Top 100 Questions Restaurant Owners Should Ask an Accountant

As a restaurant owner, you’ve got a lot on your plate—to say the least. From the moment you decide to open a restaurant of any kind, it’s common to feel like you’re being pulled in a thousand directions.

And the truth is, many of the things vying for your attention never really go away.

For example, finances and accounting are always going to be critical to your daily operations. We know because as experienced, attentive CPAs, we’ve helped many restaurant owners just like you finally get on top of their finances.

Plus, one recent survey found that 52% of independent restaurant owners couldn’t pay rent in December. How you choose to handle your accounting can make or break your livelihood.

That’s why we put together this list of our top 100 questions restaurant owners should ask an accountant when deciding to work together. The answers you get to these questions will be a clear indicator as to whether that accountant is a good fit. Keep reading for our 100 questions and tips on how to gauge the answers you hear.

Questions to Ask an Accountant Before Opening Your Restaurant

Hiring an accountant before you open a restaurant can be a very smart move. Taking this step guarantees you’ll have crucial details like financing needs, expenses, and cash flow sorted out early—which means you can focus on actually opening your restaurant.

With that in mind, let’s look at the first 10 of our top 100 questions restaurant owners should ask an accountant. In their answers, look for concise, actionable information backed up by financial facts and data.

1. How should I structure my restaurant’s financial accounts to track income and revenue efficiently?
2. What are expected startup costs, and how can I budget for them effectively?
3. What types of income should I anticipate before opening, and how should I record it?
4. How can I ensure that I’ve accounted for all potential ongoing expenses?
5. What inventory control systems or methods should I consider implementing from the start?
6. How can I optimize initial inventory purchases to minimize waste and maximize profits?
7. What tax implications should I be aware of, both on a federal and local level?
8. Are there any specific compliance requirements for restaurant businesses that I need to address?
9. How should I handle refunds, discounts, and customer loyalty programs in accounting for revenue?
10. Do you work with cloud-based apps or software so I can access my records anytime?

Questions to Ask an Accountant After Opening Your Restaurant

Is your restaurant already open and operating without an accountant? It’s never too late to start working with one and reaping the benefits.

But as the owner of a busy restaurant, you know just how many hats you have to wear at any given moment. One of the potential cons of being a restaurant owner is perpetually managing quite a few responsibilities.

So, we’ve split the remaining top 100 questions restaurant owners should ask an accountant into specific topics and challenges. Let’s dive in!

Income and Revenue

11. How should I record daily sales transactions and account for various payment methods?
12. What strategies can help increase revenue without compromising tax compliance?
13. How should I account for gift cards and loyalty program revenue?
14. Are there specific accounting methods for handling catering or event bookings revenue?
15. What considerations should I have regarding revenue recognition in restaurant accounting?
16. How do I account for income from online delivery platforms and third-party services?
17. Are there tax implications related to restaurant promotions, discounts, or special offers?
18. Can you provide guidance on revenue recognition for subscription-based dining memberships or services?
19. Are there tax implications for selling merchandise or branded products in my restaurant?

Expenses and Costs

20. How can I effectively categorize and track my restaurant’s operating expenses?
21. Are there opportunities to reduce costs without sacrificing quality?
22. What strategies can I use to manage and control food and beverage costs effectively?
23. How should I account for payroll and labor costs, including overtime and tips?
24. Are there opportunities for tax deductions related to employee benefits and incentives?
25. How can I allocate and track overhead costs accurately in restaurant accounting?
26. What are the tax implications of restaurant renovations, equipment purchases, or leasehold improvements?
27. Are there tax deductions available for charitable contributions or community involvement?
28. How should I address vendor and supplier negotiations to optimize cost savings?

Inventory Management

29. What ongoing inventory management practices should I implement to control costs and minimize waste?
30. How often should I conduct inventory audits and adjust my records accordingly?
31. How can I implement an efficient system for tracking inventory turnover rates?
32. What methods should I use to value my inventory, and how does it impact my financial statements?
33. Are there specific tax rules related to the valuation and depreciation of restaurant assets?
34. How can I address supplier payments and negotiate favorable terms for inventory purchases?
35. Are there tax considerations when disposing of expired or spoiled inventory?
36. How do I handle the accounting for perishable and non-perishable inventory items differently?
37. What inventory control methods can help prevent theft and shrinkage in my restaurant?

Taxation and Compliance

38. What tax deductions or credits are available for restaurant businesses, and how can I maximize them?
39. How can I ensure compliance with tax laws related to employee wages and tips?
40. What are the tax responsibilities related to restaurant employee tips and tip reporting?
41. How should I handle sales tax, use tax, and other tax obligations for my restaurant?
42. What documentation and record-keeping practices are crucial for tax compliance?
43. How can I optimize tax strategies for long-term growth and profitability?
44. Are there opportunities for tax credits or incentives specific to the restaurant industry?
45. How do I navigate the tax implications of owning multiple restaurant locations or franchises?
46. What strategies can I use to minimize the impact of audits or tax disputes?

