Chart of accounts guide for restaurants and retail shops

A good chart of accounts for a restaurant or shop is simple: assets, liabilities, equity, revenue and expenses, with enough detail for sales, payment methods, VAT and inventory. The goal is that every sale posts a correct entry with no manual work.

Core accounts you need

Assets: cash per branch, bank, a card-clearing account until settlement, and inventory.

Liabilities: suppliers and VAT payable.

Revenue: sales split by branch or channel (dine-in, takeaway, delivery) if you analyse them.

Expenses: cost of goods sold, salaries, rent, payment and delivery fees.

Steps to build it

1Start from a template and avoid too many sub-accounts early.
2Separate cash and inventory per branch to see each branch's performance.
3Use a card-clearing account, then settle when funds reach the bank.
4Map each POS payment method and tax type to its account.
5Review the trial balance monthly before preparing the VAT return.

Advice for CFOs

A simple chart with correct mapping beats a detailed one fixed by hand every month. Confirm requirements with your chartered accountant.