Bookkeeping · restaurants & cafés

Restaurant Bookkeeping from the POS to your tax return

Restaurant bookkeeping for restaurants, cafés, bakeries and food trucks in any state: we bring your POS sales into the books, track food and beverage costs, run payroll with tips and hand over tax-ready books. We work in QuickBooks Online or Zoho Books, with packages from $200 a month.

Who our restaurant bookkeeping is for

Restaurants and cafés with table service

Sales run through a POS, servers earn tips, and food comes from several vendors. We bring all of it into one set of books.

Coffee shops and bakeries

Lots of small tickets every day and constant purchases of ingredients and packaging. We keep an eye on food costs so they don't creep up unnoticed.

Food trucks and catering

Sales happen in different places, sometimes in several cities or states. We track where each sale took place, because the sales tax rules depend on it.

A new restaurant

You're just opening or bought an existing business. We set up the books from the first month, and payroll and sales tax registration before your first paycheck and first sale.

What restaurant bookkeeping includes

POS sales

We record daily totals from your POS: sales, sales tax, tips, discounts and refunds. We match them to bank deposits and track card processing fees separately.

Food and beverage costs

Vendor purchases go to cost of goods sold, separate from rent, payroll and other expenses. Your Profit & Loss shows what share of sales goes to food and drinks.

Payroll with tips

We run payroll in QuickBooks Payroll or Gusto: wages and tips, withholding and payroll taxes, quarterly Form 941, annual Form 940, state reports and W-2s at year-end.

Sales tax and tax-ready books

Sales tax you collect is recorded as money owed to the state, not as revenue, and sales tax returns are filed on the state's schedule. By year-end the books are ready for your business return.

Restaurant tips and payroll: the rules to follow

Tips are the employees' income, but the employer handles the reporting and the taxes. These are the IRS rules in effect for 2026.

Tip reports by the 10th

An employee who receives $20 or more in tips in a month reports them to the employer, in writing or electronically, by the 10th of the following month. Those amounts go into payroll.

Tips are taxed through payroll

The employer withholds income tax and the employee's share of Social Security and Medicare from reported tips and pays the employer's share. A mandatory service charge, such as an automatic percentage for large parties, is not a tip — it's regular wages.

New W-2 boxes

On 2026 Forms W-2, tips the employee reported to the employer are shown separately (box 12, code TP), along with the employee's occupation code (box 14b). Employees use these to claim the tips deduction.

The “no tax on tips” deduction

For 2025 through 2028, an employee in an occupation on the IRS list can deduct up to $25,000 of tips a year from taxable income. It reduces income tax only: Social Security and Medicare on tips are still paid.

Payroll is $150 a month for up to 3 employees, plus $20 for each additional employee. One-time payroll setup is $250; employer registration with the state is $120. All payroll prices →

How our restaurant bookkeeping works: 4 steps

The price depends on how many transactions you have each month, so we pick a package after a short conversation about your restaurant.

A call and a scope estimate

We ask which POS you use, how many bank and card accounts you have, how many employees receive tips and which states you sell in. You get a price before any work starts.

Setting up the books

We connect your bank and cards to QuickBooks Online or Zoho Books and set up a chart of accounts built for a restaurant: food and beverage sales, cost of goods sold, tips payable, sales tax. Setup is $200.

Bookkeeping every month

We categorize transactions, reconcile your bank, cards and POS sales, and send you a Profit & Loss. We ask about unclear transactions right away, while you still remember them.

Closing the year

We hand the books over for your business return — Schedule C, 1065 or 1120-S — and prepare it in-house if needed.

Bookkeeping packages: BASIC — up to 75 transactions a month, $200/mo; STANDARD — up to 150, $350/mo; PREMIUM — up to 250, $570/mo. One-time: QuickBooks or Zoho Books setup — $200, catch-up bookkeeping for past months — from $180 per month. The QuickBooks or Zoho Books subscription is not included. See all bookkeeping prices →

What to prepare

Access to business bank and card accounts — or statements for the period

Access to your POS or its daily sales reports

Food and beverage vendor invoices

An employee list with Forms W-4 and I-9, pay rates and tip reports

Your sales tax permit number and past returns, if any were filed

Restaurant bookkeeping FAQ

How much does restaurant bookkeeping cost?

It depends on how many transactions you have each month: bookkeeping packages are $200, $350 or $570 a month (up to 75, 150 and 250 transactions). Payroll is priced separately, from $150 a month for up to 3 employees. We quote the exact price after a conversation about your restaurant.

How are credit card tips recorded?

They land in the restaurant's bank account together with sales, but they belong to your employees. In the books they are a liability to employees, not revenue, until they are paid out through payroll. Taxes are withheld from them the same way as from wages.

Are tips tax-free now?

Not exactly. For 2025 through 2028, an employee in an occupation on the IRS list can deduct up to $25,000 of tips a year on their own return; the deduction phases out above $150,000 of income ($300,000 for joint filers). Nothing changes for the restaurant: tips still go through payroll, with income tax, Social Security and Medicare withheld.

Who has to file Form 8027?

A large food or beverage establishment: food and drinks are consumed on the premises, tipping is customary, and the employer normally had more than 10 employees on a typical business day in the prior year. The form is filed once a year; if you e-file, it's due March 31 of the following year. If reported tips are under 8% of gross receipts, the employer allocates the difference among tipped employees (allocated tips). We'll check whether your restaurant qualifies during the consultation.

Can we get back some of the tax paid on tips?

Certain food and beverage businesses can claim a credit for the employer's share of Social Security and Medicare taxes paid on part of their employees' tips (Form 8846). It's claimed on the business return, and we check whether you qualify when we prepare it.

Do we collect sales tax on food and drinks?

It depends on the state, and sometimes the city: what's taxable, at what rate, and how takeout and delivery are treated. We check your state's rules, register your business ($130) and file the returns: $100 for a regular return, $25 for a zero return.

Do I need a QuickBooks or Zoho Books subscription?

Yes, we keep the books in QuickBooks Online or Zoho Books and work in whichever one you already have. If you don't have a subscription, we help you choose and set one up: QuickBooks or Zoho Books setup is $200. The subscription itself is not included in the price.

We haven't kept books for past months. What now?

We rebuild them from bank statements and POS reports, from $180 per month, and then move you to a monthly package. By tax season you'll have a complete year.

Let’s start with a free 15-minute interview

Send us a request — we’ll get back to you within one business day, hold a free 15-minute interview and give you a price.

Send a request — it’s free Call: +1 (929) 340-2427