Discover how QuickBooks can help a restaurant succeed ® If you’re a current or aspiring food-service professional, accounting probably wasn’t one of the things that attracted you to the field Yet without proper bookkeeping and financial reporting, it’s very difficult for any restaurant, bar, catering operation, or other hospitality business to succeed • Every chapter offers review problems to help you practice the skills you’ve learned and build critical thinking abilities • Data files on the companion CD-ROM simulate restaurant scenarios and help you hone your QuickBooks expertise and financial management proficiency • A companion Web site provides updated data files and coverage of the latest QuickBooks versions The first and only guide to QuickBooks and accounting fundamentals written specifically for the hospitality industry, QuickBooks for the Restaurant offers solid, step-by-step instruction, restaurant-specific examples, and coverage of industry issues, such as integration with point-of-sale systems With special emphasis on the decision-making skills necessary to become a successful manager in the restaurant industry, QuickBooks for the Restaurant is an invaluable resource for culinary arts students and food service professionals everywhere STEPHANIE MURPHY, CPA, and ALISA R NEUNEKER are both Assistant Professors of Business Management at The Culinary Institute of America in Hyde Park, New York for the Restaurant • Throughout, QuickBooks Tips and Accounting Tips explain how to work smarter, and Industry Interviews offer real-world tricks of the trade đ ã A comprehensive project at the end of the book helps you pull together everything you’ve learned as you analyze data and make business decisions QuickBooks This book shows how you can use QuickBooks, the leading small-business accounting software, to automate financial reporting, control costs, and maximize profits in any food or beverage business Using the operations of a fictional “Aroma Ristorante,” it walks you through QuickBooks features and functions step by step, explains accounting fundamentals, and demonstrates how QuickBooks can help you solve the real-world challenges of running a food service business Murphy • Neuneker Business & Economics / Hospitality QuickBooks ® for the Restaurant Stephanie Murphy A ND Alisa Robertson Neuneker Cover Design: Jeff Faust Cover Photographs: Top, iStockphoto/© Pali Rao Bottom, iStockphoto/© Huchen Lu Includes CD-ROM Includes CD-ROM ffirs.indd ii 12/22/08 2:59:54 PM QuickBooks ® for the Restaurant ffirs.indd i 12/22/08 2:59:54 PM ffirs.indd ii 12/22/08 2:59:54 PM QuickBooks ® for the Restaurant Stephanie Murphy Alisa Robertson Neuneker John Wiley & Sons, Inc ffirs.indd iii 12/22/08 2:59:54 PM This book is printed on acid-free paper ∞ Copyright © 2010 by John Wiley & Sons, Inc All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages The companies and entities depicted in this work are fictitious Any similarity to any past, present, or future company or entity is merely coincidental Designations used by companies to distinguish their products are often claimed as trademarks In all instances where John Wiley & Sons, Inc is aware of a claim, the product names appear in initial capital or all capital letters Readers, however, should contact the appropriate companies for more complete information regarding trademarks and registration For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our Web site at http://www.wiley.com Library of Congress Cataloging-in-Publication Data: Murphy, Stephanie Quickbooks for the restaurant/Stephanie Murphy, Alisa Robertson Neuneker p cm Includes index ISBN 978-0-470-08518-9 (paper/cd) Restaurants—Accounting QuickBooks I Neuneker, Alisa Robertson II Title HF5686.H75M87 2010 657'.8375028553—dc22 2008033317 Printed in the United States of America 10 ffirs.indd iv 12/22/08 2:59:55 PM Contents Preface ix Chapter 1: Introduction About This Book Overview of QuickBooks Software Importance of the Accounting Process to the Restaurant Manager Obtaining QuickBooks Help Aroma Ristorante’s Operating Processes and Activities Chapter 2: Setting Up Your Restaurant in QuickBooks 11 EasyStep Interview—Creating a New Company File 11 Backing Up and Restoring QuickBooks Files 19 Establishing Company Preferences 21 Setting Up an Additional Bank Account 27 Recording Opening Balances 28 Setting Up QuickBooks to Manually Accept Payroll 28 Chapter 3: Working with Lists 45 Using Lists 45 Using the Chart of Accounts 46 Creating and Editing Accounts Deleting Accounts 46 51 Making an Account Inactive 51 Creating a Vendor from the Vendor Center 52 Creating a Customer