Spring Cleaning for Your Finances: A Restaurant Accounting Checklist

Spring isn’t just for deep-cleaning your kitchen—it’s the perfect time to tidy up your restaurant’s finances, too. A well-maintained financial system helps improve cash flow, lower costs, and set your business up for long-term success.

This restaurant accounting checklist will help you identify inefficiencies, clean up your books, and optimize profitability as you head into the next quarter.

Cost of Goods Sold: Controlling Inventory & Food Costs

COGS is one of the biggest expenses in a restaurant. Keeping it in check is essential for protecting margins.

• Vendor Statement Reconciliation

  • Compare vendor statements against your invoices to catch pricing errors and ensure all costs are accounted for.

• Perfect Cost Analysis

  • Break down each menu item to calculate exact ingredient costs and spot pricing inconsistencies.

• Menu Engineering & Standardization

  • Define how each menu item should be prepared, including ingredients, portion sizes, and step-by-step instructions.

  • Analyze top-performing dishes and those driving up costs—then adjust pricing, portioning, or supplier contracts accordingly.

• Vendor Price Comparisons

  • Regularly compare prices for high-volume, high-cost ingredients across multiple suppliers.

• Waste Logs & Tracking

  • Monitor food waste to uncover inefficiencies and adjust portion sizes or purchasing habits.

• Comps, Discounts & Returns

  • Analyze the impact of discounts and returns on profitability. High comp rates may indicate theft or operational issues.

Read more here about how menu engineering can improve your restaurant’s profitability!

Labor: Managing Workforce Costs Without Cutting Corners

Labor costs can spiral out of control without the right oversight. Now is a great time to review schedules, optimize staffing, and ensure compliance with wage regulations.

• Labor Cost Analysis

  • Compare labor costs against sales trends to identify overstaffing or scheduling inefficiencies.

• Payroll Reconciliation

  • Verify that payroll expenses match actual hours worked. Catch errors before they impact your bottom line.

• Overtime & Compliance Check

  • Ensure compliance with state and federal labor laws to avoid penalties.

• Tip Reporting & Allocations

  • Double-check tip distribution and ensure proper reporting to stay compliant with tax regulations.

Read more here about optimizing labor costs while retaining staff!

Financial Statements: The Key to Restaurant Profitability

Your financial statements tell the real story of your restaurant’s health. Spring is the perfect time to review and adjust based on recent trends.

• Profit & Loss Statement

  • Compare performance against your budget, prior months, and prior years to spot areas for improvement.

• Balance Sheet Reconciliation

  • Ensure all assets, liabilities, and equity accounts match supporting documentation (bank statements, credit card balances, etc.).

• Cash Flow Forecasting

  • Forecast short-term (next 1-2 weeks) and mid-term (next 2-3 months) cash flow to anticipate potential cash shortages.

Read more here about the key financial reports every restaurant needs to track!

Business Taxes & Compliance: Staying on Track

Avoid penalties and last-minute stress by staying ahead of tax deadlines and compliance requirements.

• Income Tax & Business Licensing

  • Confirm that all state and federal tax filings are up to date.

• Liquor License & Permits

  • Verify that all permits are renewed and in compliance with local regulations.

• Business Property Tax & Other Fees

  • Check for any outstanding tax liabilities or fees that may have been overlooked.

Read more here about how to prepare for restaurant tax season!

Technology Stack: Is Your Accounting System Helping or Hurting?

Your restaurant’s accounting tech stack should make financial management easier, not harder. If your tools aren’t helping you streamline operations, it might be time for an upgrade.

• Accounting Software Audit

  • Are you using the right accounting software for your restaurant’s needs?

  • If your system lacks restaurant-specific reporting tools, QuickBooks Online or Restaurant365 might be better options.

• POS & Inventory Integrations

  • Does your POS system integrate seamlessly with your accounting software? Toast, Square, and Lightspeed all offer strong accounting integrations.

• Payroll & Workforce Management

  • Evaluate payroll providers like ADP and Gusto to ensure accurate wage calculations and tax filings.

• Accounts Payable Automation

  • If you’re manually processing invoices, xtraChef, MarginEdge, or Ottimate can automate invoice approvals and payment tracking.

Read more here about the best accounting and POS tools for restaurants!

Final Thoughts

Spring cleaning isn’t just about decluttering your physical space—it’s about streamlining your finances for a more profitable year ahead.

At ACE’d Accounting Solutions, we work with all of these tools—and more—to tailor accounting solutions to the unique needs of restaurant owners. If your books need a refresh, we’re here to help. Schedule a free consultation today! Get started here.