Most restaurant accounting problems are not complicated. They are small tasks that were skipped for a few months until nobody could explain the numbers. A fixed monthly checklist prevents that.
Use the list below as your month-end routine. It works for a single cafeteria, a multi-branch restaurant group or a cloud kitchen running several brands.
1. Collect the documents
- Daily POS sales and Z reports, split by payment type and channel.
- All supplier tax invoices and delivery notes, plus monthly supplier statements.
- Delivery platform settlement statements for every app you sell on.
- Bank statements and card machine settlement reports.
- Petty cash vouchers with receipts.
- Payroll sheet, overtime and WPS salary transfer records.
- Rent, utility, licence and other expense invoices.
2. Reconcile sales and cash
- Match POS cash sales with cash deposited, after petty cash payouts.
- Match POS card sales with card settlements received in the bank.
- Match delivery-app sales in the POS with each platform statement.
- Investigate voids, refunds and discounts above your normal level.
Example: card settlement reconciliation
The figures below are hypothetical, but the method applies to any bank.
| Item | AED |
|---|
| Card sales in the POS for the month | 120,000 |
| Card settlements credited to the bank | 116,900 |
| Difference to explain | 3,100 |
| Merchant fees shown on the bank statement | 2,400 |
| Last two days of sales settled next month | 700 |
| Unexplained | 0 |
The AED 2,400 is an expense that belongs in the P&L, and the AED 700 is money still receivable. If the difference had not reached zero, it could point to missed settlements, chargebacks or POS errors worth investigating.
3. Control purchases and payables
- Record every supplier invoice in the month it relates to.
- Agree your records with each supplier statement and resolve differences.
- Review supplier ageing so nothing important falls overdue.
- Check unit prices against the previous month to spot increases.
4. Count stock and calculate food cost
- Do a physical closing stock count on the last day of the month.
- Calculate food cost as opening stock plus purchases minus closing stock.
- Compare the result with last month and with your costed menu.
5. Review VAT and tax
- Confirm output VAT on sales at the standard 5% rate.
- Keep valid tax invoices for every input VAT you plan to recover.
- VAT returns and payments are generally due within 28 days after the end of each tax period; note your dates.
- Track profit against the UAE Corporate Tax rules: 9% on taxable income above AED 375,000.
- Store records safely; VAT records must be kept for at least five years.
6. Close and review
- Accrue costs that are known but not yet invoiced, such as utilities and quarterly rent.
- Produce the monthly P&L and balance sheet.
- Update each partner's capital and drawings position if you have partners.
- Write down three actions for next month based on the numbers.
Key takeaways
- Work through the same checklist every month, in the same order.
- Every sales channel needs its own reconciliation.
- A physical stock count is essential for an accurate food cost.
- Know your VAT return dates and keep records for at least five years.
- Close the month within two weeks while the numbers still matter.
Frequently asked questions
How long must a UAE restaurant keep its accounting records?
VAT records must be kept for at least five years, and Corporate Tax rules also require records to be retained for a number of years. Keep invoices, POS reports, bank statements and contracts in an organised, retrievable form.
When should the monthly accounts be closed?
Aim to close the books within 10 to 15 days of month end. That is late enough to receive supplier statements and platform settlements, and early enough for the figures to still be useful for decisions.
Does Corporate Tax apply to small restaurants?
UAE Corporate Tax is charged at 9% on taxable income above AED 375,000, with 0% below that threshold, for financial years starting on or after 1 June 2023. Registration and filing obligations can apply even when no tax is payable, so confirm your position with an adviser.
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This article is general guidance for UAE F&B businesses, not tax or legal advice. Speak to a qualified adviser about your own situation.