Creating an accurate Roni’s Mac Bar P&L

Please share with your bookkeeper and perform this on a monthly basis

Many programs (such as quickbooks) are great at showing the # of dollars brought in and out of your account for basic categories. Unfortunately, these programs are typically not capable of tracking transactions that happened outside of what hit your bank account, leading to a false representation of your performance (For example Tips and Taxes counting towards “Sales”). 

Having an accurate P&L not only will help with IRS reporting and audits, and GM Bonuses, but may also help you get better terms on future loans. Below are a few of the most common things that can help your P&L be its best!

Accounting for 3rd Party Delivery Fees

You might make $100 of sales to Doordash, but they withhold their fees from the payouts, only depositing $80 for example. This shows a lower sales amount, resulting in higher inaccurate perceived cost %’s (like food cost or labor)

1. Get the actual fees affecting that month
   1. In Toast go to Reports > Sales > Sales Summary > Select the month in question
   2. Scroll down to “DINING OPTION SUMMARY”
   3. Make note of the $ amounts for each 3rd party delivery service
   4. In your bookkeeping software, total up the deposits received by each delivery service separately, and subtract the amount found in the previous step
      1. This is the amount the companies charged for their services
      2. You may just keep them as one big total, separation is up to you
2. Account for the fees
   1. Make a “Journal Entry” to account for this (Instructions for Quickbooks below)
      1. Click the “+ New” Button on the top left and select “Journal Entry”
      2. Change date to last day of the month that the numbers were taken from
      3. On line 1, change “Account” to “3rd Party Delivery Fees” or whatever account you’d like to track this in. You may need to make this account. 
      4. In “Description” put the name of the service (example “Doordash Delivery Fees”
      5. In “Debits” put the amount found in step 1 for that service
      6. On Line 2, change “Account” to “Sales” or whichever account you track sales in
      7. Put the same description as Line 1
      8. In “Credits” put the amount found in Step 1
      9. Repeat steps iii – viii for the remaining delivery services (they can all be a part of the same “Journal Entry”)

Accounting for Credit Card Fees

Your deposits from your POS come in after the credit card companies have taken their share. Here’s how to correct this.

1. In Toast go to Reports > Payments > Credit Card Statements and choose the statement at the end of the month you are looking at
2. Note the total number found at the top under “Fees”
3. Make a “Journal Entry” to account for this (Instructions for Quickbooks below)
   1. Click the “+ New” Button on the top left and select “Journal Entry”
   2. Change date to last day of the month that the numbers were taken from
   3. On line 1, change “Account” to “Credit Card Fees” or whatever account you’d like to track this in. You may need to make this account. 
   4. In “Description” put “CC Fees”
   5. In “Debits” put the amount found in Step 2
   6. On Line 2, change “Account” to “Sales” or whichever account you track sales in
   7. Put the same description as Line 1
   8. In “Credits” put the amount found in Step 2

Accounting for Toast/POS Loans

If you have taken a loan from your POS company, it may have terms that deduct a loan repayment amount daily from your normal payouts. For example, you may make $100 in sales, but only receive $90. For the record, Roni’s Mac Bar advises against these loans, especially in larger amounts/longer payback periods, due to the severe reduction of cash flow they can cause. 

1. Follow the previous steps for finding the “Credit Card Fees”
2. There may be a column beside “Fees” called “Other Withholding” or something similar. Note this amount.
3. Make a “Journal Entry” to account for this (Instructions for Quickbooks below)
   1. Click the “+ New” Button on the top left and select “Journal Entry”
   2. Change date to last day of the month that the numbers were taken from
   3. On line 1, change “Account” to “POS Loan” or whatever account you’d like to track this in. You may need to make this account. 
   4. In “Description” put “POS Loan”
   5. In “Debits” put the amount found in Step 2
   6. On Line 2, change “Account” to “Sales” or whichever account you track sales in
   7. Put the same description as Line 1
   8. In “Credits” put the amount found in Step 2

Accounting for Sales Tax and Employee Tips

In the case of Tips and Taxes, you are simply “holding” these funds for other people (the government/your employees). Therefore, these deposits to your account should not be counted as sales. 

1. In Toast go to Reports > Sales > Sales Summary > Select the month in question
2. Note the amounts in both “Tax Amount” and “Tips”
3. Make a “Journal Entry” to account for these (Instructions for Quickbooks below)
   1. Click the “+ New” Button on the top left and select “Journal Entry”
   2. Change date to last day of the month that the numbers were taken from
   3. On line 1, change “Account” to “Sales Tax Payable” or whatever account you’d like to track this in. You may need to make this account. 
   4. In “Description” put “Sales Tax Payable for (month)”
   5. In “Debits” put the amount of Sales Tax found in Step 2
   6. On Line 2, change “Account” to “Sales” or whichever account you track sales in
   7. Put the same description as Line 1
   8. In “Credits” put the Sales Tax amount found in Step 2
   9. Repeat the above steps for Tips

Tracking a GM salary as a line item

When GM’s are on salary, many companies prefer to track them as a fixed line item, to help keep hourly labor separate and get a truer sense of efficiency from your operation. Many GM bonuses look at hourly labor only. 

1. Make a “Journal Entry” to account for this (Instructions for Quickbooks below)

1. Click the “+ New” Button on the top left and select “Journal Entry”
2. Change date to last day of the month that the numbers were taken from
3. On line 1, change “Account” to “General Manager” or whatever account you’d like to track this in. You may need to make this account.
   1. This account is typically a sub-account of the main Wages account 
4. In “Description” put “GM Payroll for (month)”
5. In “Debits” put the amount that was paid to the GM
6. On Line 2, change “Account” to “Wages” or whichever account you track wages
7. Put the same description as Line 1
8. In “Credits” put the amount paid to the GM