from the Customer Center Creating an Item 54 57 Editing and Deleting a Vendor, Customer, and Item Identifying the Role of Classes ftoc.indd v 59 59 12/22/08 10:28:22 AM vi Contents Preparing Lists 59 Chapter Review Problems 65 Chapter 4: Restaurant Purchases, Payables, and Inventory 69 The Purchasing Process 70 Working with Purchase Orders Receiving Goods Entering Bills Editing Bills 73 76 78 Voiding and Deleting Bills Memorizing Bills Paying Bills 70 79 80 83 Using Vendor Discounts Using Vendor Credits 85 86 Using the Check Register 89 Creating and Printing Checks 90 Editing, Voiding, and Deleting Checks 92 Inventory Stock Status (Inventory on Hand) and Par Levels Physical Inventory Worksheets 94 Making Inventory Adjustments 96 93 Other Inventory Management Systems 98 Reports 99 Chapter Review Problems 105 Chapter 5: Sales and Receivables 109 Recording Sales and Receivables 109 Point-of-Sale Systems Interfaces 110 Recording Restaurant Sales from a Point-of-Sale System Creating Customer Invoices Editing Customer Invoices 115 117 Voiding and Deleting Customer Invoices Printing Customer Invoices 118 119 Recording Customer Payments ftoc.indd vi 112 120 12/22/08 10:28:23 AM Contents Recording Credit Memos 122 Creating Customer Estimates 124 Recording Advance Deposits 126 Reports vii 129 Chapter Review Problems 134 Chapter 6: Payroll 139 Payroll and the Restaurant Industry QuickBooks Payroll Options 139 140 Creating a New Employee Record Editing an Employee Record 142 146 Creating Employee Paychecks 146 Editing, Voiding, and Deleting Paychecks 151 Releasing Employees and Inactivating Employee Records Outsourcing Payroll Reports 152 154 155 Chapter Review Problems 160 Chapter 7: Adjusting Journal Entries 165 Identifying the Steps of the Accounting Cycle 165 Preparing a Journal 166 Preparing a General Ledger Preparing a Trial Balance 167 168 Recording Adjusting Journal Entries Chapter Review Problems 169 176 Chapter 8: Financial Reporting and Analysis 179 Financial Statements 179 Preparing the Profit & Loss Statement Preparing the Balance Sheet 186 Preparing the Statement of Cash Flows Preparing the Cash Flow Forecast Chapter Review Problems ftoc.indd vii 180 187 189 191 12/22/08 10:28:23 AM viii Contents Chapter 9: Budgeting 193 Preparing an Operating Budget Reports 193 195 Chapter Review Problems 200 Chapter 10: Year-End Procedures and Reporting 203 Payroll Tax Forms 203 Form 941: Employer’s Quarterly Federal Tax Return 204 Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return 204 Form W-2: Wage and Tax Statement and Form W-3 Transmittal of Wage and Tax Statements 209 Form 1099 MISC: Miscellaneous Income and Form 1096: Annual Summary and Transmittal of US Information Return 210 The Closing Process 212 Chapter Review Problems 213 Chapter 11: Other Restaurant Functions 215 Managing Fixed Assets 215 Recording the Stock Issuance 217 Recording the Dividend Distribution Establishing a Petty Cash Fund 219 220 Writing Off Accounts Receivable 221 Recording Gift Certificate (Gift Card) Transactions Recording Sales Tax Payments 224 Preparing the Bank Reconciliation Chapter Review Problems 222 225 226 Chapter 12: Comprehensive Project 227 Comprehensive Project Objectives Option A 228 Option B 228 Reports 227 271 Chapter Review Problems 272 Glossary 275 Index 281 ftoc.indd viii 12/22/08 10:28:23 AM 282 Index Automatically Enter See Memorized transactions Available Credit, options, 123f Available credit, retention, 123 Available Estimates, active estimates (display), 125f Available reports, Report Center (usage), 129 Average collection period, 275 B Back of house applications, Backup file (.QBB), creation, 20–21 definition, 275, 278 off-site location storage, 20 tape storage, 20 usage, 21 Bad Debt expense account, automatic appearance, 221 example, 271 Balance sheet date, selection, 187f definition, 275 owner equity, 212 preparation, 186–187 Balance Sheet Accounts, usage See Budget Balance Sheet Prev Year Comparison, report (availability), 186 Balance Sheet statement, example, 272 Balance Sheet Summary, balance sheet overview, 186 Bank account information, entry, 18 setup, 27–28 Bank reconciliation data entry, 225f information, usage, 271 preparation, 225–226 Banquet items, costs (relationship), 115 Beer inventory, example, 268f Benefits, selections, 39f bindex.indd 282 Beverage operators, software solutions, Beverage purchases/payables, Beverage sales, 10 Billing statements, generation, 16 Bills creation, example, 233 credit, application, 88–89 deleting, 79–80 Accounts Payable register, usage, 80 necessity, 85 editing, 78–79 Accounts Payable register, usage, 79 entry, 76–78 