A Restaurant Chart of Accounts that Any Bookkeeper or Accountant Can Use

Are you trying to find the perfect chart of accounts for your restaurant? Well, look no further!

One of the few businesses that manufacture raw materials and sells them in the same facility, restaurants are truly one of a kind.

Although it takes a lot more than great food and service for a restaurant to be successful, there’s nothing more vital to the establishment’s long-term success than effective bookkeeping and accounting.

Here is where a Chart of Accounts comes into play — an organized system that will help you better understand if your restaurant is profitable, how it makes money, and if you are losing money, and exactly where your dollars went.

Think about the Chart of Accounts as the plate you create the masterpiece of an amazing dish, without the basic blank canvas of the plate (or for this matter the chart of accounts), no matter what you put on top will surely fall to the ground (and similarly your business will fail).

As you begin to organize better each account associated with your restaurant, you will gain a greater short- and long-term understanding of your business. In turn, you will become financially aware and build a better business.

Read Also: Record Daily Restaurant Sales Using Journal Entries

Mise En Place (Everything in Its Place)

For those of you who know anything about the restaurant industry, you understand “Mise En Place” – a French culinary phrase which means “putting in place” or “everything in its place.”

A proper Chart of Accounts functions the same way as an organized back off the house restaurant station. Everything has its proper place, everything is located conveniently, and it will add value to your restaurant if set up properly.

Avoid The Preloaded Template, Get Restaurant Specific

Most accounting software comes preloaded with a few different chart of account templates. You will be asked what industry you operate within, and then you will be given a preset chart of accounts.

The offerings may have too many accounts and subaccounts; on the other hand, it may have too few. So feel free to use the chart of accounts provided.

This article will give you a complete restaurant chart of accounts and a quick overview to help you understand the basics of your chart of accounts.

This is a simple framework that will lead you down the path of generating the best chart of accounts for your business. Let’s be real; at the end of the day, the chart of accounts in QuickBooks is here to serve you.

Restaurant Chart of Account Overview

Below is a quick overview to help you structure your chart of accounts.

1000 – 1999 Assets

2000 – 2999 Liabilities

3000 – 3999 Equity

4000 – 4999 Income or Revenue

5000 – 5999 Cost of Goods Sold

6000 – 7999 Expenses

8000 – 8999 Other Income

8000 – 8999 Other Expenses

Restaurant Sample Chart of Accounts

Below you will find a detailed chart of accounts. This is a sample specifically for restaurant businesses. Though not always inclusive, this should be informative enough to set you on your way to The Restaurant CFO success.

Account Number	Account Name	Account Category
1000	Cash On Hand	Bank
1010	Bank Account 1	Bank
1020	Bank Account 2	Bank
1030	Bank Account 3	Bank
1100	Accounts Receivable (A/R)	Accounts receivable (A/R)
1150	Credit Card Receivable	Other Current Assets
1175	House Account	Other Current Assets
1200	Inventory	Other Current Assets
1210	Inventory: Food Inventory	Other Current Assets
1220	Inventory: Beverage Inventory	Other Current Assets
1230	Inventory: Bar & Consumable Inventory	Other Current Assets
1400	Prepaid Expenses	Other Current Assets
1500	Fixed Asset Computers	Fixed Assets
1530	Furniture & Fixtures	Fixed Assets
1540	Leasehold Improvements	Fixed Assets
1600	Accumulated Depreciation	Fixed Assets
1700	Capitalized Start Up Expenses	Fixed Assets
1800	Security Deposits	Other Assets
2000	Accounts Payable (A/P)	Accounts payable (A/P)
2110	Credit Card 1	Credit Card
2120	Credit Card 2	Credit Card
2130	Credit Card 3	Credit Card
2210	Sales Tax Expense	Other Current Liabilities
2220	Payroll Expenses: Contract Labor	Expenses
6100	Direct Operating Expenses	Expenses
6110	Direct Operating Expenses: China – Glassware – Flatware	Expenses
6120	Direct Operating Expenses: Restaurant & Kitchen Supply	Expenses
6130	Direct Operating Expenses: Cleaning Supply	Expenses
6140	Direct Operating Expenses: Decoration & Guest Supply	Expenses
6150	Direct Operating Expenses: Linen Services	Expenses
6160	Direct Operating Expenses: Permit & License	Expenses
6200	Cleaning Services	Expenses
6300	Marketing Expenses	Expenses
6400	Advertising and Promotion	Expenses
6500	Travel	Expenses
6600	Automobile Expenses	Expenses
6700	Meals & Entertainment	Expenses
6800	POS Fee	Expenses
6900	Telephone and Internet	Expenses
7000	General and Administrative	Expenses
7010	General and Administrative: Bad Debts – Over/Short	Expenses
7020	General and Administrative: Bank Fees	Expenses
7021	General and Administrative: Bank Fees: Bank Fees – Sub	Expenses
7022	General and Administrative: Bank Fees: Merchant Account Fees	Expenses
7030	General and Administrative: Insurance Expense	Expenses
7100	Legal & Professional Services	Expenses
7110	Legal & Professional Services: Accounting & Bookkeeping	Expenses
7120	Legal & Professional Services: Consulting Fees	Expenses
7130	Legal & Professional Services: Legal Fees	Expenses
7200	General and Administrative: Office Expenses	Expenses
7210	General and Administrative: Office Expenses: Dues & Subscriptions	Expenses
7220	General and Administrative: Office Expenses: Office Supplies	Expenses
7300	Facilities	Expenses
7310	Facilities: Rent & Lease	Expenses
7320	Facilities: Utilities	Expenses
7330	Facilities: Garbage Removal	Expenses
7340	Facilities: Pest Control	Expenses
7350	Facilities: Repairs and Maintenance	Expenses
7400	Equipment Rental	Expenses
7500	Sales Tax Expense	Expenses
7999	Ask My Accountant	Expenses
8100	Interest Earned	Other Income
8200	Other Miscellaneous Income	Other Income
9000	Taxes and Fees	Other Expense

The outline above is a great sample chart of accounts and one I have used it for multiple clients. However, I modify the account to fit each client’s specific situation. For instance, maybe you specialize in Eastern cuisine and offer sake instead of wine?

Well, you must track that, so you’d replace the wine in 5340 with sake. The same concept can be extrapolated through the rest of the chart of accounts. For example, perhaps you have five bank accounts instead of one: Use the above framework and expand!

Recommended Payroll Configuration

Yes, being a frugal business owner is important—wasteful spending results in income statements that show negative numbers. Most small business owners can agree on that.

However, there is a vast difference between being frugal and being cheap. In the service of frugality, I recommend using a full-service payroll provider like Gusto.

Managing weekly payables is challenging enough before worrying about making all the correct weekly, monthly, and quarterly tax payments to the correct departments.

The chart of accounts above is designed to be integrated with a full-service payroll provider like Gusto: 5 Minute Payroll. I recommend you use them and click here to get your first month free.

Final Thoughts

After the first review, the restaurant chart of accounts can be quite overwhelming, but don’t fret! Remember that the goal is to keep the income statement on one page so you can quickly review the financial performance of your business.

There are many different ways to tackle the world of The Restaurant CFO as well as many ways to set up your chart of accounts.

Focus on the key items that work for your business and ensure you are tracking all your essential margins highlighted in the above, like labor, food cost, discounts, and food/beverage comps.