QuickBooks for Restaurants: How to Set It Up for Your Restaurant

In a fast-paced restaurant business, where managing finances is as crucial as delivering a memorable dining experience, having a powerful and reliable accounting tool like QuickBooks is vital. For restaurant owners, understanding how to utilize QuickBooks can make the difference between running a profitable establishment and grappling with financial complexities.

QuickBooks provides various advantages for restaurant businesses when set up correctly. Some of these include:

Comprehensive Reports

Due to the narrow profit margins in the restaurant business, even slight changes can impact the bottom line. QuickBooks lets owners generate detailed profit and loss reports, facilitating informed decision-making.

Bookkeeping Support

QuickBooks offers bookkeeping support that can help review your financials, generate necessary reports, and assist with bank reconciliations. 

Automated Billing and Invoicing

QuickBooks lets you automate manual approval processes through customizable workflow templates, making repetitive tasks like billing and invoicing more efficient.

How Can You Configure QuickBooks for Restaurants?

Here's a step-by-step guide to setting up QuickBooks for your restaurant:

Establishing Company Lists:

1. For new users, click on the Express Start button. Existing users can click on the File menu and select New Company.

2. Input all the necessary details about your business, such as Company Name, Street Address, Phone Number, City, Country, Email Address, Tax ID, Website ID, etc... Click Next.

3. From the Industry Type field, select Help Me Choose and then choose Restaurant, Bar, or Caterer. Click Next

4. Choose the appropriate company type for your restaurant (for example, S-Corporation, Partnership Corporation, etc.). Click Next.

5. Select My Fiscal Year Starts from the drop-down menu and pick the month your fiscal year starts. Click Next.

6. Click Create Company File and then Start Working.

Adding Customers

1. Open QuickBooks Desktop - Launch the QuickBooks Desktop software on your computer.

2. Navigate to the "Customer Center - From the top menu, select "Customers" and then "Customer Center."

3. Create a New Customer- On the Customer Center screen, click "New Customer & Job," then select "New Customer."

4. Enter Customer Information - In the "New Customer" window, enter the necessary information for your customer. This includes details such as name, billing address, contact information, and any other details you wish to track.

5. Save the Customer Information - Click "OK" or "Next" to save the customer information. If you have more customers to add, click "Next," and if you're done, click "OK."

Adding Items (Product/Service)

1. Open the "Item List" - From the top menu, select "Lists" and then "Item List."

2. Create a New Item - On the Item List screen, click the "Item" button at the bottom left of the screen, then select "New."

3. Enter Item Information - In the "New Item" window, select the "Type" of the item from the drop-down menu (this might be "Service" for a service you provide or "Inventory Part" for a product you sell). Enter the item name, description, price/rate, tax code, and other necessary information.

4. Save the Item Information - Click "OK" to save the item information.

Adding Vendors

1. Open the "Vendor Center" - From the top menu, select "Vendors" and then "Vendor Center."

2. Create a New Vendor - Click " New Vendor " on the Vendor Center screen, and click "New Vendor."

3. Enter Vendor Information - In the "New Vendor" window, enter the necessary information for your vendor. This includes details such as name, billing address, contact information, and any other details you wish to track.

4. Save the Vendor Information - Click "OK" to save the vendor information.

Setting Up Class Tracking

1. Turn on Class Tracking - From the top menu, select "Edit" and then "Preferences." Select "Accounting" from the list on the left in the Preferences window, then select the "Company Preferences" tab. Check the "Use class tracking" box and click "OK."

2. Add New Classes - Select "Lists" and "Class List" from the top menu. In the Class List window, click "Class" at the bottom left of the screen, then select "New." Enter a name for the class, then click "OK."

3. Use Class Tracking in Transactions - When you enter a transaction, you'll see a "Class" column where you can assign the appropriate class. This will help you track income and expenses in different categories (such as restaurant locations or departments).

Remember to save your work periodically and back up your data regularly to prevent any loss of information.

Frequently Asked Questions

What is QuickBooks, and how can it benefit restaurants?

QuickBooks is an accounting software developed by Intuit. It helps restaurant owners manage cash flow, track income and expenses, process sales tax efficiently, and collect vital data to make informed business decisions. QuickBooks Online, a cloud-based software version, can benefit restaurants, offering powerful reporting capabilities, customizable invoices, inventory management, and over 650 integrations​.

What are the unique features of QuickBooks for restaurants?

QuickBooks supports various key operations for restaurants, such as credit payment processing (supports all major credit cards), integration with apps like Stripe, Square, Bill.com, and PayPal, and features that allow tracking income and expenses across different locations or classes. This software also provides live bookkeeping support, automated billing, and invoicing, allowing restaurant owners to generate comprehensive reports​.

How can I set up QuickBooks for my restaurant?

Setting up QuickBooks for your restaurant involves several steps. These include creating company lists, adding customers, items (products or services), and vendors, and setting up class tracking. It's important to enter all necessary details accurately and to save your work periodically. Regularly backing up your data is also crucial to prevent any loss of information.

Can QuickBooks integrate with my point-of-sale (POS) system?

Yes, QuickBooks can integrate with various POS systems, which can help streamline your sales process. It can also sync with your bank account to automatically update your financial transactions.