Restaurant Specific Chart of Revenue & Expense Accounts and Coding Guide

A chart of accounts is a written classification of a company's accounts. The accounts are typically grouped by type and in the order of their appearance
on the company's financial statements and internal management reports. The chart of accounts helps to organize the accounting records, and, when
combined with a guide for proper coding, contributes to the consistent reporting of similar transactions and to the proper presentation of information on
financials and reports.

Typically, each group of accounts is assigned a numerical sequence, and the individual accounts within the group are given a number. Gaps are left
between the numbers so that additional accounts may be added as the business grows. With some accounting software, account numbers are not
required; however they are included here for purposes of illustration.

Several resources were used in designing this chart of accounts. All sources are consistent with the recommendations contained in the National
Restaurant Association's all time best selling publication: A Uniform System of Accounts for Restaurants. The accounts listed below will facilitate
the preparation of financial information that can be compared, in a meaningful way, against averages for the industry.

This chart of accounts is, by design, extensive. This will facilitate a careful analysis of the financial side of a restaurant's operations even if expensive
point-of-sale software is not used. It should be realized that, for instance, to track food costs as indicated by accounts numbered 4005 through 4040,
requires the coding of supplier invoices accordingly. Accounts that are not applicable to your operation can be omitted and then added later if the nature
of your business changes.

Resources used were as follows:

A. A Uniform System of Accounts for Restaurants. Published by the National Restaurant Association; Washington, D.C.
B. Guide to Restaurants and Bars. Published by Practioner's Publishing Company; Fort Worth, Texas.
C. Restaurant Startup & Growth magazine. Published by RS&G Distributor, LLC; Parkville, Missouri. Barry K. Shuster, editor.
D. RestaurantOwner.com www.restaurantowner.com. Jim Laube, editor.
E. Financial Accounting. Published by Worth Publishers, Inc.; New York, New York.
F. Intermediate Accounting. Published by John Wiley & Son's, Inc.; New York, York.

Account Sequence, Number, and Name Guidance for Coding (Classification)

3000 Sales Note: Sales amounts should not include sales tax
Food Sales
3005 Food Sales Breakfast
3010 Food Sales Breakfast - Takeout
3015 Beverage Sales Breakfast Coffee, tea, soda, juice, and other soft-drinks (non-alcoholic)
3020 Food Sales Lunch
3025 Food Sales Lunch - Takeout
3030 Beverage Sales Lunch Coffee, tea, soda, juice, and other soft-drinks (non-alcoholic)
3035 Food Sales Dinner
3040 Food Sales Dinner - Takeout
 3045 Beverage Sales Dinner Coffee, tea, soda, juice, and other soft-drinks (non-alcoholic)
Bar Sales
3050 Liquor Sales Lunch
3055 Beer Sales Lunch
3060 Wine Sales Lunch
3065 Liquor Sales Dinner
3070 Beer Sales Dinner
3075 Wine Sales Dinner
Merchandise Sales
3080 Merchandise Sales - Souvenirs T-shirts, glasses, caps, etc.
3085 Merchandise Sales - Cigars If significant or cost control is desired
3090 Merchandise Sales - Pull Tabs If significant or cost control is desired

4000 Cost of Sales

Food Costs
4005 Meat Beef, pork, veal, lamb, buffalo
4010 Poultry Chicken, turkey, duck
4015 Seafood Fish, crab, scallops, shrimp
4020 Produce Uncooked fruit and vegetables
4025 Dairy Products Cheese, milk, eggs, butter, cream
4030 Bakery Goods Bread, desserts, tortillas, rolls
Pasta, sugar, canned goods, salad dressings, dry beans, rice, cooking oil, mustard, ketchup,
4035 Food - Other mayonnaise, frozen fruits & vegetables, canned or powdered milk, spices
4040 Beverages Coffee, tea, soda, juice, and other soft-drinks (non-alcoholic)
Bar Costs
4045 Beer
4050 Liquor
4055 Wine
4060 Bar Perishables Lemons, limes, cherries, olives, bloody mary mix, drink mixes
Merchandise Costs
4065 Merchandise Costs - Souvenirs
4070 Merchandise Costs - Cigars
4075 Merchandise Costs - Pull Tabs
(Quick Service only) Napkins, sacks, cups, straws, disposable utensils. Non-QSR operations see
4080 Paper Supplies account number 4425 below.

Controllable Expenses

4100 Labor Costs

4105 Kitchen Labor Line cooks, prep cooks, expediters
4110 Kitchen Labor Training
 4115 Service Labor Servers, hosts and hostesses, bussers, service assistants, food runners, cashiers
4120 Service Labor Training
4125 Bar Labor Bartenders, bar backs
4130 Bar Labor Training
4135 Sanitation Labor Dishwashers, janitorial employees
4140 Sanitation Labor Training
4145 Administrative Labor Bookkeeper, administrative assistants, banquet sales
General Manager, assistant managers, kitchen manager, chef. If owner is involved in the day-to-
day operations of the restaurant, owner's compensation should be coded here. If not, see
4150 Management Labor account number 6055.

4200 Employee Benefits (or Fringe Benefits)

4205 Social Security Taxes Part of the fica tax (6.2% of eligible wages)
4210 Medicare Taxes Part of the fica tax (1.45% of all wages). May be combined with above as "Fica Taxes"
4215 State Unemployment Tax
4220 Federal Unemployment Tax
4225 Insurance - Worker's Compensation
4230 Employee Health and Disability Insurance
4235 Group Life Insurance
4240 Employee Retirement Plans
4245 Employee Meals
4250 Employee Education & Training
4255 Medical Expenses Cost of employee medical expenses paid by the business
4260 Management Meals
4265 Employee Parties Christmas or other holiday parties

4300 Direct Operating Expenses

4305 Uniforms Shirts, hats, aprons, jackets, shoes, plus uniform cleaning and repair
4310 Laundry Laundering of linens, towel service
Cloth napkins and tablecloths, or rental of same. May be combined with above as "Laundry &
4315 Linen Linen"
4320 Dry Cleaning Laundering of curtains and draperies, hangings, awnings, chair coverings
4325 Contract Cleaning Cleaning service for dining room, windows, floors, carpets, hoods, etc.
4330 Pest Control
Cut flowers, plants or plant service, artificial flowers, holiday decorations, bunting, aquariums, ice
4335 Flowers & Decorations carvings
4340 Auto & Truck Expense Expenses related to delivery vehicles except for repairs and maintenance
4345 Menu & Wine / Drink Lists Art work or design services, menu jackets, professional printing
Federal, state and municipal licenses related to restaurant or bar operations. Special permits,
4350 Licenses, Permits, & Fees inspection fees. Does not include sales, franchise or other taxes.
 Expenses not properly classified elsewhere such as chair, table, or equipment rental and special
4355 Banquet & Catering decorations
4360 Employee Transportation Employee mileage reimbursement, bus or taxi fare
Other items directly attributable to the service of the customer not classified elsewhere within
this heading, including reimbursement for lost or damaged articles, ice purchased for use in the
4365 Other Operating Expenses restaurant, snow removal

4400 Supplies
4405 China & Glassware Plates, drinking glasses, pitchers, cups and saucers, bowls, wine glasses
4410 Silverware Flatware, platters, trays, ladles, serving dishes

Knives, cleavers, mixing bowls and spoons, can openers, pots, pans, skillets, kettles, cutting
4415 Kitchen Utensils boards, strainers, measuring bowls and spoons, food warmer supplies, hickory or mesquite chips
Shot glasses, corkscrews, shakers, bottle stoppers, mixers, stir sticks, complimentary food such as
4420 Bar Supplies nuts and popcorn, beverage napkins

4425 Paper Supplies Paper cups and napkins, wax paper, foil, filter paper, straws, liners, "to-go" containers
4430 Restaurant Supplies Light bulbs, hand soap, paper towels, latex gloves, toilet paper, guest checks
Dish soap & rinsing agents, cleaning soaps and chemicals, mops and mop buckets, brooms, dust
4435 Cleaning Supplies cloths & rags, trash cans & liners, brushes, steel wool, bleach, polish
4440 Guest Supplies Matches, post cards, tooth picks, children's items, newspapers, free souvenirs

4500 Advertising, Sales Promotion, & Marketing

4505 Advertising - Newspapers & Magazines
4510 Advertising - Television & Radio
4515 Advertising - Sales Circulars & Direct Mail
4520 Advertising - Signage
4525 Advertising - Other
4530 Website Expenses
4535 Public Relations Team sponsorships, community projects
4540 Complimentary Food Complimentary food provided to the public
4545 Complimentary Beverages Complimentary beverages provided to the public
4550 Research & Development Meals and related travel to visit other restaurants, product development & testing
4555 Contributions & Donations

4600 Utilities
4605 Electric
4610 Gas
4615 Water & Sewer
4620 Trash & Waste Removal
4700 Repairs & Maintenance Include the cost of maintenance contracts within each R & M category below

4705 R & M - Restaurant Equipment Repairs to kitchen & dish room equipment, walk-in coolers, refrigerators, ice machines
4710 R & M - Furniture & Fixtures Repairs to tables, chairs, carpets, upholstering, and mending curtains and drapes
Repairs to floors, heating & air conditioning, structural components, plumbing, painting,
4715 R & M - Building plastering
4720 R & M - Office Equipment Repairs to copiers, faxes, computers, phone systems
4725 R & M - Parking Lot Resurfacing, striping
4730 R & M - Auto and Truck
4735 Ground Maintenance Mowing, trimming, landscaping

4800 Music & Entertainment

4805 Cable / Satellite Television
4810 Musicians & Entertainers
4815 Musician / Entertainer Food & Beverage
4820 BMI, ASCAP, SESAC Royalties
4825 Piano Rental or Tuning
4830 Background Music Service Mood Media (formerly Muzak) or another similar provider

5000 Administrative & General

5005 Office Supplies
5010 Postage & Delivery
5015 Telephone Local, long distance, cell phones
5020 Internet
5025 Dues & Subscriptions
Employment practices liability, burglary, employee dishonesty, liquor liability, lost or damaged
5030 Insurance - General articles, fidelity bonds
5035 Insurance - Officer's Life If payable to the restaurant company
5040 Credit Card Fees
5045 Travel Expenses
5050 Cash Shortages / (Overages)
5055 Legal & Professional Fees
5060 Accounting Services Tax return preparation, services of outside CPA or bookkeeper
5065 Payroll Processing 3rd party payroll processor (Heartland Payroll, ADP, Paychex)
5070 Printing & Duplicating
5075 Security
5080 Armored Car
5085 Bank Fees & Charges
Expenses relating to the administrative function of the business not properly categorized
5085 Miscellaneous elsewhere within this heading.
 Non-Controllable Expenses

5100 Occupancy Costs

5105 Rent Base and additional percentage rent, if applicable, on building
5110 Ground Rent If separately stated from rental on building
5115 Equipment Rental
5120 Real Estate Taxes Taxes assessed on buildings and land
5125 Personal Property Taxes Taxes assessed on equipment, automobiles & trucks. (Personal Property)
Insurance on building and contents (fire, storm earthquake, flood), and business interruption
5130 Insurance - Property & Casualty insurance
5135 Insurance - Officer's Life If payable to other shareholder's or partners
5140 Franchise Tax
5145 Annual Corporate Registration

5200 Depreciation & Amortization

5205 Depreciation - Restaurant Equipment
5210 Depreciation - Furniture & Fixtures
5215 Depreciation - Building
5220 Depreciation - Office Equipment
5225 Depreciation - Leasehold Improvements
5230 Depreciation - Parking Lot
5235 Depreciation - Auto and Truck
5240 Amortization - Organizational Costs
5245 Amortization - Goodwill

5300 Interest Expense

5305 Interest Expense - Mortgage Loan Secured by real estate
5310 Interest Expense - Line of Credit
5315 Interest Expense - Term Loan
5320 Interest Expense - Other

6000 Other Income / (Expense)

6005 Banquet Room Rentals
6010 ATM Income
6015 Vending & Telephone Commissions
6020 Compensation Deduction Sales tax and state income tax withholding timely remittance deduction
6025 Salvage & Waste Sales
6030 Cover Charges
6035 Menu Advertising
6040 Gain / (Loss) Sale of Fixed Assets
6045 Gift Certificate Sales / Redemptions
6050 Interest & Finance Charges Income
6055 Miscellaneous Income
6060 Owner's Compensation If not involved in the day-to-day operations of the restaurant
6065 Owner's Expenses If not involved in the day-to-day operations of the restaurant
6070 Corporate Overhead Allocation