How to Choose a Restaurant Accountant: 7 Key Questions

Choosing a restaurant accountant is one of the most important financial decisions an independent operator can make. The right accountant can save you thousands of dollars a year through tax credits you didn't know existed, cleaner COGS tracking, and smarter advice. The wrong one will file your taxes correctly and miss everything else.

Here's how to find the right one — and the 7 questions to ask before you hire.

Why a Generic Accountant Often Falls Short

Any CPA can file a Schedule C. But restaurant accounting has quirks that most general accountants don't deal with day-to-day:

• Tip reporting and FICA tip credits — The FICA Tip Credit (Form 8846) can be worth thousands per year. Many general accountants don't know it exists or don't calculate it.
• Prime cost — Restaurant profitability is tracked through prime cost (food + labor), not just net income. An accountant who only looks at your profit line misses the main driver of your margins.
• COGS tracking — Your COGS accounts for beginning inventory, purchases, and ending inventory. Letting restaurants treat all purchases as COGS distorts your financials.
• Sales tax complexity — Food sales tax varies by state and by what you're selling. Restaurants get audited on this regularly.
• Comps and voids — How you handle comped meals and employee meals affects both your tax returns and food cost analysis.

What to Look For

• Restaurant-specific clients in their current portfolio — they should be able to name other restaurant clients
• Familiarity with your POS system (Toast, Square, Lightspeed)
• Experience with tip reporting and FICA credits
• Monthly close process — not just a year-end visit
• Proactive communication — do they call when something looks off?

The 7 Questions to Ask Before Hiring

1. "How many restaurant clients do you currently work with?"

You want above 5, ideally above 10. Fewer means restaurants are a side category for them.

2. "Are you familiar with the FICA Tip Credit (Form 8846)?"

If they hesitate, that's a red flag. A restaurant-savvy accountant brings this up proactively.

3. "How do you track COGS for restaurant clients?"

The right answer: beginning inventory + purchases − ending inventory, reviewed monthly. If they just use total purchases, they're distorting your numbers.

4. "What POS and accounting software do you work with?"

They should be comfortable with at least one major restaurant POS and QuickBooks Online or Xero on the accounting side.

5. "How do you handle sales tax for food and beverage?"

Many states tax prepared food, alcohol, and catering differently. Your accountant should have a clear answer for your state.

6. "What does your monthly service include?"

Minimum expectation: monthly P&L review, COGS reconciliation, and a quick written summary or call.

7. "Have you ever been through a restaurant audit?"

Sales tax and payroll audits happen. An accountant who has navigated one knows where risks are and how to document properly.

What to Expect to Pay

Service Level	Monthly Cost
Basic (tax return only)	$150–$300/month
Monthly bookkeeping + review	$400–$800/month
Full-service (bookkeeping, payroll, tax)	$800–$2,000/month

The FICA Tip Credit alone can be worth $5,000–$20,000+ annually for a mid-sized restaurant with tipped staff. An accountant who actually claims it more than pays for their fee.

Frequently Asked Questions

Do I need a CPA or can a bookkeeper handle restaurant accounting?

You likely need both. A bookkeeper handles day-to-day transaction categorization. A CPA handles tax strategy and returns. Many restaurant accountants package both.

How often should I meet with my restaurant accountant?

Monthly at minimum for a financial review. Quarterly for tax planning. Annually for tax filing. If you're only talking at tax time, you're leaving money on the table.

What's the FICA Tip Credit worth?

A restaurant with 15 tipped employees could claim $6,000–$15,000 in annual FICA Tip Credits. Run the calculation with your accountant.

Should I use a national accounting firm or a local one?

For independent restaurants, a local CPA with restaurant experience typically provides better personalized service than a large national firm.

What accounting software do most restaurants use?

QuickBooks Online is most common, followed by Xero. Both integrate with major POS systems.

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