ACCOUNTING FOR RESTAURANT BUSINESSES

ACCOUNTING FOR RESTAURANT BUSINESSES – EFFECTIVE CONTROL OF COSTING, INVENTORY, AND CASH FLOW

 

Restaurant businesses operate in an environment characterized by highly volatile costs, complex production processes, and the need for tight control across every stage of operations. Without an accounting system tailored to the specific nature of the restaurant and F&B industry, businesses are highly exposed to incorrect menu costing, inventory losses, difficulties in controlling labor costs, and tax risks.

FAMA Consulting provides accounting services and accounting system setup for restaurant businesses, helping management teams effectively control operations, optimize costs, and ensure compliance with applicable regulations.

 

ACCOUNTING CHARACTERISTICS OF RESTAURANT BUSINESSES

1. Complex food preparation processes – challenging menu costing

Restaurant businesses typically have:

• A wide variety of menu items
• Multi-stage food preparation processes
• Diverse raw materials with difficult-to-control usage standards

Accurately calculating the cost of each menu item and determining appropriate pricing is a major challenge that directly affects profitability and competitiveness.

2. High pressure in inventory management

Restaurants must manage:

• Fresh ingredients
• Short shelf lives
• Complex supply chains and storage systems (especially for restaurant chains)

Without an effective inventory tracking system, businesses can easily face shortages or excess stock, leading to waste and losses.

3. Suppliers lacking valid supporting documents

Some high-quality food suppliers do not issue valid invoices, creating difficulties in:

• Cost recognition
• Cost control
• Tax finalization

This requires accountants to apply appropriate and compliant solutions.

4. Complex asset control

Restaurant businesses often operate:

• Multiple branches
• Multiple business locations

Managing assets and tools becomes complicated without a clear accounting system and well-defined procedures.

5. Large workforce – high payroll costs

Labor costs represent a significant portion of restaurant expenses. Payroll calculation involving:

• Shift scheduling
• Overtime payments

Must comply strictly with labor laws, otherwise businesses may face tax and social insurance risks.

👉 Therefore, building an accounting system tailored to restaurant businesses is the key to managing service quality, maintaining competitive pricing, and operating in full legal compliance.

 

BENEFITS & RESULTS OF USING ACCOUNTING SYSTEM SETUP SERVICES FOR RESTAURANTS AT FAMA

When using restaurant accounting and accounting system setup services at FAMA Consulting, businesses will receive:

✔️ Accurate menu costing

• Application of the most appropriate costing methods for each menu item
• Enables the Board of Directors (BOD) to clearly understand cost of sales and avoid mispricing

✔️ Business results reflecting economic substance

• Application of the accrual basis and cost–revenue allocation techniques
• Ensures profits and losses accurately reflect operations across multiple periods

✔️ Legally compliant payroll and compensation advisory

• Development of payroll structures compliant with labor laws
• Minimizes tax, insurance, and labor dispute risks

✔️ A structured accounting system for cost control

• Design of detailed charts of accounts, master data, and reporting systems
• A solid foundation for preparing financial statements in compliance with Vietnam Accounting Standards
• At the same time, supports management accounting reports for cost and revenue control

✔️ Cash flow and receivables/payables control

• Reports to monitor cash flow, accounts receivable, and accounts payable
• Enables cash flow forecasting and balancing to ensure continuous operations

✔️ Clear accounting processes – reduced reliance on individuals

• Establishment of standardized accounting procedures to ensure smooth system operations
• Reduces dependency risks on individual staff members

✔️ Accounting software & tax advisory solutions

• Advice on accounting software suitable for restaurant business models
• Delivery of accurate, timely accounting and tax solutions compliant with current regulations
• Minimizes tax and financial risks

 

FAMA CONSULTING – A SPECIALIZED ACCOUNTING PARTNER FOR RESTAURANT BUSINESSES

With extensive experience in providing accounting services for restaurants, F&B chains, eateries, and cafés, FAMA Consulting goes beyond traditional accounting to help businesses build effective, transparent, and sustainable financial and accounting management systems.

👉 FAMA Consulting – Specialized accounting solutions for restaurant businesses, enabling cost control, increased profitability, and long-term growth.