Bookkeeping and Accounting for Coffee Shops

You should track various expenses for your coffee shop such as the cost of raw materials (coffee beans, milk, sugar, baking ingredients etc), labor costs, rent or mortgage of your space, utilities, marketing and advertising expenses, equipment purchase and maintenance, licenses and permits, insurance, employee benefits, and supplies. You should also track any other incidental costs related to your business. This will ensure you have an accurate understanding of your business's financial health.

Seasonality can significantly impact your coffee shop's revenues, which in turn affects your financial forecasting and bookkeeping practices. For instance, you may see increased sales during colder months when people are more likely to purchase hot drinks. This fluctuation means that your forecasting needs to account for such seasonal changes to accurately predict your financial performance, manage cash flow, and plan for future growth.Your bookkeeping practices will also need to reflect these seasonal revenue changes. It involves recording higher revenues in certain months and lower revenues in others. Proper bookkeeping can enable you to identify seasonal trends more precisely, which will augment your forecasting accuracy and business decisions. Given the intricacies of managing seasonal businesses, having a professional bookkeeper could be invaluable in maintaining accurate records and ensuring robust financial management.

Some common tax deductions often overlooked in the coffee shop industry include:1. Equipment Depreciation: Expensive machinery like coffee machines, grinders, or refrigerators can be written off over their lifespans.2. Repairs and Maintenance: Any costs associated with maintaining and repairing your equipment can be deducted.3. Employee Expenses: Training costs, uniforms, meals, and any perks given can be deducted.4. Business Insurance: The premium you pay for your business insurance is fully deductible.5. Advertising and Marketing Costs: From social media ad campaigns to menu printing, these costs can be deducted.6. Accounting and Legal Fees: Professional services hired for accounting or legal matters can be tax deductible.7. Utilities: This encompasses electricity, water, and even wi-fi expenses.8. Interest on Business Loans: If you took a loan to start or expand your coffee shop, the interest paid on that loan is tax-deductible.9. Smallwares: Items such as dishes, silverware, glasses, and other serving equipment can be deducted.10. Green Initiatives: If your coffee shop is involved in any eco-friendly practices, you may be eligible to deduct those expenses. It's always recommended to consult with a professional bookkeeper to ensure you are maximizing your deductions while staying compliant with tax regulations.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.