General Questions (Restaurant Business)

Hi Guys,

I have started a new restaurant and want to keep track of my accounts. Manual accounting is done through books, but i want to get more professional reports.

I have day to day similar entries, so if you guys could help me one time with these entries it could make my life easier.

My restaurant is small and so we do cash sales and cash purchases (not creditors as such). So if someone could help me out on how to post these below entries it would be really helpful.

  1. Daily cash sales - at the end of each day I take a sales report from my punching system and get the total sales for the day. How to correctly post this as a single sales.
  2. Cash Purchases - We purchase on a daily basis (Cash only). for example: chicken, eggs, milk, etc basically raw materials for making food.
  3. Cash expenses - Expenses such as cleaning liquid, petrol for delivery vans, etc. Things that are not related to making food.
  4. Employee salary (in advance) - we pay our employees on a daily or weekly basis (not fixed amounts) depending on the employees request. how to keep track of all these amounts.
  5. Savings account - everyday a certain amount is sent to our savings account.

Any help would be really appreciated.

Read the Guides. Link is at the top of the web site page.

Your first three items can be handled via Spend Money and Receive Money from a cash or bank account, depending on where the cash comes from and goes to. The savings account can be set up as a bank account and the Transfer Money function used for the deposits.

Employee payments will require creating employees and payslips. Again, read about all this in the Guides. If you have specific problems, post the details on the forum so someone can help.

If you’re new to double-entry accounting, check out

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Cash Sales (Point # 1) does not get posted under sales? How do I know my total sales for the month at the end of the month if I “Receive Money” the entry everyday? What I did was create “Cash Sales” account under Customers, and then made a sales invoice to “Cash Sales” with a receipt. Is this correct?

Cash Purchases (Point # 2) I have created 3-4 main suppliers of our raw materials from whom we purchase on a daily basis. But we pay them in cash daily. Cant i link the cash i pay to these accounts, rather than the “Spend Money” option?

Cash Expenses (Point # 3) - Could you please show an example on how would I post, say, fuel $20. This is paid from the cash present in the counter and does not need to be reimbursed. Do I need to edit/add the names of the expenses according to my business needs?

Savings Account (Point # 5) - Thanks! I got that done (at least one thing by myself :smile:)

Yes, it gets posted to an income account of your choice and naming. When I said to handle it via the Spend Money function, I was referring to the method for posting it there. Again, please read the Guides to understand fundamentals of how Manager works.

Unfortunately, you seem to have misunderstood what you did. You cannot create accounts under Customers, only customers. Accounts are created under Settings >> Chart of Accounts.

You can do it this way, but there is no need to create a sales invoice. Just Receive Money, because you have no account receivable and no specific customer, but rather a total of cash sales for a period.

You can, but only by creating purchase invoices with subaccounts for the individual suppliers. You will still Spend Money. It will be more steps, but will give you the ability to review supplier history.

First, you must create a cash account. Perhaps you will name it Counter Cash. Spend Money from Counter Cash and allocate the $20 to an expense account, such as Motor Vehicle Expenses. In the transaction description, write something like “Fuel for truck.” That’s all there is to it.

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Ok! Thanks for the clarification. @Tut
Points 1, 3, 4 & 5 are crystal clear for me. Now the only trouble i have is in understanding point # 2 (Cash Purchases).

My confusion is that, as a restaurant business, we have 2 types of expenses: a) Purchase of ingredients (milk, poultry, etc. but we do it on cash on a daily basis. b) all other expenses which are not related to food making or are non-food items in nature.

While, I have understood how to post expense type b in the system. I am unable to post expense type ‘a’. Not only i want these 2 types of expenses shown separately. I also want to know my supplier history. So could you please explain this point a little more elaborately.

Also, something just came to mind. We have our special guests/relatives coming in once/twice a month. We do not charge them for the food (sometimes). But we do punch in the sales in the system. How would you record this loss or expense in the system.

Thanks a lot

If you want to have supplier history, you will need to record your type ‘a’ purchases through purchase invoices so you can later print supplier statements. Create a purchase invoice and allocate the transaction to the appropriate supplier (suppliers must be created in advance). At this point, you have not yet recorded the actual expense, only the obligation. To complete the transaction, view the purchase invoice and click on Spend Money. Select the account where you get the cash. Categorize the expense to an expense account named something like Food Purchases. The purchase invoice will then show Paid in Full.

To record your type ‘b’ expenses, use a different expense account (or several accounts by category). You can pay these expenses by cheque, cash, credit card, etc. If paid immediately, you can use Spend Money. If purchased on credit, use purchase invoices. As with type ‘a’ expenses, if you pay cash immediately but want a supplier history, you will have to use the two-step, purchase invoice method described above. If supplier history does not matter, going directly to Spend Money is faster.

There are several approaches. If you don’t actually make a sale, there is no need to record revenue at all. But if you want to know how much output the restaurant had, you can create an expense account something like Promotional Meals (as though you were giving away meals to advertise your business). Use a journal entry to record the event. Debit the normal sales account just as you would for any other meal. Credit the Promotional Meals account in the same amount. Your P&L statement will show the revenue and the offsetting expense.

Thank you so much for your help @Tut. Things are clearing up pretty well.

Really appreciate your time and effort in this regard.

I would like to know another thing in a different scenario regarding the “Promotional Meals”.

What if we have not punched it as a sales (examples $ 150). Then how would we show this $ 150 as a loss/expense in our accounts?

Also, I just took a Cash Summary of 1st July. After all the entries done for the day, the money i transferred to Bank Account from Cash Account (as Savings) does not show under outflows. Similarly, I paid an employee part of his salary in advance in cash. But that does not show either. Is it because i used the payslip method instead of the Spend money option. Whats the entry to “Spend Money” for advance salary payment to an employee (created in system)?

There has been no expense to record, so no transaction is necessary. You already recorded your expenses for the food when you bought it. If you pay employees, you will record that normally. Note that in my earlier advice, sales and promotional meals offset each other so there was no net effect on earnings. If you record nothing, the result is the same.

This is not an outflow. It is a transfer from one pocket to another.

I’m not qualified to answer this question. I don’t use the Payslip module.