Glossary

Cost of goods sold. What you spent on the food and drink you sold in a period.

The two sides of every journal entry. They must add up to the same amount, which is how your books stay in balance.

General ledger account. One of the named buckets on your books, like Food Sales or Sales Tax Payable, that every dollar is sorted into.

An automatic service charge added to a check, like 18% on a large party. It's recorded separately from tips the guest chooses to leave.

A record of money moving between GL accounts. Each one lists debits and credits that must be equal.

Checking and finalizing a month's books so your reports for that month are complete and accurate.

Sales after discounts, comps and voids, before sales tax and tips.

The account that holds any difference when a day's sales and payments don't match exactly. Aim to keep it at $0.00.

Profit and loss statement. Shows your sales, costs and profit for a period.

Point of sale. The system you ring up checks on, like Toast or Square.

COGS plus total labor cost. Usually a restaurant's biggest controllable expense.