restaurant bookkeeping

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lorraine
lorraine Registered Posts: 404 Dedicated contributor 🦉
in General accounting discussion
I apologise for another question like this, but here goes, I have an enquiry from a restaurant who would like me to help with their bookkeeping, is there anything unusual about there bookkeeping methods?

I am trying to think of the answer myself - I guess there will be wastage, and this would need to be shown on the P & L.

Thank you in advance for your replies.

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  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
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    I do monthly sage postings/management accounts for a restaurant.

    The biggest problem area is staff wages/tips etc and how they are treated. I'm pretty sure there was a thread about on before? Maybe try a search..
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
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    AK002 wrote: »
    I do monthly sage postings/management accounts for a restaurant.

    The biggest problem area is staff wages/tips etc and how they are treated. I'm pretty sure there was a thread about on before? Maybe try a search..

    okay I will search the subject and see what I find! Thanks for your help.
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
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    Here's a bit about Tips

    http://forums.aat.org.uk/showthread.php?t=23285&highlight=restaurant
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
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    may sound like a silly question what does TRONC stand for???
  • AK002
    AK002 Registered Posts: 2,492 Beyond epic contributor 🧙‍♂️
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    Dunno what it stands for but..

    A ‘tronc’ is an arrangement for the pooling and distribution to employees of tips, gratuities and/or service charges in the hotel and catering trade


    Taken from here

    http://www.hmrc.gov.uk/manuals/echmanual/ech13010.htm

    HTH.
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    And for anyone that is interested..

    ..it is derived from the French expression 'tronc des pauvres' or box for the poor!
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    Was that google Dean - or just a vast amount of general knowledge???
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
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    interesting!, I will have to ask them how they distribute their box for the poor!!! lol
  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
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    And the person who keeps and distributes the troncs is a troncmaster - what a brilliant word :thumbup::thumbup::thumbup:
  • Hasan.Ahmet
    Hasan.Ahmet Registered Posts: 87 Regular contributor ⭐
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    Tronc

    And should anyone need to know mechanics of it in practice this is;
    All the service charges and tips paid on restaurant bills are added together.
    Amount then is credited to Tronc and debited to restaurant revenues.
    Tronc then debited and salaries control credited.
    Then when paid through payroll say 5% each to 2 Rest Mngrs. 4% each to 4 head waiters. 3% each to 20 waiters 1% each to 4 trainees=100%
    Usually there is an arrangement about who gets what.
    That clears the accounting entries.
  • Timmne
    Timmne Registered Posts: 37 Regular contributor ⭐
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    I'd be interested to know how you'll account for wastage lorraine - could you shed any light please?

    I can't see there being any way of actually accounting for it since as long as you keep your stock values up to date, there will be no wastage per se, just a reduced gross margin for a higher wastage...

    Unless you're operating a costing environment which is absolutely not going to be the case in a restaurant (!) it sounds like a non-adjustment to me.

    As for your question lorraine, do they want just basic bookkeeping or are they going to need to report on the figures at times other than the year end? Just thinking if they do want to use the figures on a regular basis, you might want to consider asking them to get into the habit of weekly or monthly stock takes as this can massively affect your gross margin if they're not done regularly.
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
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    Thanks for your reply Timmne, I will be finding out more info shortly, and like you have said if they do require regular reporting of the figures I will need to suggest regular stock taking. I don't think from what you have said that recording of wastage will be a requirement, I think I was over complicating things!
  • clearaccounting100
    clearaccounting100 Registered Posts: 49 Regular contributor ⭐
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    Hi i've done bookkeeping for a restuarant and we didn't account for wastage. It just meant an increase of COS and reduced gross profit margin as Timmee said.

    Good luck, hope it goes well
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
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    Thank you, Clear Accounting for your reply.

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