Food and Beverage Accounting

1. Food and Beverage Accounting Accounting Controls used in the Food and Beverage Service

2. I. Importance of F&B Accounting Controls • Workplace theft is a big issue • Theft and fraud impacts the business financial strength • Check control and auditing procedures should be established • Cash handling policies and procedures should be established

3. II. Examples of Employee Theft • Cash sales • Inventory • Receiving procedures • Cash Drawer transactions

4. Examples of Customer Theft • Skipping bills • Issuing bad checks • Credit card fraud • Disputing a legitimate restaurant charge • Shop lifting

5. IV. The Only Solution: • Revenue and cash/check/credit card handling procedures must be in placed and practiced in the establishment.

6. V. Guest Check Controls • Prepare a procedure for Guest Check Control. Information in guest check should include: • Shift time, date, cashier name, meal period, outlet (if applicable) • Number of the check and server’s name • # of covers per check • Total # of guest checks • Method of payment used (excluding tip)

7. Prepare a Cover Report:

8. Staff control policy: Accountability of personnel: - # of people handling guest checks - frequency of manager’s review of cover reports

9. VI. Cash Handling Controls • House Bank • Server banking • Cashier Banking

10. Responsibilities of Cash Handlers • Ensure correct charges are posted on guest checks • Ensure change given is correct • Training on detecting and reporting counterfeit bills • Deposit daily receipts at the end of each employee’s shift • Properly document and deposit cash variances (overages and shortages)

11. VII. Check Handling Controls • All check should be approved by a manager before acceptance. • Check for correct information in the check • Request for an ID to confirm guest’s identity • Cashier’s initials should be written at the back of the check • All checks should be made payable to the establishment only

12. VIII. Credit Card Handling Controls • Cashier should verify information on the credit card first before processing payment • Credit card payment should have an approval code, a signature and an imprint of the credit card on the guest receipt

13. Information required to process credit card payments: • Credit card number and expiration date • Card holder’s name, billing address and phone number • Total amount of sale (approved prior to processing) • Approval code

14. IX. Policy in case of Staff Negligence • Negligence – failure to perform properly, especially through carelessness • Policies may include: • Employee becomes responsible for the amount of money lost due to negligence • Employee is subjected to written warning • Employee may be subjected to a disciplinary action from the management • Employee may be subjected to termination due to dishonesty