What’s a Restaurant Chart of Accounts (COA) ?
A chart of accounts (COA) is the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.
Suggest have at least 7 categories in your restaurant chart of accounts ;
Assets (1000 – 1999)
Liabilities (2000 – 2999)
Equity (3000 – 3999)
Income or Revenue (4000 – 4999)
Cost of Goods Sold : “COGS” (5000 – 5999)
Expenses (6000 – 7999)
Other Income (8000 – 8999)
What is Cost of Goods Sold (COGS)?
COGS is the total cost involved in the production and delivery of a product. For a restaurant, it is the summation of all it costs to make and deliver your food.
From purchasing raw food materials to all the cooking and post-cooking expenses, you need to know the exact cost of producing a menu item. Your gross income less all these expenses gives you your net profit.
COGS is determined with the following equation:
COGS = (Opening Inventory + Purchased Inventory + Other direct expenses) – Closing Inventory.
- Opening inventory: This is the monetary value of the inventory you have leftover from the previous period (day, week, month or year).
- Purchased inventory: This is the monetary value of the inventory purchases you make for the upcoming time period.
- Other direct expenses: such as cooking gas, direct labor, etc.
- Closing inventory: Once you get to the end of your time period, you calculate the monetary value of the inventory you have leftover.
Restaurant Sample Chart of Accounts.
|Account Number||Account||Account Type|
|1000||Cash On Hand||Current Asset|
|1010||Checking Account||Current Asset|
|1020||Savings Account||Current Asset|
|1100||Accounts Receivable||Current Asset|
|1200||Inventory: Wine||Current Asset|
|1210||Inventory: Beer||Current Asset|
|1220||Inventory: Non-Alcoholic||Current Asset|
|1230||Inventory: Food||Current Asset|
|1300||Prepaid Expenses||Current Asset|
|1400||Fixed Asset Tech (Computers, POS systems)||Fixed Asset|
|1410||Fixed Asset Furniture & Equipment||Fixed Asset|
|1500||Security Deposits||Noncurrent asset|
|2000||Accounts Payable (A/P)||Liability|
|2110||Credit Card 1||Liability|
|2120||Credit Card 2||Liability|
|2210||Payroll Clearing Account||Liability|
|2300||Outstanding Gift Cards||Liability|
|3010||Capital Contribution: Member 1||Equity|
|3020||Capital Contribution: Member 2||Equity|
|3030||Draw Account: Member 1||Equity|
|3040||Draw Account: Member 2||Equity|
|4110||Food Sales: Breakfast||Revenue|
|4120||Food Sales: Lunch||Revenue|
|4130||Food Sales: Dinner||Revenue|
|4140||Food Sales: Discounts||Revenue|
|4150||Food Sales: Comps||Revenue|
|4210||Beverage Sales: Wine||Revenue|
|4220||Beverage Sales: Beer||Revenue|
|4230||Beverage Sales: Liquor||Revenue|
|4240||Beverage Sales: Non-Alcoholic||Revenue|
|4250||Beverage Sales :Beverage Comps||Revenue|
|4260||Beverage Sales: Beverage Discounts||Revenue|
|4400||Catering & Contracts||Revenue|
|5110||Food Cost: Dairy Cost||COGS|
|5120||Food Cost: Produce||COGS|
|5130||Food Cost: Meat||COGS|
|5140||Food Cost: Seafood||COGS|
|5210||Beverage Cost: Wine||COGS|
|5220||Beverage Cost: Beer||COGS|
|5230||Beverage Cost: Liquor||COGS|
|5240||Beverage Cost: Non-Alcoholic||COGS|
|6100||Operating and Overhead Expenses||Expenses|
|6140||Linen and Linen Services||Expenses|
|6400||Software Subscription Fees||Expenses|
|6500||Communications (Internet, Phone)||Expenses|
|7300||Facilities: Pest Control||Other|