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Accounting for restaurants
Cafeterías, full-service restaurants, food trucks and caterers, with the payroll and sales tax that come with them.
Why restaurant books are different
Restaurants run on thin margins and fast cash, so the numbers that matter are weekly, not yearly: food and beverage cost as a share of sales, labor cost, and whether the register, the card processor and the delivery apps all reconcile to the bank. A monthly close that shows those three lines is the difference between finding a problem in week two and finding it at tax time.
Payroll is the hardest part. Tipped employees have their own minimum wage rules, tips have to be reported and taxed, and larger establishments file Form 8027 to report tip income to the IRS. On the other side, employers can claim a credit for the Social Security and Medicare taxes paid on tips above the minimum wage (Form 8846), which many restaurants never take.
Florida sales tax applies to nearly everything a restaurant sells, and the return is usually monthly. Workers’ compensation becomes mandatory at four employees, part-time included, so the insurance side is tied to the payroll side.
What we handle
- Monthly bookkeeping with food, beverage and labor cost reporting
- Payroll for tipped and hourly staff, with tip reporting
- Form 8027 tip reports and the FICA tip credit (Form 8846) on the return
- Florida sales tax registration and monthly filing
- Entity setup and the tax return for the restaurant and the owner
- Workers’ compensation, liability and property insurance quotes
“Standley and Calvin made the entire process extremely easy and stress-free. I didn’t even have to come into the office—everything was handled smoothly and efficiently. They were responsive, professional, and kept me updated every step of the way. Highly recommend!”
Questions we hear from this industry
What is the FICA tip credit?
A federal credit for the employer’s share of Social Security and Medicare taxes paid on employee tips above the federal minimum wage. It is claimed on Form 8846 with the business return and can be worth a meaningful amount for a full-service restaurant.
Do I have to report my employees’ tips?
Yes. Employees report cash tips to you. Tips are subject to payroll taxes and, generally, to income tax, subject to the deduction for qualified tips in effect for 2025 through 2028. Food and beverage establishments with more than 10 employees on a typical day also file Form 8027 each year.
How often do I file Florida sales tax?
It depends on how much you collect. Most restaurants file monthly, with the return and payment due by the 20th of the following month. Filing electronically and on time also earns a small collection allowance.
Can you work with my point-of-sale system?
Yes. We take the sales reports from your POS and the deposits from your processor and delivery apps, and reconcile them to the bank each month.
Tell us what you do
Book a free 15-minute consultation online, or call us today. In person or remote, in English or Spanish.