how to do coffee shop accounting

So you can typically get everything from barista training to marketing advice from your wholesale coffee roaster. The startup staffing stage of running your coffee shop can be difficult. Labor will likely account for 30% or more of your costs; hire too many people, and costs balloon, hire too few, and service could suffer. Whether you plan to be an independent or franchise coffee shop, you’ll need to file your business with the state—and typically the city—where you will operate.

Preparing for taxes

This article and related content is provided on an” as is” basis. Sage makes no representations or warranties of any kind, express or implied, about the completeness or accuracy of this article and related content. Use this guide to build a solid, efficient financial structure into your business plan. Lost Sheep’s accountant sends management accounts every month, allowing Wilson to make changes quickly when needed. Wilson says the chief benefit of using an accountant is in saving him time.

how to do coffee shop accounting

ExamplePayroll Software

Once you’ve successfully opened your coffee shop, it’s important to stay on top of things to manage your business effectively. Then you’ll need to find a location, figure out start-up costs, and find suppliers. In this case, you’ll want a shop that caters to food and beverage. You’ll likely want a space with a kitchen and room for tables and chairs. A shift supervisor is a good idea if you need to cover some simple managerial tasks when you can’t be in the shop yourself. Shift supervisors are typically expert baristas who take on tasks like managing cash drawers and delegating tasks to other hourly employees.

Understanding Your Coffee Shop Monthly Expenses

  • If you need a coffee shop accounting software program that makes it easy to send invoices, Freshbooks is the way to go.
  • These elements include hiring, training, proper delegation of responsibilities, building and maintaining a positive work culture free of sexual harassment, and chances to display your creativity.
  • We also have in-depth knowledge of the complicated federal, state and sales tax laws.
  • Lots of small businesses generate healthy profits and lots of large conglomerates don’t make any money at all.
  • Learn more about different types of legal entities for your business in our guide to LLC vs S-Corp vs C-Corp.
  • Receipt Bank will scan your invoices and receipts, extracting the information you need – like supplier names, dates and values – with a fairly high level of accuracy.

Data integration ensures that information syncs across your various platforms, eliminating the need to manually enter data from your POS after your coffee shop closes for the day. Plus, syncing data ensures a level of accuracy which is simply not possible when tasks are performed manually. Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

See our guides to the best small business bank accounts and top-recommended free business checking accounts to find the best bank for your business. If you struggle with various aspects of creating your business plan—such as coming up with sound financial projections—contact your local SBDC as they can help with this, too. If neither of these reasons is relevant to your business, you’re better off buying pre-roasted beans from a wholesale roaster. You can always start by buying roasted beans from a wholesaler and build an in-house roasting operation as your business grows.

Forecast Expenses

how to do coffee shop accounting

It’s worth segregating rent and rates from other business costs that need your attention. It’s not without it’s flaws, but after more than a decade of experience with lots of accounting systems it’s comfortably the best system I have ever used. It’s scalable and links up to lots of other tools to make your accounting-life easier.


You can store invoices electronically, so there’s no need to hold onto original copies. The delivery note can be matched against coffee shop accounting the invoice so you know which invoices to pay. Stripe are not the cheapest, but their integrations are usually very good.

How to Start a Coffee Shop in 11 Steps

how to do coffee shop accounting

If you already understand payroll or are willing to learn more, then BrightPay is a great option. As an employer, you’ll deduct income tax and national insurance from your employee’s gross pay. Building a great team is one of the great challenges of running a highly successful cafe or restaurant. It’s easy to be overwhelmed by the sheer volume of invoices that a single restaurant or cafe will receive.

Creating a Coffee Shop Floor Plan: Examples + Tips

Place your first orders at least two weeks ahead of your opening date so you can get a sense of all the logistics involved. Larger suppliers may only deliver to your area once a week, so you’ll need to plan ahead to ensure you never run out of stock. Staff training is another place your roasting partner or franchisor can be a big help. If you opted to open a coffee franchise, your franchisor will provide training materials and sometimes even send a training manager to assist with training your team.