--- title: "Month-end close for restaurants & hospitality" description: "Month-end close for restaurants & hospitality: outsourced month-end close: checklist-driven accruals, prepaids, depreciation, reconciliations and a." url: https://ledgerbpo.com/industries/restaurants/month-end-close/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Month-end close for restaurants & hospitality A reliable month end close for restaurants & hospitality means sales tie to deposits, food and beverage cost reflects an inventory count, not just purchases, labor includes unpaid days worked, and tips, sales tax and gift cards are stated correctly as liabilities. Our CloseTrack checklist runs a sales cut-off from the POS on the last day of the period, books the ending inventory count by category, accrues payroll and tips for unpaid days, accrues rent and utilities, spreads annual costs such as licenses and insurance evenly, and reconciles every balance-sheet account. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## 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](https://ledgerbpo.com/software/square/) - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - Toast - Restaurant365 - MarginEdge - 7shifts - [All 50 platforms](https://ledgerbpo.com/software/) ## More for restaurants and hospitality businesses Other services for restaurants - [Bookkeeping](https://ledgerbpo.com/industries/restaurants/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/restaurants/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/restaurants/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/restaurants/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/restaurants/bank-reconciliation/) - [Financial reporting](https://ledgerbpo.com/industries/restaurants/financial-reporting/) - [All restaurants services](https://ledgerbpo.com/industries/restaurants/) Month-end close in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/month-end-close/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/month-end-close/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/month-end-close/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/month-end-close/) - [The full month-end close page](https://ledgerbpo.com/services/month-end-close/) ## 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. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/restaurants/month-end-close/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt