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Restaurant Bookkeeping and Accounting


Schultz & Associates, CPA, Tax Preparer




Restaurant Bookkeeping and Accounting -While you focus on food


WaiterWe have helped various Restaurants throughout Metropolitan Detroit and the rest of Michigan with accounting, bookkeeping, payroll , tax preparation, tip-income, server wages, social security tips, planning and advisory. accounting and taxes.  We have advised and consulted on various tax compliance and tax planning questions.





Restaurant Tax Support and Advisory


Whether you are an individual, self-employed small business, C or S Corporation, PLC, or Partnership, our experience allows us to development tax strategies that take advantage of new tax laws and legislation. We keep our clients informed of changes and make sure that you the client understand the changes and implications it has on their restaurant.




Restaurant, and Tax Support Services


  • Restaurant accounting
  • Tax return preparation
  • Tax planning
  • Social Security Tips
  • Tax advantage strategies for Restaurants
  • Individual income tax return preparation and planning
  • Payroll tax preparation
  • Payroll processing (through our affiliate)
  • Retirement planning advisory
  • Estate planning issues

Restaurant Locations Currently Served


  • Ann Arbor
  • Canton
  • Detroit
  • Ferndale
  • Garden City
  • Livonia
  • Pleasant Ridge
  • Plymouth
  • Royal Oak
  • Southfield
  • Westland

Tips and Taxes

Restaurant bookkeeping ServicesEmployee’s should report their daily tips to their employer using Form 4070A. The report should be provided to management 10 days after the month end. This form is not necessary if tips are under $20 during a month.

Employer’s are required to collect tax, and employee social security and medicare tax on tips reported by employee’s.

Automatic tips are subject to income tax withholding for federal income tax purposes. The IRS deems them as a service charge rather than a tip. Cork charges are given the same consideration.

Generally all restaurants located in the US  where tipping is customary and staff at least 10 employees are required to file  IRS Form 8027 annually.

More often in today’s environment patrons are using credit cards to pay their tips.  This can be a problem if your reimburse your wait staff 100% at the end of a shift.  Wait staff working a 4 hour shift can make in excess of $300 in tips. and the minimum wage puts their pay for that night at less than $20.  Your employees will be short on taxes and unhappy with you.  A good rule of thumb would be to hold back 30%.  If the 30% ends up being too much they staff person with see the remainder in their net check.  Try and make this a restaurant policy. Avoid have different percentages for different staff.




7 Restaurant Tips from a Financial Angle

Chef image for Schultz Restaurant accounting1. UNDER CAPITALIZED – This is all in bold. And this is the biggest reason restaurants fail (other than bad food and service). Too often restaurants have the capital to get the doors open and not much else.  If there is not an 8 to 12 month capital reserve then you could run into problems.

2. Don’t Line up Prices on the Menu – Restaurant patrons should be purchasing entrees based on what sound good.  Lining up the prices of each entree will encourage patrons to dine with their pocket book.

3. Banks and Restaurants Don’t Mix – Banks do not like to loan money to restaurants. It does not matter why they do not like restaurant lending.  Just know that they don’t. You will likely have to find investors to finance your idea.

4. Say Goodbye to your Social Life –  Restauranteurs work as hard as any entrepreneur out there.  They work late hours and dreaded weekends. Be prepared.

Restaurant bookkeeping5. Payroll – Avoid processing your own payroll.  With tips and high turnover you with spend hours going over payroll which takes away from the more important issues facing your business. A payroll service is money well spent.

6. Affordable Care Act – Be sure you know the requirement of the Affordable Care Act. Restaurants often carry large staff and unknowing become subject to laws covered under the ACA.

7. Tips and Minimum Wage – Though the minimum wage for wait staff is lower than minimum wage for other employee, wait staff still must be paid minimum wage.  If the tip wage plus the tips is less than minimum wage then the restaurant must compensate that person the difference.






Articles and Stories Relating to Restaurant Bookkeeping

Opening Checklist for a Restaurant – Chron

How to Open a New Business with Bookkeeping – Chron

Basic Restaurant Accounting – Food Service Wharehouse




Plymouth Michigan


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