See also Pay Bills window Accounts Payable register (usage), 77–78 Vendor Center, usage, 76–77 memorizing, 80–83 paying, 83–85 payments, QuickBooks usage, 16 receipt, example, 240f, 245f, 246f receiving, 235, 237 recording, example, 235f voiding, 79–80 necessity, 85 Vendor Center, usage, 79–80 Budget See Operating budget adherence, 197 corrective action, 197 creation, Profit & Loss Accounts/ Balance Sheet Accounts (usage), 194 data, input, 195f preparation, 194–195 summary, display, 196 Budgeted net income, difference See Actual net income Budget vs Actual Graph, 199–200 display, 200f Business assets, purchase/payments, 187–188 12/22/08 10:26:55 AM Index Business transactions document support, 220 recording, 169 C Calendar icon, selection, 78f year, dates, 14 Canceled checks, document support, 220 Cash account, balance, 186 amount, petty cash placement, 220 conversion, ease, 189 display, 187 equivalents, 189 receipts, timing (alteration), 169 theft, susceptibility, 220 Cash basis accounting, 275 financial data manipulation, 169 Cash flow bill payment, 70 forecast, preparation, 189–191 projector, 190–191 Cash Flow Forecast cash flow consideration, 190–191 date, selection, 190f report, 190 Cash flow statement, 278 account classification, alteration, 188 date, selection, 189f preparation, 187–189 Cash inflows/outflows categorization, 187 display, 190 projection, 191 Cash on Delivery (COD) payment, 100 Cash-related transactions (accounting), bank reconciliations (usage), 225 Catering businesses, estimates (usefulness), 16 delivery, 253 items, costs (relationship), 115 bindex.indd 283 283 services, providing (example), 136–137 Catering sales, 10 Certificate of Deposits, cash equivalents, 189 Chart of Accounts, 45 Account button, selection, 47f creating, 46–51 definition, 275 deleting, 51 editing, 46, 51 numbering system, usage, 46 Petty Cash account, absence, 220 sample, 60f–64f subaccounts, 65 usage, 46 Checking Account: Over/Short, example, 273 Checking Account, selection, 23f Checking preferences, 22–23 Check Register access, 89 Checks See Paychecks creating, 90–91 deleting, 92, 93 editing, 92 printing, 17, 90–91 receiving, 253 recording, 17 viewing/reversing See Voided checks voiding, 92–93 writing, 17, 238 CHK, selection, 92f usage, 89 See also Deposit Classes, role (identification), 59 Classify Cash, selection, 188 Class Tracking, 59 Closed checkbox, selection, 75f Collections Report, 131 Common-size statement, 185 definition, 275 Company file, creation, 11–19 information, entry, 11 12/22/08 10:26:55 AM 284 Index Company (continued) example, 13f usefulness, 13 legal name, 13 preferences, 275 account numbers, usage, 22f establishment, 21–26 Company Preferences Feature, usage, 11 Company Preferences tab, selection, 24f–26f Compensation review, 31f selections, 38f Comprehensive project, 227 Compressed file, 275 Computer and Internet Expenses account, selection, 258f, 262f Contractors/consultants, project time (tracking), 17 Cookbooks, receiving, 73–74 Copy Across, selection, 195 Corporation profits, retention/distribution, 219 selection, 14 Corrupt file, 276 Cost management, purchase order system (usage), 71 Cost of Goods Sold, 170 adjusting journal entry, 176 Cost of sales ratio, 276 Create Paychecks, selection, 150f Credit, 276 entry See Vendors Credit cards acceptance, 17 information, storage, 57 Credit memos data entry, 123f recording, 122–123 example, 135 Current asset, 276 Current cash position display, 190 bindex.indd 284 management concern, 189 Current date, field population, 83 Current liability, 276 Current obligations, meeting, 189 Current Quantity, shortages/ overages, 97 Current ratio, 186 definition, 276 Customer Balance Detail Report, selection, 131 Customer Balance Summary, 130–131 example, 130f Customer Center Additional Info, selection, 56f information/transactions, Payment Info, selection, 56f Customer Estimates creation, 124–126 data entry, 125f invoice creation, 125–126 Customer invoice creation, 222–223 example, 232–233 usage, 222 Customer Invoices advance deposit, application, 128 creation, 115–117, 223 example, 252 data, entry, 117f deleting, 118–119 Accounts Receivable Register, usage, 119 editing, 117–118 Accounts Receivable Register, usage, 118 Customer Center, usage, 117–118 form, usage, 115 generation, 115 printing, 119–120 selection, 116–117 voiding, 118–119 Customer Center, usage, 118–119 Customer Invoices, journal entries, 109–110 12/22/08 10:26:56 AM Index Customer Job, selection, 125 Customer List creation, 59 customer addition, 66 Customers creation, 54–57 editing/deleting, 59 partial payments, making, 122 payments data, entry, 121f