cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Senior Explorer ***

QuickBooks and Bookkeeping for Restaurants

I have a client that owns a wholesale bakery that has chosen to buy a cafe business.  Does anyone have  experience in working with Square + commercesync to interface with QB?  Is there someone out there I can connect with who can help with this as well as general bookkeeping for restaurants with QuickBooks?  

Solved
Best answer 03-01-2018

Accepted Solutions
Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

hi Laura!

 

Welcome to the community!  I've been a bit MIA during this pre-tax season, but usually people just respond to questions right away.

 

As some of the others mentioned, I'm in the bookkeeping/back office ecosystem space for independent restaurants and bars.  I have not specifically done a square to QBO via commercesync hook up.  But it's actually something I've been waiting for a chance to test out.

 

Usually they will walk you through the process... it's all about mapping the POS items correctly to accounts and/or items within Quickbooks.  

 

One thing I will say, from experience POS salespeople/tech help aren't really going to talk you through your POS set up in terms of architecture.  In other words, to have a good sync that makes sense, your POS 'map' has to make internal sense to what you want to collect from it.  Like a table of contents sort of.  Likewise, when you translate that data via commercesync, your QBO set up has to make sense, and it has to do it three ways!

1.  CAPTURE Things in Square that you've taken the time to set up right need to continue to have integrity in the way they are placed in Quickbooks by commercesync.

2.  CONSOLIDATE Things in Quickbooks need to be able to interpret commercesync correctly, keeping in mind that platform's capabilities and idiosyncrasies.

3.  REPORT  Finally, Quickbooks needs to be set up in such a way that it can "spit out" information that makes sense to you and your client.

 

This all is not as complicated as it sounds, you just have to sort of decide in advance what you want to capture, what you want to consolidate, and what you want to report.  Things like categories of sales, discount types, time of day sales, parent / child totals for some categories, etc. etc.  

 

You can only track in QBO what you've tracked in Square and brought over through Commercesync.  Once things get put into categories or combined in accounts, it's more difficult to tease that information apart again.

 

My advice:  have a conversation with your client on the structure of both the POS and QBO related to what they want to see for operations.  And don't forget what will need to be used for all the tax and official reporting needs too!

 

*kristen

View solution in original post

17 Comments
Established Community Backer ***

Re: QuickBooks and bookkeeping for restaurants

Hi @Laura_Siegel - welcome to QB Community! We have lots of members in the food & bev industry who may be able to help you out. @Anonymous, any thoughts?

Senior Explorer ***

Re: QuickBooks and bookkeeping for restaurants

Hi Emily,

Thank you for replying to my question and I can see this community will be of great help for me in the future.  I hope I can be of help too:)    How does this work?  Do I contact @girlFirday directly? 

Established Community Backer ***

Re: QuickBooks and bookkeeping for restaurants

Hi @Laura_Siegel - I'm so glad you're finding QB Community to be the warm and welcoming place it's designed to be :smileyhappy:

 

@jessbru99568 has a thriving bakery business - maybe she has some thoughts for you?

Established Community Backer ***

Re: QuickBooks and bookkeeping for restaurants

@Laura_Siegel Hi, I'm happy to help if I can. I'm not exactly understanding the question. Would you mind to give a little more detail, please? Thank you! :)

Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

Hey Laura (@Laura_Siegel),

 

Welcome to the community. One of my old bakeries started using Square when it was first available as a POS. We really loved it and the ease of customizing the interface. I've never personally used Commercesync, but @Anonymous specializes in restaurant accounting and has deep roots in the industry. 

 

Just to clarify, what's your client is trying to accomplish using Square + CommerceSync?

Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

hi Laura!

 

Welcome to the community!  I've been a bit MIA during this pre-tax season, but usually people just respond to questions right away.

 

As some of the others mentioned, I'm in the bookkeeping/back office ecosystem space for independent restaurants and bars.  I have not specifically done a square to QBO via commercesync hook up.  But it's actually something I've been waiting for a chance to test out.

 

Usually they will walk you through the process... it's all about mapping the POS items correctly to accounts and/or items within Quickbooks.  

 

One thing I will say, from experience POS salespeople/tech help aren't really going to talk you through your POS set up in terms of architecture.  In other words, to have a good sync that makes sense, your POS 'map' has to make internal sense to what you want to collect from it.  Like a table of contents sort of.  Likewise, when you translate that data via commercesync, your QBO set up has to make sense, and it has to do it three ways!

1.  CAPTURE Things in Square that you've taken the time to set up right need to continue to have integrity in the way they are placed in Quickbooks by commercesync.

