By Restaurant Accounting Services (RAS)
Running a restaurant means juggling plates—literally and figuratively. Between staffing, ordering, scheduling, quality control, guest complaints, vendors, payroll questions, and your own sanity, it’s common for owners to wonder:
“Can I do my own restaurant bookkeeping?”
Short answer: Yes, you can… but you absolutely shouldn’t.
Just as you wouldn’t let a dishwasher run your kitchen line on a Saturday night, your financials, compliance, payroll, and tax reporting need more than “someone who’s good with numbers.” Bookkeeping in a restaurant is not generic bookkeeping—it is industry-specific, time-sensitive, compliance-heavy, and directly tied to whether your business survives.
Below is a realistic breakdown of your options, the pros and cons, and why successful restaurants treat professional bookkeeping with the same importance as hiring a skilled General Manager or Chef.
Option 1: Do Your Own Bookkeeping
Pros
- Saves money upfront – no fees, just your time
- Owner sees every invoice and number personally
- Full control – every invoice coding choice and reconciliation is done by you
Cons
- Restaurant accounting is highly specialized and easy to get wrong
Restaurant bookkeeping is unlike any other business.
Common mistakes: COGS categorization, inventory treatment, accrual accuracy, gift card liability, merchant fee accounting, payroll tip allocation, loan amortization, lease accounting, and sales tax exposure.
One mistake can cost more than a year of outsourced bookkeeping.
- Consumes your time and emotional energy
Owners we meet spend 10–20 hours a week “catching up” on books.
That’s time that should be spent on the floor, training staff, improving food cost, negotiating vendors, or increasing revenue.
- Financial blind spots, incorrect COGS, payroll errors, tax problems
- Higher risk of IRS issues or missed deductions
Incomplete, cash-basis, or incorrect books lead to avoidable tax liabilities and missed deductions.
Option 2: Have Your Existing Staff Handle It
Pros
- Convenient and already on-site
- No added payroll cost if using current team, assuming you don’t add hours
Cons
- Staff are not trained in restaurant accounting
Being great at scheduling or guest recovery does not translate to understanding loan amortization or POS integration.
- High turnover means loss of consistency and knowledge
Restaurant management turnover averages 30–50% per year.
When they leave, so does your bookkeeping knowledge, coding consistency, and password access.
- Increased internal risk when staff handle money
Any time staff handle money, vendor payments, bills, or payroll, the opportunity for error—or fraud—increases.
- Managers should focus on operations, not reconciliations
Option 3: Outsource Only Your Annual Tax Return
Pros
- Your taxes get filed, assuming your books are somewhat presentable
- Lower annual cost than full bookkeeping
Cons
- Tax accountants file what you give them—they don’t fix your books
- No weekly flash reports, no COGS analysis, no operational insights
- You still do all the bookkeeping all year long
Option 4: Hire an Outsourced Restaurant Bookkeeping Firm (The Best Option)
Pros
- Restaurant-specific bookkeeping expertise
We handle QuickBooks Desktop, POS integrations, daily sales audits, payroll, tip allocation, sales tax filing, vendor payables, inventories, COGS, weekly flash reports, and monthly financials for restaurant owners only.
- Accuracy, speed and compliance
Your books aren’t a side project—they’re our entire business.
- Significant time savings (10–20 hours per week)
- Better menu pricing, labor control, and vendor management
- Reduced IRS, DOL, and sales tax exposure
- Cheaper than hiring a full-time (or even part-time) internal bookkeeper
- Dedicated partner who knows the restaurant industry
RAS isn’t a generic accounting shop.
We’ve seen everything—from family-owned pizza shops to multi-unit restaurant groups. We anticipate problems before you even know they exist.
Cons
- None
Conclusion
Yes, you can do your own bookkeeping — but it often costs more in mistakes, lost time, and missed opportunities than hiring professionals.
Bookkeeping is as critical to your business as hiring a skilled General Manager or Chef. Accurate numbers drive better decisions, better margins, and better outcomes.
Restaurants that thrive financially all have one thing in common: they take their accounting seriously.
Ready to Focus on Running Your Restaurant?
Join hundreds of independent restaurant owners who trust Restaurant Accounting Services to handle their bookkeeping, payroll, financial reporting, and accounting systems—accurately, affordably, and on time.
Call Tim at (781) 706-5725
estaurant-accounting.com
Fast onboarding. No long-term contracts. 100% restaurant-focused.