recording, 120–122 preferences, 25 receivable, write-off decision, 221 summary See Sales by Customer Summary total amount owed, report (usage), 130 total sales, 132 D Data files, usage, 3–4 example, 229 Data integrity, 276 Dates drop-down list, usage, 166 Debit, 276 Debit cards, acceptance, 17 Debits/credits, equality (verification), 168 Debt owed, total amount, 186 Debt to equity, definition, 276 Delivery expectation, 237f–238f, 249f–250f, 254f–255f request, 244f Deposit (recording), Check Register (usage), 89 Deposit To (field), funds (recording), 121 Depreciation expense adjusting journal entry, 172 calculation production method, usage, 172 straight line method, usage, 172 computation methods, 172 bindex.indd 285 285 methods, usage, 175 recording, 172 Account Register, usage, 173–174 example See Monthly depreciation expense journal entry, usage, 173 Desktop, 276 DeWeese, Mike, 182 Disability insurance, setup, 42 Disbursements, timing (alteration), 169 Discount Account, Bad Debt expense account (appearance), 221 Dividend, 276 Dividend distribution, recording, 219–220 example, 258 $ Change, checkmark, 185 Dollar rounding, 183 Don’t Remind Me See Memorized transactions Double declining balance method, usage, 172 Drop-down list, 276 Drop-down menu, 276 Due on receipt, payment terms, 234 E Earnings, distribution, 219 EasyStep Interview, 11–19 definition, 276 Employee Center definition, 276 employee information, list preparation, 59 usage, 140 Employee Earnings Summary, 156, 157f Employee is inactive, checkmark, 154f Employee Journal by Check, usage, 160 Employees benefits, absence, 210 compensation, description, 31f Form W-2 completion, requirement, 209 12/22/08 10:26:56 AM 286 Index Employees (continued ) hiring, example, 256 name/address, entry, 36f paychecks creation, 146–151 processing, 203 payroll, manual acceptance, 10 project time, tracking, 17 record See New employee record editing, 146 inactivation, 152, 153–154 release, 152–153 tips inclusion, 30 receiving, federal/state regulations, 149 Employer identification number (EIN), 12 Employer’s Annual Federal Unemployment (FUTA) Tax Return See Form 940 Employers, Form W-3 completion/ submission, 209 Employer’s Quarterly Federal Tax Return See Form 941 Employer’s Tax Guide, 204 Employment information, example, 256–257 Enter Bills function, usage, 241, 251 selection, 77f window, selection, 87f Equipment bill, example, 261f delivery, 249 ordering, 241 Estimates See Customer Estimates function, activation, 124 usefulness, 16 Excel, reports (exportation), 184 External factors, 193 F Federal funds, disbursement, 204 Federal income tax withheld, reporting, 204 bindex.indd 286 Federal 941/944 payment schedule, 42 Federal payroll tax forms, manual preparation, 140 Federal tax information, 40f Field, 276 File backup, importance, 19–20 File corruption See Corrupt file File extensions, 276 types, Financial data manipulation, 169 Financial reporting/analysis, 179 Financial report preparation, dollar rounding, 183 Financial statements, 276 analysis, 228 components, relationship (evaluation), 185 generation, 168 Financing activities, 188 Fixed Asset Listing, 217f Fixed assets components, depreciation, 170 item asset entry, 215 creation, 216 data, 216 list, generation, 216–217 management, 175 process, 215–217 net value, 186 tangibility, 215 tracking system, presence, 175 Fixed expenses, constancy, 80 Fixed monthly budgeted amounts, entry, 195 Flash drive, 277 Food inventory, example, 266f–267f Food operators, software solutions, Food Purchases account, selection, 251, 254 Food purchases/payables, Food sales, 10 Food Sales, increase, 222 12/22/08 10:26:57 AM Index Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return, 204 example, 207f–208f Form 941: Employer’s Quarterly Federal Tax Return, 204 example, 205f–206f Form 1096: Annual Summary and Transmittal of US Information Return, 210–211 completion/submission, 211 Form 1099 MISC: Miscellaneous Income, 203 example, 211f usage, 210–211 Form W-2: Wage and Tax Statement, 203 change, 209 example, 210f fill-in versions, creation, 209 usage, 209–210 Form W-3: Transmittal of Wage and Tax Statements, 209–210 fill-in versions, creation, 209 Fraudulent transactions, detection, 225 Front of house applications, Full service restaurants, profit margin (NRA report), 180 FUTA See Form 940 Future cash position, management concern, 198 G Garnishment, payment, 35f General Ledger, 277 account tracking, 166 date range, selection, 168f journal entries, 109–110 preparation, 167–168 Gift cards expiration, outstanding balance (removal), 222 purchase, 222 sales, management, 222 transactions, recording, 