Financial Reporting

47. What financial statements should I regularly generate for my restaurant’s financial health?
48. How can I use financial reports to identify areas for improvement in my restaurant’s operations?
49. How do I prepare and interpret an income statement (profit and loss statement) for my restaurant?
50. What key performance indicators (KPIs) should I focus on in financial reporting?
51. How can I use financial reports to benchmark my restaurant’s performance against industry standards?
52. What should be included in a comprehensive restaurant balance sheet?
53. How do I account for accruals and prepayments in financial statements?
54. How can I prepare for financial due diligence if I plan to sell my restaurant in the future?
55. How should I account for leases, including both real estate and equipment leases?

Cash Flow Management

56. What strategies can I use to manage cash flow effectively, especially during seasonal fluctuations?
57. How should I handle credit card payments and associate processing fees?
58. What strategies can I employ to improve cash flow and manage working capital effectively?
59. How can I create a contingency plan for unexpected financial challenges or emergencies?
60. Are there financing options or lines of credit that can support cash flow needs?
61. What is the impact of cash flow management on my restaurant’s ability to pay bills and suppliers on time?
62. How do I create financial reports that provide insights into restaurant profitability by location or segment?
63. Are there financing options available to restaurants to bridge cash flow gaps during slow periods?
64. How can I forecast cash flow accurately to ensure adequate working capital?

Budgeting and Forecasting

65. How often should I revisit and adjust my restaurant’s budget and financial forecasts?
66. What tools or software can aid in budgeting and forecasting for my restaurant?
67. How can I create a comprehensive budget that considers all aspects of my restaurant’s operation?
68. What factors should I consider when forecasting sales and expenses for different seasons?
69. How do I adjust my budget and forecasts in response to changing market conditions?
70. What financial metrics should I use to evaluate the accuracy of my forecasts?
71. How can I incorporate a capital expenditure plan into my budget to account for renovations or equipment upgrades?
72. What strategies should I use to monitor and manage variable costs, like food and labor expenses?
73. What type of contingency plan should I include in my budget to address unpredictable challenges, such as supply chain issues?

Compliance and Regulation

74. What are the ongoing regulatory compliance requirements for my restaurant, and how can I stay updated?
75. How should I address labor laws, health standards, and other regulations to avoid penalties?
76. How can I ensure that my restaurant complies with labor laws, including minimum wage and overtime regulations?
77. What health and safety standards must my restaurant adhere to, and how should I document compliance?
78. Are there environmental regulations or permits that apply to restaurant operations?
79. How can I stay informed about changing tax laws and compliance requirements?
80. In the event of a tax audit, which records and documentation should I have readily available?
81. What steps can I take to stay compliant with payroll tax regulations, especially tip reporting?
82. How can I ensure proper record-keeping to ensure smooth compliance checks and audits?

Technology and Accounting Software

83. What accounting software or POS systems are best suited for my restaurant’s needs?
84. How can your recommended accounting software streamline financial processes for my restaurant?
85. What are the benefits and drawbacks of different accounting software options for my restaurant?
86. How can I integrate my point-of-sale (POS) system with accounting software for streamlined record-keeping?
87. What cybersecurity measures should I implement to protect financial data and customer information?
88. Are there automation tools that can simplify routine accounting tasks?
89. How can I ensure data security and privacy when using digital accounting tools?
90. What role can data analytics play in giving me insights into customer behavior and preferences?
91. How often should I update my accounting software to stay up-to-date on new features and security measures?

Financial Analysis and Decision-Making

92. How can I use financial analysis to identify trends in customer spending habits so I can tailor promotions and loyalty programs?
93. What financial metrics should I regularly monitor to gauge my restaurant’s performance?
94. How can I analyze the profitability of each menu item and make pricing decisions accordingly?
95. What financial ratios can help me assess my restaurant’s financial health and performance?
96. How do I evaluate the return on investment (ROI) for marketing and advertising campaigns?
97. What financial considerations should I weigh when expanding my restaurant or opening new locations?
98. What strategies can you recommend for managing accounts receivable and improving cash flow?
99. How can I effectively manage my working capital to ensure my restaurant is financially stable?
100. What key performance indicators (KPIs) can I use to assess the profitability of specific menu items and make data-driven decisions?

Hiring an Experienced Accountant Can Make All the Difference for Your Restaurant

Ultimately, the “right” answers to these questions will depend somewhat on your specific restaurant’s needs. But across the board, an experienced restaurant CPA will give you clear, up-to-date, and actionable information.

You also want an accountant who utilizes modern technology. Cloud software is the most advanced, customizable, and accessible option when it comes to accounting software. Here at CloudCPA, that’s exactly what we specialize in.

Interested in asking us any of these top 100 questions restaurant owners should ask an accountant? With over 14 years of CPA experience, we’d love to discuss your restaurant’s accounting needs and how we can help! Just click here to book a call to get started.