Month-end should tell you what happened in the business, not merely produce a folder of reports. For a DMV restaurant, bar, or cafe, that means tying daily sales to cash deposits, card settlements, payroll, vendor bills, inventory, and the balance sheet before relying on the profit-and-loss statement.
The close does not need to drag on for weeks. Set a cutoff for invoices and manager paperwork, assign each reconciliation to a specific person, and finish while the details are still familiar.
1. Reconcile POS sales to settlements and deposits
Start with the POS summary for every day and location. Confirm that gross sales, discounts, comps, voids, refunds, taxes, tips, service charges, gift card activity, and payment types add up correctly. Look for missing days, duplicate batches, unusual voids, and transactions posted after close.
Trace card sales to processor settlement reports and bank deposits. The deposit will rarely equal gross card sales because processors may subtract fees, refunds, chargebacks, or other adjustments. A settlement schedule should show the batch total, deductions, net deposit, deposit date, and matching bank transaction. Keep unsettled batches in a clearing account rather than forcing them into revenue or fees.
Compare POS cash sales with deposit records after accounting for paid-outs, petty cash, and the cash retained in drawers. Investigate recurring overages or shortages.
2. Reconcile every bank and credit card account
Match each bank statement to the general ledger. Record fees, returned payments, interest, and transfers that have not been entered. Review old outstanding checks. They may represent duplicate entries, lost payments, or stale vendor balances.
Reconcile every business credit card through the statement date. Receipts should support the charges, and similar purchases should receive consistent coding. DMV operators may buy from broadline distributors, local suppliers, restaurant depots, and retail stores. Code the purchase based on what was bought, not merely the merchant.
Remember that a payment to the card company reduces a liability. It is not another expense.
3. Match delivery-platform activity
Delivery-platform deposits are net settlements, not sales. Reconcile each platform's order report to the POS or other sales record. Separate gross food and beverage sales, tax, tips, commissions, marketing charges, refunds, adjustments, and deposited cash.
Check that every expected payout arrived. Watch for orders recorded in both the POS and platform feed, which can double revenue. Deposits posted directly against sales can also hide commission expense.
Compare the effective fee for each platform with prior months. Promotions, refunds, advertising, or contract changes can alter the channel's economics even when order volume looks healthy.
4. Close payroll, tips, and related liabilities
Tie payroll registers to wage expense, employer payroll costs, benefit deductions, and cash withdrawals. Record payroll for days worked during the month in the proper period, even if payday falls in the following month.
Reconcile tips collected through the POS with tips paid through payroll, cash, or another payout system. Undistributed tips should remain a liability, not restaurant revenue. Review service charges separately because their accounting and payroll treatment may differ from voluntary tips.
Compare labor by department and week. One monthly percentage can conceal overtime, training hours, schedule creep, or an inefficient shift pattern. Restaurants serving office-heavy corridors may also see a very different labor picture on weekdays than on weekends.
5. Reconcile sales-tax and local tax payable
Tie taxable sales in the accounting records to the reports used for sales-tax filings. Reconcile taxes collected, payments made, and the ending payable balance.
If the restaurant is subject to a local meals tax or another locality-specific charge, track that liability separately. Do not treat collected tax as revenue or the tax payment as an operating expense.
Investigate differences between the POS tax report and the ledger before filing or paying. Taxability, filing frequency, and local requirements depend on the business and jurisdiction. Confirm them with the appropriate Virginia or local authority or a qualified adviser.
6. Capture vendor invoices and review accounts payable
Enter invoices for goods or services received by month-end, even when payment is due later. Ask managers to submit invoices, credit memos, and statements by a firm cutoff.
Compare vendor statements with the accounts payable ledger. Look for missing bills, duplicate entries, unapplied credits, and payments that the vendor has not credited.
Review the aging report with cash needs in mind. Which invoices are overdue? Are bills being paid early while cash is tight? Are disputed charges documented? A clean aging report gives the owner a realistic view of upcoming obligations.
7. Count inventory and calculate cost of goods sold
Count food, beer, wine, liquor, and any material retail inventory at month-end. Use the same timing, units of measure, and counting method each month. A case entered as one bottle or a pound entered as one package can distort cost of goods sold more than a modest supplier price change.
Calculate cost of goods sold using beginning inventory plus purchases minus ending inventory. Compare food and beverage categories separately.
Review waste, spills, staff meals, transfers, and significant price changes. If theoretical usage is available from recipes or the POS, compare it with actual usage. Start with the largest gaps rather than spending hours researching minor differences.
8. Reconcile gift cards and stored value
Gift card sales generally create a liability until redemption rather than immediate restaurant revenue. Tie cards sold and redeemed to the gift card system, POS, cash receipts, and general ledger. Include online sales and activity processed through separate providers.
Review manual adjustments, promotional cards, expired balances, and any proposed breakage entry with the accountant. Do not clear an old gift card balance simply because it has remained on the books. The accounting treatment should reflect applicable rules and the restaurant's redemption history.
9. Update loans, equipment, and fixed assets
Split loan payments between principal and interest using lender statements. Reconcile ending balances and record any new financing, merchant cash advance, equipment lease, or deferred payment arrangement.
Review larger purchases to determine whether they belong in repairs and supplies or on the fixed-asset schedule. Ovens, refrigeration, furniture, POS hardware, and leasehold work should not disappear inside a broad expense account. Record equipment that was sold, discarded, or replaced. A tax adviser should determine depreciation and tax treatment.
10. Compare the month with history and budget
After the reconciliations are complete, compare the month with the prior month, the same month last year, and the budget. Review both dollars and percentages.
Useful measures include net sales, covers, average check, comps, labor, food cost, beverage cost, occupancy costs, delivery fees, controllable expenses, and operating profit. Focus on the measures the restaurant can act on.
Calendar effects matter across the DMV. Federal holidays, school schedules, weather, patio season, tourism, and shifts in office attendance can change the sales mix. Explain material variances with operating facts, not a generic note that sales were "up" or costs were "high." Write down the reason while the manager still remembers it.
Questions for the owner's month-end review
Before closing the books, the owner and manager should ask:
- Did all cash, card, and delivery sales reach the bank?
- Which sales channels produced a worthwhile contribution after direct fees and labor demands?
- Were food, beverage, and labor costs consistent with menu pricing and staffing plans?
- Which voids, comps, discounts, refunds, or chargebacks need follow-up?
- What tax payments, payroll runs, vendor bills, debt payments, and equipment needs will use cash next month?
- Are any vendor, loan, gift card, payroll, or tax balances unreconciled?
- Which budget variance needs an operational response, and who owns that response?
- Can supporting records explain every major balance-sheet account?
Finish with a short action list. That might mean adjusting a schedule, correcting a menu price, pursuing a missing vendor credit, changing an ordering habit, or reserving cash for a known payment. Give each action an owner and a due date. Otherwise, the same problem is likely to return next month.
Advisory note: This checklist covers general bookkeeping and restaurant operations. It is not tax or legal advice. Filing, payroll, tip, gift card, and local tax requirements vary. Consult the appropriate government agencies and qualified tax or legal professionals about your restaurant's circumstances.