222–224 Gift certificates bindex.indd 287 287 expiration, outstanding balance (removal), 222 purchase, 222 processing, 223 recording, customer invoices (usage), 223 redemptions, 223–224 transactions, recording, 222–224 Goods, receiving, 73–76 Gross profit, 277 margin, 277 Groups, creation, 83 H Hard drive, 277 Hire Date, entry, 145f Hiring information, selections, 37f Horizontal analysis, 185 definition, 277 preparation, 273 I Icon, 277 Inactive accounts, 51–52 Income and expense accounts review, 19f usage, 212 Income statement, 277 Independent contract, payments, 210 Information, management manipulation, 184 Initial stock issuance, recording, 217 Insurance expense, 170 recording See Record Monthly Insurance Expense fixed expense, 81 Insurance Benefits, review, 33f Interface, application, 110 Internal control, 277 Internal Revenue Service forms, ordering, 209, 211 Publication 15 (Circular E), 204 Publications 1141/1167/1179, 209, 211 12/22/08 10:26:57 AM 288 Index Internet service bill, entry (example), 258 Intuit (company), 277 Inventory adjustments, 70 making, 96–97 levels, management, 17 management systems, 98–99 tools, customer supply, 71 part, 57 Preferences, 23–24 receiving, 233 reductions, attribution, 97 software, interface, 98–99 stock status, 93–94 systems, availability, 98 tracking, 98 turnover, 277 value, calculation (complication), 97 worksheets See Physical inventory worksheets Inventory on Hand, 93–94 Inventory Stock Status, report availability, 94f Inventory Valuation Summary, 104 report, example, 273 Investing activities, 187–188 Invoices, 277 See also Customer Invoices checkmark, placement See Outstanding invoices creation, estimate (usage), 125–126 credit, application, 123 document support, 220 Item list, items (addition), 66–67 Items categorization, 57 creation, 57–58 data, entry, 58f editing/deleting, 59 Preferences, 23–24 bindex.indd 288 J Journal entries See Adjusting journal entries explanation, 165 memo, entry, 171 numbers, assignation, 113 usage, 222 See also Depreciation expense; Restaurant example, 134–135 Journal preparation, 166–167 Journal window, date range selection, 167f L Learning Center tutorials, Liability, 277 account, usage, 222 Limited liability company (LLC), 14 Limited liability partnership (LLP), 14 Linen and Dry Cleaning Expense account, usage, 239f, 251f selection, 81f Linen bill, receipt, 81 Liquidity, 277 bill payment, 70 determination, 186 Liquor inventory, example, 268f Lists preparation, 59–64 usage, 45 Long-term assets, depreciation, 170 Long-term fixed assets, depreciation expense, 172 Long-term liability, 277 M Maintenance bill, example, 259f Maintenance Fee Expense account, usage, 241 Make Deposits window, information entry, 218f Manual payroll, usage, 29 Medicare amount, reporting, 204 Memorized Reports, selection, 184 Memorized transactions 12/22/08 10:26:58 AM Index Automatically Enter option, 83 Don’t Remind Me option, 82 options, 82f Remind Me option, 82 setup, 80 Memorize General Journal, selection, 174f Merchant Services, information, 17 Mileage reimbursement, selections, 35f Miscellaneous Income See Form 1099 MISC Monthly adjusting journal entry prepaid expenses, recording, 170 recording, 173 Monthly bank statement, example, 226 Monthly depreciation expense, recording (example), 270 Monthly insurance premiums, QuickBooks calculator (usage), 172 Monthly rent expense, 230 N Net Worth Graph, visual display, 186 New Company, selection, 12 New company file, creation, 228 New Customer, selection, 55f New employee record Address and Contact information, entry, 143f creation, 142–146 data, 146 Hire Date, entry, 145f information, entry, 142f Payroll and Compensation Info, selection, 143f taxes, entry, 146f Taxes, Federal/State tabs (information entry), 144f New Quantity, shortages/overages, 97 Newspaper subscription fee, check writing (example), 263 New Vendor information, entry, 53f Non-inventory part, 57 bindex.indd 289 289 Non-positing account, 71 Non-profit (not-for-profit) organization, 14 Nonrefundable advance deposit, 128 receipt, example, 137 O Objective evidence, accounting theory, 220 Office supplies, purchase, 237 Off-site catering event booking, 236, 253 estimate, request, 248 example, 254f Oleksinski, Jr., William A., 112 On-site catering job, customer invoice (creation), 232 Opening balances entry, 49 recording, 28 Open POs Exist, selection, 73f Operating activities, 187 Operating bank account, entry, 18 Operating budget definition, 193 factors, 193 preparation, 193–195 reports, 195–200 Operating processes/activities, 9–10 Organization goals/objectives, management establishment, 193 Other Beverage Inventory, example, 269f Other Current Asset, selection, 48f, 50f Other Payroll Items, usage, 148, 149f Outstanding invoices, checkmark (placement), 121 Owner equity, 277 P Paid Time Off, selections, 34f Par levels, 93–94 manager establishment, 93–94 Partial payments, making See Customers 12/22/08 10:26:58 AM 290 Index Partnership, 14 Passwords, 277 sequence, 14 Pay Bills function, usage, 236, 241 icon, selection, 84f window, bills (entry), 84 Paychecks creation, 147f–148f deleting, 151, 152 editing, 151 loss, 247 printing, 150f, 151f recording, example, 150f tips, usage, 149 voiding, 151–152 Paychex, payroll outsourcing, 154 Pay Employees icon, selection, 147f Payment Info, selection, 56f Payment terms, 234 Pay period, example, 242f–244f Payroll data See Summarize Payroll Data in Excel examples, 162–163 functions, outsourcing, 2–3, 17 information, example, 256–257 in-house processing, 140 restaurant decision, 203 manual acceptance, QuickBooks setup, 28–32 options, 140–141 outsourcing, 154–155 penalties, 203 recording, 241 example, 242f–244f, 264f–266f setup, 29–43 taxes, inclusion, 139 usage, 139–140 Payroll Liability Balances, 158f Payroll-related reports, 155–160 Payroll Setup window, 30f Payroll Summary, 156f Payroll Transactions by Payee, 157f bindex.indd 290 % Change, checkmark, 185 Period end date, establishment, 212 Personal Info, selection, 154f Personal information, example, 256–257 Petty cash account, creation, 220–221 fund, establishment, 220–221 Physical inventory counts, 94–95 example, 266 process, QuickBooks capability, 95 worksheets, 94–96 example, 95f Physical Inventory Worksheet, example, 107f Pivot Table field list, access, 159 Pivot tables, 159f Point-of-sale (POS) provider, usage, 222 Point-of-sale (POS) systems, interfaces, 110–112 software company development, 111 software providers, 111 usage See Restaurant; Sales Preferences See Accounting preferences checking, 22–23 establishment See Company feature, 21–22 Prepaid expenses account, payment (recording), 270 adjusting journal entry, 170–172 good/service, payment, 170 increase, 170 payment, recording, 270 Prices, change, 74 Production method asset basis, 172 usage, 172 Profitability measurement, Profit & Loss Statement (usage), 187 12/22/08 10:26:58 AM Index necessity, 180 Profit & Loss Accounts, usage See Budget Profit & Loss Budget date, selection, 196f overview, 196–197 example, 201f–202f Profit & Loss Budget Performance, 198–199 date, selection, 199f Profit & Loss Budget vs Actual, 197–198 date, selection, 198f report, generation (example), 273 Profit & Loss by Account, example, 230f Profit & Loss Detail Report, selection, 182 Profit & Loss Prev Year Comparison, report, 185 Profit & Loss Standard, date range selection, 181f Profit & loss statements customization, 181 process, 182–183 Display No Cents, customization, 183 examples, 272 Fit report to page(s) wide, checkmark, 183f fonts, customization, 182 memorization, 183–184 numbers, customization, 182 preparation, 180–185 reports emailing, Excel document format, 181 portrait orientation, customization, 183 title, customization, 182 usage See Profitability Profit & Loss YTD Comparison, report, 184–185 modification, 185 Profit margin See Total profit margin impact, 180 Progress invoices, usage, 16 bindex.indd 291 291 Purchase orders bill conversion, 73–74 closure, 75–76 creation, 72–73, 235, 236 See also Vendors examples, 231f, 233f–234f, 237f–238f, 244f order closure, 74 data entry, 72f population, 74f definition, 71 number, vendor identification (restaurant operator requirement), 71 quantity, change, 74 usage, 70–73, 237 Purchases by Item Summary, 103 Purchases by Vendor Summary, 102 Purchases/payables, components, 9–10 Purchasing definition, 70 process, 70 Q Quantity on hand (QOH), 24 adjusting, 96–97 Quantity sold, information, 133 Quarterly Payment frequency, selection, 32f, 33f QuickBooks assisted payroll, 141 backup file (.QBB), definition, 278 usage, 21 basic payroll, 141 calculator, usage, 172 Coach, usage, customization, 167 data files, 3–4 enhanced payroll, 141 files backup, 19–21 12/22/08 10:26:59 AM 292 Index QuickBooks (continued) extensions, types, restoration, 21 Help, 7–9, 204 access, search, usage, home page, display, 5f industry needs, differences, 13 interfaces, 111 Live Community, usage, online payroll, 141 payroll options, 140–141 setup See Payroll software, overview, 4–6 versions, working file (.QBW), backup/restoration, 19–20 creation/customization, EasyStep usage, 11 Quick ratio, 278 R Rates & Hours by Job, 160 Ratio analysis, 185 definition, 278 Receipts, document support, 220 Receivables allowances, amount, 186 recording, 109–110 Record, 278 Recording Deposits function, 165 Record keeping errors, avoidance, 224 Record Monthly Insurance Expense, 171f Refresh Automatically, selection, 167, 181 Refund, giving, 123f Refundable advance deposit, 126–128 data entry, 127f entry, 127 recording, example, 137 Refundable deposit, recording, 175 Release Date, entry, 153f bindex.indd 292 Remind Me See Memorized transactions Rent expense, 170 example, 230 Report Center, 278 Reported Cash Tips, usage, 149 Reported Paycheck Tips, usage, 149 Reports, 99–104, 129–133 automatic refresh, 167 customization/modification, 99 exporting See Excel list, 271–272 variety See Payroll-related reports Reports Center, report generation, Reports & Graphs preferences, 24–25 Residual value, 172 Restaurant functions, 215 industry, payroll (usage), 139–140 manager, accounting process (importance), 6–7 operation, elements, 93 profile example, usage, 229 sales (recording), POS system journal entries, usage, 113–114 usage, 112–114 Restaurant operators finance complexity/details, impact, focus, 6–7 Restore file, 278 Retail Inventory, example, 269f Retail items, addition, 10 Retail sales, 10 Retained earnings, 278 Return on assets (ROA), 278 Return on equity (ROE), 278 Revenue, recording, 175 S Salary and wage accrual, adjusting journal entry, 176 12/22/08 10:26:59 AM Index Sales capture, POS system (usage), 110 preferences, 25 recording, 109–110 Sales by Customer Summary, 132 Sales by Item Detail, 133 Sales receipts, generation, 16 Sales/receivables, 10 Sales tax amount, recording, 222 collection/payment, state/local requirement, 224 payments, recording, 224 usage, 57 Sales Tax Item, selection, 26f Sales Tax Payable, increase, 222 Sales Tax preferences, 26 Salvage value, 172 definition, 278 S corporation, 14 Scrap value, 172 Select Checks to Print, selection, 91f Select Reconciliation Report, printing, 226 Server, 278 Service, 57 Set Credits, selection, 88f Set Discount, selection, 86f Shareholders, profit distribution, 219 Short-term investments, cash equivalents, 189 Show All Bills, selection, 88f Shrinkage, account (establishment), 97 Social Security amount, reporting, 204 Sole proprietorship, 14 Statement of cash flow See Cash flow statement State payroll tax forms, manual preparation, 140 State tax information, 41f Stock, 278 Stock issuance, recording, 217–218 example, 231 bindex.indd 293 293 Straight line depreciation expense, recording, 174 Straight line method, usage, 172 example, 172 Subaccount creation, 49–51 entry, 50f Summarize Payroll Data in Excel, 158–159, 159f Supplies inventory account balance, 270 T Table service restaurant, Chart of Accounts (sample), 60f–64f Taxable income, depreciation expense (impact), 175 Taxable item, customer invoice creation, 222–223 Taxes, selections, 40f Tax-exempt customers, non-taxable sales (assignation), 56 Tax forms completion, QuickBooks Help, 204 filing, 203 Tax ID number, 12 Tax liability, 204 Tax return, due date, 204 Temporary accounts, balances, 212 Theft, account (establishment), 97 Tips, receiving (federal/state regulations), 149 To Go containers, 97 Total profit margin, 278 Transactions details, display, 169 examples, 230 generation, example, 228 Transmittal of Wage and Tax Statements See Form W-3 Trial balance definition, 279 ending balances list, 166 preparation, 168 12/22/08 10:27:00 AM 294 Index Trial balance (continued ) Trial Balance, date range (selection), 169f Turnover See Assets; Inventory U Unearned revenue, adjusting journal entry, 175 Unpaid Bills Detail, 101–102 example, 101f U.S Information Return, transmittal See Form 1096 U.S Postal Service, check writing (example), 253 Utilities, bill (example), 260f Utilities Expense account, selection, 263f V Vendor Balance Summary, 100–101 example, 100f Vendor Center definition, 279 inactivate/reactivate selection, 53f Independent Contractor selection, 53f information/transactions, list preparation, 59 purpose, 52 Vendor List, vendors (addition), 65 Vendors address/terms, identification, 77 amounts owed, management awareness, 101 bills, payment, 252 creation, 52–54 credits entry, 87 usage, 86–89 delivery, 234, 239, 256 discounts, usage, 85–86 bindex.indd 294 editing/deleting, 59 entry, 77 independent contractor status, 54 purchase order, creation, 249 purchases, summary See Purchases by Vendor Summary Vertical analysis, 185 Voided checks, viewing/reversing, 94 W Wage and Tax Statement See Form W-2 transmittal See Form W-3 Wage garnishment, selections, 35f Wages, information, 38f Waste, account (establishment), 97 Weekly sales (recording), journal entry (usage), 232, 236, 247, 252–253, 259–260 Window, 279 