+971 557 188 763
[email protected]
Connect Us

Accounting Services for Restaurants

Restaurant industry has grown exponentially during the past decades in UAE. UAE has a pot of ethnicities for restaurants we see today. Despite the UAE demographics, there is a wide option for any number of cuisines from all over the world. Dubai provides amazing facilities and locations to start restaurant businesses. Since municipality restrictions are rare, which made it easier for the businesses to open. Along with that, there is always high demand from the side of customers to explore new concepts, which results in new establishments. Accounting for restaurants will allow them to achieve financial peace within the business. New restaurant start-ups are driven by the art infrastructure and the ease of doing business. A growing variety of foreign and local concepts in the restaurant industry have raised the level of competition in the sector. Highest standards to be maintained for being accepted by the public and tourists. Technology has paved a way to customers for everything taps away. Today, one can search and order food, ask for delivery through their phone apps. This trend is good for customers as well as technology companies for their business expansion. Major expenditures to track:

* Accounts Payable: Paying your suppliers and buyers on time makes efficiency in the purchase management system.

* Inventory: A better inventory management system helps to avoid food shortages and wastages along with smooth functioning. On tracking consumable supplies helps to find average daily cost

* Payroll: It’s difficult to maintain the track in working hours of employees. Multi positions and working hours can be different from the front office and back office functioning.

* Cash Management: Cash flow management services help in analysing cash inflow and outflow of business.

* Sales: Revenue earned from food and beverage categories.

* Reconciliation: Frequent reconciliation of your accounts, including bank accounts, credit cards, loans ensures the right accounting system.

How accounting is done for restaurants?

Accounting for restaurants begins with the preparation of the chart of accounts and classifying the expenses based on their occurrences. The chart of accounts includes the following items:

  • Foodstuffs: asset, Operating Expense, Category: Perishable and non-perishable 
  • Revenues include: Drink Sales, Food Sales, Other Sales
  • Expenses: Beverage Sales, Food Sales, discounts 
  • Occupancy Expenses: Rent Expense, Insurance on Building, Security Alarm Services, Building Repair and Maintenance, Property Taxes, Utilities, Disposal Services
  • Labour Expenses: Salaries and Wages, Health Insurance, Meals and Discounts
  • General Employee expenses: Bartender, Bussers, Host/Hostess, Servers, Cooks, Dishwashers
  • Other Operating Expenses: Bad Debt, Licenses and Permits, Corporate Taxes, Marketing Expenses, Linens, Laundry, and Uniforms, Restaurant Décor, Office Supplies, Fines and Penalties, Postage and Mailing, Interest Expense, Depreciation Expense.

How CDA helps you?

As a team of highly qualified professionals and experts we assure the following accounting services to restaurants with at most care and maintain high ethical values. Our services are:

Provide Ideal Accounting Bookkeeping Services

Bookkeeping is a complex task in an accounting system. CDA promises the best Outsourcing Services in Bookkeeping that is suitable for your business to grow as well as to comply with the existing Tax laws of the Emirates. It includes:

  • Appointing qualified and skilled bookkeepers for maintaining the records and transactions up to date
  • Selecting the best accounting software for customizing the records and data.
  • Prepares chart of accounts to categorize the cash flow of the businesses.
  • Choose the right POS (Point of Sale) system for the management of a business.

Business Advisory Services through Financial Analysis

Business advisory services emphasis on making strategies for the success and growth of a business. The advisors are a collection of business coaches, mentors and accountants. They examine the previous trends and combine them with forecasts, ask questions to understand the whole picture of the client’s businesses. Some key ratios are considered they are:

  • Cost of food: It is based on the cost of preparation divided by total revenue. It measures the profit derived from each item on the menu.
  • Prime Costs: It is calculated based on the summation of labour cost and cost of goods sold
  • Overhead Rates: Fixed business costs which run the businesses; rent
  • Cost of Goods Sold: it represents the inventor at a given point of time.
  • Gross Profit: It is the money left over after paying all business-related expenses

Based on the above values the new business strategies are introduced.

CFO and Controller Services

Preparation of monthly budget vs actuals reports, management reports upon a request of the owner or manager and developing of accounting policy and reports

Internal Audit Services

Ensuring proper internal controls and frequent review of accounts with accuracy and materiality. Our services are to:

  • Categorise audit method for the exact requirements of the client.
  • Implement audit method according to the uppermost professional standards in accordance with the International Standards on Quality Control, Auditing, Review, and Other Assurance and Related Services.
  • Interact with our clients to recognise high-risk areas and find ways to control the prevailing risk. 
  • Connect our clients regularly and provide them with information to make effective business decisions.

External Audit Services

Our external audit services include the following functions:

  • Independent examination of the validity of the company’s financial records
  • A careful study on the company’s accounting books, payroll, purchasing records
  • Scrutinise the records for financial misstatements due to mistake, deception, or misappropriation 
  • Preparation of comprehensive and impartial reports on corporate ethics for management executives.

Tax Audit Consultation with VAT filings

CDA provides the following VAT Accounting services to restaurant companies:

  • VAT Registration & tax filing process
  • VAT planning
  • Train you on VAT laws in UAE
  • Interpret and classify tax group for you
  • Update you with FTA’s new legislation and rules
  • Provide advice on VAT rates
  • Maintains the requirements for Reverse Charge Mechanism

CDA Client Portfolio

CDA provides restaurant-specific accounting for restaurants across UAE, we provide specialised accounting services and remain trustworthy in strategizing business ideas. Our services include Bookkeeping & Accounting, VAT Consultancy, TAX, CFO Services, Management Accounting and Internal Audit.

“Great team! impressed with their work, I wish CDA all the success.”

Ronaldo Bremman

Managing Director, Al Sakab Restaurant LLC


Frequently Asked Questions on Accounting for Restaurants in UAE

To open a restaurant business in Dubai the FOOD CODE to be followed: set up by the Food Control Department of Dubai Municipality. It was established to instil safety standards.

The food code applies to (1) restaurants, hotels, cafeteria, and cafes, (2) bakeries & butcheries, (3) supermarket, grocery, and departmental stores, (4) food factories and warehouses, (5) catering services, supplies to ship, desert camps, events and canteens, (6) food packing material manufacturers (7) kiosks and mobile vending operations.

Special food license includes a liquor business, which is to be applied at police headquarters. Dubai government-imposed tax rate of 30% for the sale of liquor.

As accounting consultants, we conduct a study on our client’s requirements and recommend the suitable accounting software pertaining to the client’s needs. We help to automate the process and provide training.

Our prices are in competitive nature, we charge 50% advance payment for all our services. Our monthly rates are based on accounting software used, company type, contract term, skill, experience and Frequency of visits.

On purchasing suitable accounting software, it helps in accounting, bookkeeping and VAT services along with the generation of various reports timely.

Our consistent reach to customers service requirements and prioritised decision making helps in business success. Our expert team and their proactive business advice on accounting and tax compliance make us unique in this arena.

Yes, we prepare the chart of accounts according to cuisine and apply the cost centre to know the actual cost and benefit out of each cuisine.

For start-ups, we always recommend outsourcing your accounting work and once the business is established, you can opt for in-house which is cost-effective and professional in nature.

Request a Free Consultation

Fill in the form below, and we'll get back to you within 24 hours.

Need professional help? Talk to our experts for the best advice.