How it runs for restaurants and hospitality businesses
Our ReconBot workflow works from the processor, platform and POS reports rather than the bank feed, posts fees and commissions separately, moves platform adjustments to the orders they affect, and clears unapplied cash within two business days.
What is cash application?
Cash application means matching money received from customers to the invoices it pays and recording that in the accounting system. It covers bank receipts, checks, lockbox files, card payouts and remittance advices, including partial payments, deductions and payments with no reference. Done well, the aging is accurate and no customer is chased for an invoice they already paid.
What we handle for restaurants and hospitality businesses
- Apply card batches to the Z-report days they settle through the tender clearing account
- Apply cash deposits to shifts from the deposit log and post over-and-short
- Apply delivery-platform payouts order by order with refunds and promotions posted separately
- Apply event deposits, house-account and wholesale receipts to the correct invoice
- Clear unapplied and unidentified receipts within two business days
The KPI that matters here
All tenders and customer receipts applied within two business days of deposit, with unapplied cash below one percent of monthly receipts.
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
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Frequently asked questions
Why apply card payouts to days rather than just booking the deposit?
Because the deposit combines several days and nets out fees, so booking it directly tells you nothing about which day's sales are still unsettled or whether a batch is missing. Applying each payout to the days it covers through a clearing account leaves an exact list of unsettled sales, which is how a missing batch or a processor hold is caught within days.
How do you apply a delivery-platform payout with refunds and promotions?
The platform statement lists each order at gross, then commission, promotion cost, customer refunds and order-error charges. We post the gross to delivery sales, each deduction to its own line, and match the net to the deposit. Refunds and error charges are tied to the original order so disputes can be raised with the platform inside its window.
How are wholesale and house-account payments applied?
A check or ACH payment is applied to the invoices it references on the remittance, or to the oldest open invoices when no remittance is provided, following the rule you set. Short payments are recorded with a reason, for example a credit for returned product, and the customer's next statement shows the application so the same balance is not chased twice.
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