Wine inventory, example, 268f Withholding, recording, 148, 149f Working capital, 279 calculation, 186 Working file (.QBW), establishment, 19–20 Write Checks data, usage, 90f feature, usage, 232, 238 function, 165 information entry, 219f option, usage, 83 Wysocki, Susan, 185 Y Year-end procedures, 203 closing process, 212 Year-end reporting, 203 closing process, 213 YTD Summaries, 160 12/22/08 10:27:00 AM CUSTOMER NOTE: IF THIS BOOK IS ACCOMPANIED BY SOFTWARE, PLEASE READ THE FOLLOWING BEFORE OPENING THE PACKAGE This software contains files to help you utilize the models described in the accompanying book By opening the package, you are agreeing to be bound by the following agreement: This software product is protected by copyright and all rights are reserved by the author, John Wiley & Sons, Inc., or their licensors You are licensed to use this software on a single computer Copying the software to another medium or format for use on a single computer does not violate the U.S Copyright Law Copying the software for any other purpose is a violation of the U.S Copyright Law This software product is sold as is without warranty of any kind, either express or implied, including but not limited to the implied warranty of merchantability and fitness for a particular purpose Neither Wiley nor its dealers or distributors assumes any liability for any alleged or actual damages arising from the use of or the inability to use this software (Some states not allow the exclusion of implied warranties, so the exclusion may not apply to you.) both01.indd 295 12/22/08 10:26:14 AM Discover how QuickBooks can help a restaurant succeed ® If you’re a current or aspiring food-service professional, accounting probably wasn’t one of the things that attracted you to the field Yet without proper bookkeeping and financial reporting, it’s very difficult for any restaurant, bar, catering operation, or other hospitality business to succeed • Every chapter offers review problems to help you practice the skills you’ve learned and build critical thinking abilities • Data files on the companion CD-ROM simulate restaurant scenarios and help you hone your QuickBooks expertise and financial management proficiency • A companion Web site provides updated data files and coverage of the latest QuickBooks versions The first and only guide to QuickBooks and accounting fundamentals written specifically for the hospitality industry, QuickBooks for the Restaurant offers solid, step-by-step instruction, restaurant-specific examples, and coverage of industry issues, such as integration with point-of-sale systems With special emphasis on the decision-making skills necessary to become a successful manager in the restaurant industry, QuickBooks for the Restaurant is an invaluable resource for culinary arts students and food service professionals everywhere STEPHANIE MURPHY, CPA, and ALISA R NEUNEKER are both Assistant Professors of Business Management at The Culinary Institute of America in Hyde Park, New York for the Restaurant • Throughout, QuickBooks Tips and Accounting Tips explain how to work smarter, and Industry Interviews offer real-world tricks of the trade đ ã A comprehensive project at the end of the book helps you pull together everything you’ve learned as you analyze data and make business decisions QuickBooks This book shows how you can use QuickBooks, the leading small-business accounting software, to automate financial reporting, control costs, and maximize profits in any food or beverage business Using the operations of a fictional “Aroma Ristorante,” it walks you through QuickBooks features and functions step by step, explains accounting fundamentals, and demonstrates how QuickBooks can help you solve the real-world challenges of running a food service business Murphy • Neuneker Business & Economics / Hospitality QuickBooks ® for the Restaurant Stephanie Murphy A ND Alisa Robertson Neuneker Cover Design: Jeff Faust Cover Photographs: Top, iStockphoto/© Pali Rao Bottom, iStockphoto/© Huchen Lu Includes CD-ROM Includes CD-ROM ... at the end of the course The project would assist with tying accounting principles together and reinforcing the objectives for an entire course Computer course or computer lab: QuickBooks for. .. on the top-right of the desktop Tutorials provide information on how to use the features of QuickBooks and how to perform specific QuickBooks functions The Coach Tips feature provides further... company information allows QuickBooks to use this information to complete company forms, such as invoices and tax forms The user will not have to reenter the company information every time a form