Proper entering of z report for a restaurant/bar business

Raedena · ‎January 07, 2019

I would like to know proper way of entering information from a z report into QB Desktop for sales tax reporting purposes, cleaning undeposited funds. State of WA has liquor tax and sales tax, I want to know proper way of recording these amounts along with paid outs, tips are cashed out at end of shift. Two different people doing these books have not offset them in liability accounts, one pays sales tax directly from what is deposited in the bank. None of these seem right to me! I need help in proper procedure for recording sales for this type of business and accounts needed for them.

Help!

Anonymous · ‎January 08, 2019

Here's a good write up on how to do this:

https://www.accountexnetwork.com/blog/2013/04/restaurant-accounting-with-quickbooks-recording-daily-...

qbteachmt · ‎January 08, 2019

I like this blog, with images:

https://longforsuccess.com/daily-sales-summary-for-retailers-restaurants-ecommerce-and-more/

You won't use Undeposited Funds. In your business, you account for funds already, everywhere, such as Safe = Bank type account in QB, and Cash Register(s) = Bank type account in QB, and even the ATM = Bank type account, in QB. The method for Sales Summary ends at 0, because everything is accounted for and there is no UF at all.

Tips is different; tips is your Liability. But, the Taking of Tips as cash is an Employee Loan from one of those sources of Cash. Then, in Payroll, you "settle up." You post the Liability to payroll as Gross Taxable income, taxes compute, and there is an Employee Loan Repayment that is a Net Pay Deduction to show they already took that much as Cash.

"one pays sales tax directly from what is deposited in the bank."

No, that is not anywhere near Correct. That is Banking, not Sales, not taxable vs nontaxable, and worse, collections include Sales taxes, so this would be paying Sales Taxes on Sales Taxes collected.

Anonymous · ‎January 11, 2019

Raedena,

There is a basic format, but frankly it is best described by using your particular Z report as an example. Can I ask what kind of POS you are using?

And you are right, I agree with what others have said, and what your gut is telling you -- the treatment of sales tax is just *wrong*.

I also use a zero out method when entering Z reports. But I also use clearing accounts for some payment types, so that amounts that are posted to the bank account aren't a mismatch for what is actually deposited.

I'm happy to go through your Z with you, if you'd like!

Kristen Nies Ciraldo

Raedena · ‎January 11, 2019

They are using Tab King, tax included in drink price, tax computed on food, tips cashed out. I have been having entries done general journal, zero out. Weren't doing before I came, now have undeposited funds messed up again, sales tax that looks like we're owed. I created liability account and making sure gets paid from there and our state B&O tax expenses. Was doing that before I left, worked great, new accountant went back to messy one, now a mess again. Client wanted me back so changing it again. Looking for a format example to double check myself since this is first type of client I've handled. Should be proper income accounting, liability accounting, correct COG against purchases, no tips liability account, and no undeposited funds. We deposit credit slips directly from journal and remain is cash on hand (against cash deposited). This equals our till and petty cash. Now I have a mess to fix...again

qbteachmt · ‎January 12, 2019

We gave you links that are exactly what you asked here, "Looking for a format example to double check myself since this is first type of client I've handled."

Did you review them?

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Proper entering of z report for a restaurant/bar business