its own accounting beast and should be considered a completely separate service from bookkeeping.  Even though the payroll paychecks do clear the business checking accounts and the tax payments are processed from the business checking, they are a completely separate service.  To keep your head above water as you are having to deal with the day to day processes of running a restaurant business in Tulsa, we recommend hiring payroll professional for this service.
7. Inventory Management: Track inventory levels accurately to prevent wastage, spoilage, or theft. Implement inventory management systems to monitor stock levels, order supplies efficiently, and control food costs. Determining if you will keep track of your inventory on a monthly, quarterly, or annual basis is key.  Make sure you have a process in place so you can set it and forget it.  Inventory can be overwhelming at times, but just take it one product at a time.
8. Cost of Goods Sold (COGS): Calculate COGS by considering the cost of ingredients and materials used in food and beverage preparation. Regularly analyze COGS to identify any fluctuations and take corrective measures to control costs.
9. Financial Statements: Prepare regular financial statements, such as profit and loss statements, balance sheets, and cash flow statements. These statements provide a snapshot of your restaurant’s financial health and help with making informed business decisions.
10. Budgeting and Forecasting: Develop a budget and forecast for your restaurant’s expenses and revenues. Regularly review actual performance against the budget to identify areas of improvement or potential cost savings.
11. Tax Compliance: Understand federal, state, and local tax obligations for your restaurant business, including income tax, payroll tax, sales tax, and liquor tax. We recommend hiring or consulting with a professional for these services.
12. Professional Help: Consider working with an accountant or bookkeeper experienced in restaurant accounting. They can provide valuable insights, assist with financial analysis, and help you navigate the complexities of tax regulations.

Remember, while these principles are generally applicable, it’s always advisable to consult with a professional accountant or tax advisor who is familiar with Broken Arrow’s specific regulations and requirements.