Restaurant invoicing software

Restaurant owners work long hours and need to reduce as much as possible the time devoted to the administrative side of their job. Accounting for a restaurant requires careful management, since it involves highly varied expenses (purchasing raw materials, staff wages, fixed costs, etc.). In addition, the restaurateur must juggle two VAT rates depending on the destination of their preparations (eat-in or takeaway), as well as their drinks, with or without alcohol. It therefore appears essential to use restaurant invoicing software that is powerful and tailored to the specifics of this trade.

The restaurateur’s business

Every restaurateur registers with the trade and companies register in order to operate their establishment. They can choose the legal status under which to register their company: EURL, SASU, SARL, SAS, etc.

Restaurant invoicing software must take into account the legal status selected, in order to meet the accounting obligations, which differ for each one.

The specifics of restaurant invoicing software

Every business has its own particularities. These must be compatible with the features offered by the restaurant invoicing software.

Accounting for investments in the restaurant business

A restaurant uses kitchen equipment that represents significant investments. In addition, in order to properly welcome customers, the fittings, decor and furniture of the dining room must be kept in good condition, which requires recurring renovations and purchases.

The restaurateur must be able to enter these expenses into their restaurant invoicing software and treat some of them as depreciation. This notably concerns:

• fittings to improve the welcome area as well as kitchen work;
• upgrades to comply with changing regulations, particularly health regulations;
• dining room furniture: tables, chairs, bar, decorative elements, etc.;
• outdoor fittings: façade, signage and terrace;
• kitchen equipment: cooktops, ovens, refrigerators, etc.;
• the cold room;
• various renovations for health reasons, among others.

Fixed costs

In their accounting, the restaurateur includes their fixed costs. Energy bills are particularly significant given the nature of the activity: heating and air conditioning for the dining room on one hand, and consumption from cooking and refrigeration equipment on the other.

Bizyness software lets you list all these expenses in a single tab, making them easier to manage. Indeed, this significant expense category deserves special attention, in order to find ways to save on operating costs that weigh on the restaurant’s margin.

These costs include:

• energy expenses;
• rent or mortgage payments;
• professional equipment rentals;
• insurance;
• professional license;
• equipment maintenance;
• bank fees;
• telecommunications costs;
• staff costs;
• accountant’s fees;
• advertising and communication expenses, etc.

To this must naturally be added the expenses for sourcing food and drinks used to prepare meals.

VAT in the restaurant industry

The specificity of the restaurant sector is applying two different VAT rates. It is therefore essential that the restaurateur’s invoicing software handles these different VAT rates.

1. 5.5% VAT for takeaway sales.

2. 10% VAT for sales consumed on the premises.

Sales consumed on the premises (except alcoholic drinks) have benefited from the reduced 10% VAT rate since January 1, 2014. This applies to restaurants, but also to catering companies, as well as the supply of food preparations for private or professional events.

For fast food, the VAT rate applied is 10%, whether or not the products are consumed on the premises. Indeed, the 5.5% VAT rate only applies to food products that are not intended for immediate consumption, which is not the case for on-premises dining.

Only takeaway sales in specific containers that allow the products to be preserved, and thus consumed later, benefit from the reduced 5.5% VAT rate.

VAT on drinks

• Alcoholic drinks are treated separately and are subject to the full 20% VAT rate.
• Non-alcoholic drinks intended for immediate consumption remain taxed at 10%.
• Non-alcoholic drinks in containers that allow storage, such as bottles and cans — i.e. takeaway sales — are taxed at 5.5%.

Managing VAT in restaurant invoicing software

Managing VAT quickly becomes tricky, which is why it’s worth using invoicing software that accounts for both VAT rates. This allows the restaurateur to break down the various products they purchase according to their use, and therefore the VAT rate applied to them.

If you cannot distinguish these differences in your accounting, the total of your expenses is subject to the highest VAT rate.

Recovering VAT

In return for collecting this tax on behalf of the State, the restaurateur recovers VAT on most of their expenses (purchases of food and drinks, rent, equipment rental, etc.). To do this, they must file a VAT return listing the revenue collected over the declared period, taking into account the breakdown by VAT rate applied.

Restaurant accounting software

To select accounting software for your restaurant, you need to take the above elements into account. With software like Bizyness, you save time thanks to its smart settings and ease of use.

You enter all your expenses and income in dedicated tabs. If you need to issue invoices, the intuitive interface lets you customize your documents in just a few clicks.

You can generate a wide range of exports, using different settings depending on their recipient: tax authorities, banker, accountant, potential investors or partners, etc.

Your restaurant accounting in the cloud

Your restaurant accounting data is stored in the cloud. As a result:

• you don’t need to rent your own IT infrastructure;
• you don’t have to worry about backups and updates;
• your computer isn’t overloaded;
• you can access your accounting from wherever you are;
• you can share access with a collaborator or your accountant;
• you stay compliant with the law.