How it runs for restaurants and hospitality businesses
A team lead reviews under Two-Tier Review before the package goes out by the fifth business day.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for restaurants and hospitality businesses
- Cut off POS sales on the last day of the period and post the final Z-reports
- Book ending inventory by category so cost of goods reflects what was used, not bought
- Accrue payroll and tips for days worked after the last pay period
- Reconcile tip, sales tax, gift-card and event-deposit liabilities to source reports
- Close each period under maker-checker review with a signed log
The KPI that matters here
Close released by the fifth business day with sales tied to deposits and prime cost reported by location.
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
Frequently asked questions
Why does the inventory count matter for the close?
Because purchases in a period are not the same as food used. A stock-up before a holiday weekend inflates purchases in one period and deflates them in the next, so food cost swings for no operational reason. Counting ending inventory by category and booking the change converts purchases into cost of goods sold, and food cost as a percent of sales becomes comparable period to period.
Can you close on four-week periods instead of calendar months?
Yes. Many operators use thirteen four-week periods so every period has the same number of Fridays and Saturdays, which makes sales and labor comparable. We set the close calendar to your periods, cut off POS sales and payroll on the period end date, and produce period P&Ls with the same reconciliations and review a calendar-month close would receive.
What does the close package contain for a restaurant group?
A P&L by location and consolidated, with sales by category, cost of goods by category, labor by department and prime cost; a balance sheet with every account reconciled; a liabilities schedule for tips, sales tax, gift cards and event deposits; a delivery-platform summary; over-and-short by location; and a short note on what moved. The CloseTrack log shows who prepared and reviewed each step.
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