Bookkeeping for restaurants and food businesses in BC
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Point-of-sale reports, cash, tips and two sales taxes on different items make a restaurant’s books harder than they look. We reconcile them every month.
Short answer: a BC restaurant’s books have to tie the point-of-sale reports to the bank, account for cash, treat tips the right way in payroll, and charge GST at 5% and PST on the right items, with liquor carrying its own PST rate. Orbis Accounting Ltd. reconciles that every month, files GST and PST, runs payroll and prepares the year-end return.
What is hard in a restaurant’s books?
- Point-of-sale versus bank. Card batches settle net of fees and on their own days, so daily sales and deposits never line up without reconciling.
- Cash. Cash sales need a daily record the CRA can follow, not only the deposit.
- Tips. Whether a tip passes through the business or goes straight to staff changes how payroll treats it.
- Two sales taxes on different items. GST applies to restaurant meals, PST applies to some items and not others, and liquor has a PST rate of its own.
- Payroll with shifts, part-time staff and turnover, with ROEs when people leave.
What we do each month for a restaurant
- Reconcile POS reports, card settlements and deposits to the bank.
- Record cash sales from your daily close-out.
- File GST and PST, with liquor and food on the right lines.
- Run payroll, handle tips the way they are paid, remit deductions and issue T4s and ROEs.
- Give you a monthly profit and loss, with food and labour costs visible.
Who this fits, and who it does not
It fits owner-run restaurants, cafés, bakeries, food trucks and caterers in BC, on any common POS that exports sales reports. It does not fit a group of locations that needs audited statements or a full-time in-house controller.
Do I charge PST on liquor at my restaurant in BC?
Yes. Liquor carries its own PST rate in BC, separate from the general rate. The restaurant guide below sets out the rates and what else PST applies to.
How should tips be handled in payroll?
It depends on whether the tip is controlled by the business or paid directly to staff. The restaurant guide explains the difference.
What records does the CRA expect for cash sales?
A daily record of sales that ties to the deposits, kept with the supporting documents. The cash sales guide covers what to keep.
Do you work with any POS?
We work from the sales reports your POS exports, alongside QuickBooks Online, Xero or Sage 50.
Restaurants: PST, GST and tips →
Food cost and inventory: cost of goods sold →
Reconciling Square and Clover deposits →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca