Navigating New Horizons: Our First Steps into Restaurant Accounting

We are excited to announce that we have the opportunity to work with a potential client who operates two distinct restaurant entities. As this is our initial venture into the restaurant sector, we are seeking guidance on how to effectively set up our services and appropriately price them. Our goal is to ensure a solid foundation for this new partnership, which we hope to expand over time.

Overview of the Client’s Business

Our client operates two restaurants, each registered as separate legal entities. We plan to kick off our collaboration with one restaurant and create a single QuickBooks Online (QBO) file as a pilot project. Here are some details we’ve gathered about their operations:

• Accounts Overview: The client has one checking account established in mid-April 2025, along with at least one credit card. Previous accounts have been closed, which means we’ll only have access to PDF statements for those.
• Catch-Up Work: We will need to complete a full catch-up for the entirety of 2025.
• Purchasing Practices: It’s common for them to make supply purchases for both restaurants on one receipt, often splitting costs around a 25/75 ratio.
• Record Keeping: Receipts are frequently discarded, and there are currently no systems in place for scanning or storing these documents.
• Bill Payment: Their bill payment process is informal and requires enhancement.
• Software Preferences: They are open to implementing QuickBooks Online and expect us to manage the setup process.
• Meetings: They anticipate having in-person meetings, potentially twice a month.

As we operate on a fixed fee structure based on transaction volume across all accounts, we are pondering the most suitable pricing for our service.

Seeking Guidance on Restaurant Accounting Best Practices

We would greatly appreciate insights and suggestions regarding the following considerations:

1. Separate Entities Management: Given that both restaurants are organized as separate LLCs, we assume that creating individual QBO company files for each is advisable. Is this the correct approach?

2. Chart of Accounts Configuration: What are the best practices for structuring a chart of accounts tailored for restaurant businesses? Are there specific key accounts that we should integrate?

3. Point of Sale (POS) System Integration:

4. Would it be more efficient to connect their POS system directly to QBO, or should we utilize manual sales journal entries?
5. We are currently