How it runs for restaurants and hospitality businesses
We reconcile operating, payroll and tax-reserve accounts monthly, match each deposit to the Z-report or platform statement it settles through tender clearing accounts, post fees and commissions separately, and reconcile the purchasing card to receipts. Anything unexplained is listed for you rather than plugged.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for restaurants and hospitality businesses
- Match each card batch to the Z-reports it settles by tender and date
- Tie cash deposits to the deposit log and report over-and-short by location
- Post processing fees, platform commissions and gift-card program fees separately
- Reconcile purchasing cards to receipts for supplies, repairs and smallwares
- Report every unexplained deposit or withdrawal monthly with a recommended next step
The KPI that matters here
Zero unreconciled items older than 30 days across operating, payroll and tender clearing accounts, with fees fully posted.
Restaurants compliance notes
Tip reporting and tip credits
Employees must report cash and card tips to the employer, the employer withholds payroll taxes on reported tips, and large food and beverage establishments file Form 8027 annually. Where the restaurant takes a tip credit against minimum wage under the FLSA, the wage records must show that tips brought each employee to the full minimum. We reconcile POS tips to payroll and keep the workpapers; your payroll provider and CPA handle filings.
Sales tax and local meal taxes
Restaurant sales are taxable in most US states, many cities and counties add a meal or hospitality tax, and rules differ for catering, delivery, alcohol and service charges. We reconcile tax collected in the POS to the ledger by jurisdiction each month, prepare the workings for your filing, and flag rate changes or new locations so nothing is missed.
Daily cash and deposit controls
Cash-heavy service creates the need for a daily cash count, a deposit log and a documented over-and-short account. We reconcile the counted cash per shift to the POS cash tender, match deposits to the log, and report over-and-short by location and manager so problems surface within days rather than at year-end.
Alcohol, franchise and lease reporting
Liquor license reporting, franchisor royalty and marketing-fund reports based on gross sales, and percentage-rent clauses in leases all depend on POS sales figures that tie to the ledger. We prepare the sales schedules these reports need from reconciled numbers and keep the supporting Z-reports on file.
Restaurants software we work in
- Square
- QuickBooks Online
- Xero
- Gusto
- Bill.com
- Toast
- Restaurant365
- MarginEdge
- 7shifts
- All 50 platforms
More for restaurants and hospitality businesses
Other services for restaurants
Bank reconciliation in other industries
Frequently asked questions
Why is Monday's deposit so much bigger than Monday's sales?
Because card processors settle in batches on business days, so Friday, Saturday and Sunday card sales often arrive together on Monday or Tuesday, net of fees. The Z-report shows each day separately. Clearing each day's card tender into a clearing account and matching the combined batch against it keeps daily sales accurate and shows the fee on its own line.
How do you handle cash over and short?
The cash tender on each shift's Z-report is compared with the counted cash on the deposit log, and the difference is posted to an over-and-short account by location and shift. Small, random differences are normal; consistent shortages on one shift or one manager are reported to the owner within the week. The deposit itself is then matched to the bank.
What if the gift-card program settles separately?
Third-party gift-card platforms sell cards online and settle the proceeds to your bank on their own schedule, less a fee, while redemptions run through the POS as a tender. We record sales through the platform as a gift-card liability, match the settlement net of fees, and reduce the liability as cards are redeemed in the POS, so the outstanding balance is always known.
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