2.  CONSOLIDATE Things in Quickbooks need to be able to interpret commercesync correctly, keeping in mind that platform's capabilities and idiosyncrasies.

3.  REPORT  Finally, Quickbooks needs to be set up in such a way that it can "spit out" information that makes sense to you and your client.

 

This all is not as complicated as it sounds, you just have to sort of decide in advance what you want to capture, what you want to consolidate, and what you want to report.  Things like categories of sales, discount types, time of day sales, parent / child totals for some categories, etc. etc.  

 

You can only track in QBO what you've tracked in Square and brought over through Commercesync.  Once things get put into categories or combined in accounts, it's more difficult to tease that information apart again.

 

My advice:  have a conversation with your client on the structure of both the POS and QBO related to what they want to see for operations.  And don't forget what will need to be used for all the tax and official reporting needs too!

 

*kristen

View solution in original post

Senior Explorer ***

Re: QuickBooks and bookkeeping for restaurants

HI there and thank you for your reply.  I have a client that is opening a small cafe.  I use QB Entreprise Solutions for his whole sale bakey business (I do the books for his Dad and he uses Entreprise Solutions so that is why I do so for his son).  And now he is taking the next step to open his own place.  My client is using Square at the Cafe.  I spoke with the contact over at Square and he told me that his interface is with QBO which I really do not like for many resaon.  :)  So I want to continue with QB Entreprise Solutions.  The Square contact told me about using Square + commercesync to interface with QB.  Do you have experience with this?  Also I have not done books for a restaurant before and I am really not sure how much time it takes to do so each week.  Is it a daily time, every couple of days,, once a week?  Is it hours each time?  I want to be able to quote the client for work but not sure where to start.  

Senior Explorer ***

Re: QuickBooks and bookkeeping for restaurants

Thanks!  @jessbru99568  reached out and I started a dialoque with them.  This is great!! 

Senior Explorer ***

Re: QuickBooks and bookkeeping for restaurants

Hi Kristen!  Thank you for your reply.  I will look more closely over your reply when I get back from work today but in the mean time I wanted to tell you more about what is going on.  I have a client that is opening a small cafe.  I use QB Entreprise Solutions for his whole sale bakey business (I do the books for his Dad and he uses Entreprise Solutions so that is why I do so for his son).  And now he is taking the next step to open his own place.  My client is using Square at the Cafe.  I spoke with the contact over at Square and he told me that his interface is with QBO which I really do not like for many resaon.  Smiley Happy  So I want to continue with QB Entreprise Solutions.  The Square contact told me about using Square + commercesync to interface with QB Entreprise.   I have been in business for 15+ years but I have not done books for a restaurant before and I am really not sure how much time it takes to do so each week.  Is it a daily time, every couple of days,, once a week?  Is it hours each time?  I want to be able to quote the client for work but not sure where to start.  I appreciate your help and I look forward to going through what you sent and diving in to this.  

Established Community Backer ***

Re: QuickBooks and bookkeeping for restaurants

@Laura_Siegel sorry for the late response. We use Square alot, but I am mostly familiar with the QBO versions as that's what I use for all our businesses and don't know how the integration with the desktop versions work. :)

Senior Explorer ***

Re: QuickBooks and bookkeeping for restaurants

Hi Kristen,

I spoke with someone over at commercesync and they are working with me in set up.  I have a meeting sceduled next week with my client to discuss what will be involved and give them an idea of my time needed.  Since you have the expertise in this, what is your experience in quoting someone to do the work?  Is it daily, weekly and how many hours needs to be done each time?  What is your best recommendation?  I really don't know where to begin and would like a place to start.  Of course as we get more involved I can plan to revise and make sure to let them know that.  What are your thoughts?  

 

I so appreaicte your help with all this and I look forward to hearing from you.   Laura

Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

Hi Laura!

 

Restaurants, bars, and basically the food&bev space in general can vary wildly in the amount of time required for a client.  Of course, a lot of it depends on volume of sales, number of employees, and the mix of products being used to create it all.  But frankly, it is just as dependent as things that can't be known in advance such as the level of involvement/committment from ownership and managers, the workstyles of employees and pricipal actors, and what kind of information all of these people will require to be reflected back to them.  Openness to technology and innovation also has *a lot* to do with all of this as well.

 

The hours will definitely be more in the beginning.  ESPECIALLY if the goal is a set up and systems that will cost LESS hours in the future... saving time takes time up front!

 

For you, i'd recommend starting with an hourly rate... perhaps capped off at a particular number of hours.  This with the understanding that after, say, three months, you will be better able to provide a flat rate quote that will work for all of you.

