In this tutorial, we will practice how to set up an accounting system right from scratch for a restaurant business using YAPBooks free accounting software and post daily transactions too.
Access YAPBooks using this link and open it on your computer or mobile phone.
Follow this tutorial and post your first restaurant transaction today.
What is a Restaurant Business?
A restaurant (or eatery, food spot, or canteen) is a service business that prepares and sells food to customers - from local buka joints to modern fast-food outlets. It could be dine-in, takeaway, or even delivery-based.
Unlike retail shops, restaurants handle both product and service - they buy ingredients, cook them, sell meals, and manage staff. This makes restaurant accounting a bit more complex than a simple buy-sell business.
The Pain Points of Restaurant Owners
Most restaurant owners are amazing cooks and businesspeople, but accounting often feels like “too much paperwork.” Here are common challenges they face:
- No record of ingredient usage – They buy rice, oil, meat, but can’t tell how much becomes waste or profit.
- Unclear daily profit – They know they sell food daily but can’t say how much they actually make after costs.
- Unrecorded staff expenses and wages – Staff are paid in cash without tracking.
- Supplier credit confusion – Vendors are owed, but no one remembers how much or when.
- No financial reports – They can’t easily tell if they’re growing or losing money.
All these are accounting gaps - and that’s where YAPBooks is helpful. Remember to access YAPBooks using this link
The Opportunity for Accountants
If you’re an accountant or accounting student, restaurants are one of the most profitable small business segments you can work with.
They handle daily transactions, multiple expense lines, and cash-heavy operations, which means they desperately need structure.
Here’s what you can offer using YAPBooks accounting software:
- Set up a restaurant’s accounting system
- Record daily sales and supplier purchases
- Track cost of ingredients and gross profit
- Produce monthly reports for decision-making
Accountants using YAPBooks can earn ₦15,000–₦30,000 per restaurant monthly - either managing their books or training the owner/staff to do it.
Let’s see how you can set it up in YAPBooks.
How to Set Up Accounting for a Restaurant Using YAPBooks
We’ll use a sample restaurant - “Tasty Corner Foods” - to illustrate every step.
Step 1: Create a New Company in YAPBooks
When you open YAPBooks:
- Click “Add New Company”
- Enter: Company Name – Tasty Corner Foods
- Business Type – Hospitality / Restaurant
- Reporting Currency – ₦ (Naira)
You now have a clean company workspace for your restaurant.
Step 2: Build Your Chart of Accounts
This is the foundation. You’ll classify income, expenses, and assets properly. Use YAPBooks in-built COA or set up one. Here’s what a simple setup for a boutique should look like:
Assets
- 101 – Cash at Hand
- 102 – Bank Account
- 103 – Kitchen Equipment
- 104 – Food Inventory (Raw Materials)
Liabilities
- 201 – Trade Payables (Vendors)
- 202 – Staff Salaries Payable
- 203 – Rent Payable
Income
- 301 – Food Sales
- 302 – Drinks Sales
- 303 – Catering Services
Cost of Sales
- 401 – Raw Food Purchases
- 402 – Cooking Gas & Power
- 403 – Packaging Materials
Expenses
- 501 – Staff Wages
- 502 – Rent
- 503 – Transportation
- 504 – Repairs & Maintenance
- 505 – Cleaning & Waste
- 506 – Miscellaneous Expenses
You can add more if needed (e.g., Delivery Expenses, POS Charges).
Step 3: Record Opening Balances
Let’s assume the restaurant is starting in January with:
- Cash at Hand – ₦50,000
- Bank Account – ₦200,000
- Food Inventory – ₦150,000
- Kitchen Equipment – ₦300,000
Owner contributed this capital.
Journal Entry:
| Account | Debit | Credit |
|---|---|---|
| Cash at Hand | ₦50,000 | |
| Bank Account | ₦200,000 | |
| Food Inventory | ₦150,000 | |
| Kitchen Equipment | ₦300,000 | |
| Owner’s Capital | ₦700,000 |
Now YAPBooks reflects your restaurant’s opening position.
Step 4: Record Purchases from Vendors
On January 2, you buy supplies worth ₦80,000 (rice, meat, oil) from FoodPro Distributors Ltd on credit.
Go to Suppliers → Bills
- Vendor: FoodPro Distributors Ltd
- Description: Raw materials for kitchen
- Amount: ₦80,000
This automatically updates your Inventory (Food Stock) and your Payables.
Step 5: Record Daily Sales
Let’s say on January 5, you make:
- ₦65,000 in Food Sales
- ₦15,000 in Drinks
Total: ₦80,000
Cash received: ₦50,000
POS/Transfer: ₦30,000
Go to Customer → Invoices
- Client: Walk-in customers (daily total)
- Sales: ₦80,000
- Payment: ₦50,000 Cash, ₦30,000 Bank
YAPBooks will post income to Food Sales and Drinks Sales automatically.
Step 6: Record Expenses
Daily running costs are critical.
On January 6, the restaurant spends:
- ₦10,000 on Gas
- ₦5,000 on Electricity
- ₦2,000 on Transportation
- ₦25,000 Staff Wages
Go to Journal Entries → New Journal, and record each under the right account.
Recording these daily helps the restaurant know exactly what’s eating into profits.
Step 7: View Profit & Loss Report
After posting sales and expenses, open Reports → Profit & Loss.
Here’s what you might see for January:
| Item | Amount (₦) |
|---|---|
| Sales (Food + Drinks) | 80,000 |
| Less: Cost of Sales | (17,000) |
| Gross Profit | 63,000 |
| Less: Expenses | (42,000) |
| Net Profit for the Day | ₦21,000 |
Now the restaurant can see that every ₦80,000 in sales leaves ₦21,000 in real profit.
Repeat this for each day or week to spot patterns.
Step 8: Generate Reports for the Owner
Accountants can go beyond bookkeeping by providing insights.
Show them:
- Monthly Profit Trend
- Top Expenses (e.g., Gas or Wages)
- Cash Flow Report (how much cash remains)
- Vendor Payables (who they owe)
In YAPBooks, these reports are generated instantly, even offline.
Step 9: Turn It Into an Accounting Service
Now here’s how you, as an accountant, make money from this setup.
Offer restaurant owners:
- Basic Package: Monthly Bookkeeping + Profit Report – ₦15,000
- Standard Package: Bookkeeping + Monthly Report + Advisory – ₦25,000
- Premium Package: Includes Payroll, Tax, and Training – ₦35,000
You can manage 5–10 restaurants remotely using YAPBooks. Each business you onboard becomes both a client and a referral source.
Key Takeaways
The business of restaurants don’t fail because the food is bad rather, they fail because the numbers are invisible.
With YAPBooks, you can help food businesses:
- Know their true cost per plate
- Control expenses
- Track profit
- Grow sustainably
And as an accountant or accounting student, this is your opportunity to offer a high-value, practical service that gets real results.
