FIXE Restaurant Bookkeeping Glossary

Restaurant bookkeeping
terminology can be confusing.

Our glossary demystifies terms and acronyms that you’ll commonly find when running your restaurant.

  • 3rd Party App

    platforms where customers can order delivery or pickup from restaurants on their phones or computers. DoorDash, GrubHub and UberEats are our 3 biggest platforms, with Ezcater gaining steam.
  • 4-4-5

    Financial calendar with 4-week, 4-week and 5-week blocks each accounting quarter, versus monthly or 4 13-week accounting quarters.
  • Accrual Based/Basis

    Financials are based on the dates you incurred revenue and expenses, not based on the dates you paid for or received those expenses.
  • ACH

    Automated clearing house is the process of paying a vendor directly into their bank account vs a check or virtual credit.
  • A/P

    Accounts payable
  • AP Aging

    List of invoices or bills in QBO that are yet to be paid.
  • A/R

    Accounts receivable
  • BS

    Balance sheet
  • Cash Based/Basis

    Financials track revenue and expenses based on the dates money enters or leaves your bank account.
  • COGS

    Cost of Goods Sold – Cost of food and beverages associated with sales. This can also include paper supplies depending on the client.
  • Direct Operating Costs

    All costs outside of COGs and payroll associated with the day to day operations of running the restaurant.
  • ERP

    Enterprise resource planning
  • Expenses below the line

    All expense between NOI and net income
  • FEIN

    Federal employer identification number (also known as EIN)
  • GL

    General ledger or PL detail (in QBO)
  • Gross Revenue/Gross Sales

    Revenue (less voids, sales taxes, tips and possible other service fees or deferred revenue such as gift card sales) before factoring in expenses.
  • Gross Profit

    Net revenue less COGs
  • General & Admin (G&A) Costs

    These are typically overhead costs, advertising, insurance, etc.,associated with running the restaurant.
  • KPI

    Key performance indicators
  • Net Income

    NOI less taxes, interest, depreciation, amortization and typical items such as R&D, royalties and management fees. These items are more closely tied to a corporate office rather than the restaurant.
  • Net Operating Income (NOI)

    Prime profit less direct operating costs and administrative and general costs
  • Net Revenue/Income (in QBO)

    Gross revenue less discounts and 3rd party commissions (although this can be customized).
  • P&L

    Profit & loss statement
  • Prime Profit

    Gross profit less payroll costs
  • QBO

    Quickbooks Online
  • ROI

    Return on investment
  • State Tax ID #

    The name for this changes from state to state, but is needed to set up any payroll processing.