Super Explorer ***

Re: QuickBooks and bookkeeping for restaurants

 I was wondering if you could help with the following issues.  I have been entering purchase invoices into QB desktop as what ever item it is, so Food Cost of Goods Sold.  So the owner is now looking at the numbers and asking why we have a loss.  So I said we need to enter inventory.  So as I said all items we buy is under COGS.  My first question would be should I change all of those to Expenses instead of COGS?  And if so, what new accounts should I add?  When she starts giving me the inventory numbers in the beginning of the week and at the end of week, we want to do a journal entry instead of using QB for that.  So I'm not sure how I would set up the journal entry and what accounts do I need to add or change.

 

I hope you get what I mean.  I'm about to lose my mind over this.  I use to know this stuff back in the 90's, but I didn't use it after that.  Plus now with QBs doing everything.  Oh 1 more question.  Do we have to close each month out like we did manually or does QB do it?  I have been told two different answers.

 

Sincerely,

Angela 

Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

Hi Angela,

 

To enter the inventory that remains you are going to do a Journal Entry.

Before you begin, make sure you have Inventory accounts in your chart of accounts.  

These Inventory accounts should be created as "Other Current Asset" accounts.  Make one for each type of COGS - ie:  Food Inventory, Beverage Inventory, Alcohol Inventory.  I also like to make them sub-accounts of a more general "Inventory" account. 

 

To Create your JE: 

1. Credit your cost of goods categories (Food, Beverage, Alcohol, etc.) for the monetary value of the inventory on hand.

2. Debit your inventory accounts (Food Inventory, Beverage Inventory, Alcohol Inventory). 

3. Date the JE the day the inventory was taken (or the last day the count applies to).

 

For the first time you record inventory, this JE will be your only entry.

However, for the following month, or week, or whatever, you will need to reverse the prior inventory and then replace with the current one.

 

To Do This:

1.  Locate the JE for the prior inventory value for that category.

2. Reverse the JE, and date the reversal the date of your new inventory for that category.

 

By doing inventory this way, you can book inventory for different categories separately.  You also will always be booking the dollar value rather than the *difference* in product on hand.

 

Also, to answer your question, because this process moves the cost of product from the COGS accounts to the balance sheet assets, it will reduce the amount of loss on the profit and loss for this first entry.

 

But be careful!  Sometimes if inventory decreases from one month to the next, it will actually increase the COGS expenses on the profit and loss.

 

In other words, sometimes the answer to the question "why are we showing a loss"  is "because we spent too much."

 

Good Luck!

Kristen

Super Explorer ***

Re: QuickBooks and bookkeeping for restaurants

Thank you for answering so quickly.  I just want to clarify what you said about changing the COGS that I have now, (for every invoice that came in just in that month) to when I enter the items off the invoice and into the correct account, should it a Food Expense or Food - COGS?  Meaning  should I have both?


@Angel11-72 wrote:

 I was wondering if you could help with the following issues.  I have been entering purchase invoices into QB desktop as what ever item it is, so Food Cost of Goods Sold.  So the owner is now looking at the numbers and asking why we have a loss.  So I said we need to enter inventory.  So as I said all items we buy is under COGS.  My first question would be should I change all of those to Expenses instead of COGS?  And if so, what new accounts should I add?  When she starts giving me the inventory numbers in the beginning of the week and at the end of week, we want to do a journal entry instead of using QB for that.  So I'm not sure how I would set up the journal entry and what accounts do I need to add or change.

 

I hope you get what I mean.  I'm about to lose my mind over this.  I use to know this stuff back in the 90's, but I didn't use it after that.  Plus now with QBs doing everything.  Oh 1 more question.  Do we have to close each month out like we did manually or does QB do it?  I have been told two different answers.

 

Sincerely,

Angela 


 

Anonymous
Not applicable

Re: QuickBooks and bookkeeping for restaurants

you don't necessarily have to change the COGS you have now.

i just prefer to break down cogs by different categories, but you don't have to.

 

but the answer is, yes, invoice expenses related to food and other re-sold product should be booked to COGS accounts, not to expense type accounts.

Super Explorer ***

Re: QuickBooks and bookkeeping for restaurants

I'm a little bit confused only because some sights show 3 different types of accounts. 

Food Inventory 

Beer inventory  and the others that we have

Then

Food COGS

Beer COGS and the same as above

 

Then

Food expense

Beer expense

 

So like I said when the bill comes in I enter the $ amount into Food COGS or what item it is.  Some people have told me to make it an expense.

 

But your saying that I'm entering the items as a COGS is ok. And not an expense account.  Why do people have both type of accounts?  

Need to get in touch?

Contact us