POS to tender, daily
Match the POS day-end report with cash counted and card and UPI batches. Investigate cancelled and discounted bills, as these are common places for leakage.
Industry
Accounting for restaurants, one day's sales at a time
A restaurant has many small sales, perishable stock, staff on shifts and platforms that pay weeks later, net of deductions. Three reconciliations and one number do most of the work.
Three reconciliations
Platforms to bank, by settlement
Match delivery orders with each payout. Separate commission, ads, penalties and tax so that you can see true income.
Purchases to kitchen, weekly
Check vendor bills against goods received and rates agreed. Many restaurants buy daily and record monthly, so errors build up.
The one number: food cost
Food cost % = (Opening stock + Purchases − Closing stock) ÷ Food sales × 100
This needs a real closing stock count. Without one, you are only measuring purchases. Check it monthly, and investigate any jump before blaming suppliers: consider wastage, staff meals, portion size, theft or missing bills.
Benchmarks vary by concept, so track your own trend first.
GST points to confirm
From the CGST rate notifications, as they stood in November 2026:
- Restaurant service is taxed at 5% without input tax credit
- A restaurant in "specified premises" is taxed at 18% with credit. Since 1 April 2025, that means premises that supplied hotel accommodation above ₹7,500 per unit per day in the previous financial year, or that opted in by declaration
- On food ordered through a delivery platform, the platform pays the GST under section 9(5), not the restaurant
- Those orders therefore need to be reported separately from dine-in and takeaway sales in your GST returns
What to hand Deepak Mittal each month
- POS monthly summary, with discounts, cancellations and tender types
- Delivery platform statements and fee invoices
- Vendor bills and payment details, including cash purchases with vouchers
- Closing stock count of main items
- Staff attendance, wages and advances
- Rent, electricity, gas and repairs
- Any licences or renewal fees paid, such as FSSAI
Where restaurants' books go wrong
- Cash purchases with no bill. Vegetables and small items are often bought in cash. Use a simple voucher, and pay by traceable means where you can.
- Booking platform payouts as sales. This understates turnover and hides fees.
- Staff meals and wastage ignored, so that food cost looks unexplained.
- Tips and service charges unclear. Decide how they are handled, and record it.
- Payroll in cash, without records. It is hard to defend later. See payroll.
Questions to ask Deepak Mittal before work starts
- Have you worked with restaurants on my POS and delivery platforms?
- How do you report dine-in and delivery sales separately for GST?
- Will you give me monthly food cost and labour cost?
- How do you handle my cash purchases?
Sources checked, November 2026
- Busy on GST on restaurant meals (opens in a new tab), Petpooja on GST billing (opens in a new tab), update effective April 2025 (opens in a new tab) (secondary)
- Notification 20/2019-Central Tax (Rate) (opens in a new tab), Notification 05/2025-Central Tax (Rate) (opens in a new tab) and Circular 167/23/2021-GST (opens in a new tab) (read at source, 10 November 2026). The September 2025 rate changes did not alter restaurant service
Run a restaurant or cloud kitchen?
Tell us your POS, the delivery platforms you use, your staff count, and whether you count kitchen stock today.
