Accountant for the restaurant industry

Running a restaurant in Quebec means dealing every day with net profit margins of just a few percentage points, food costs that fluctuate depending on suppliers, tips that must be reported, mandatory MEV billing, and a fast-paced team. Between the lunch service and closing time, bookkeeping can wait, but GST/QST remittances and source deductions certainly can’t.

That’s exactly why we’re offering you, for free, an accountant who already understands the realities of the restaurant industry: tip allocation, high-turnover payroll, perishable inventory, and the seasonal nature of outdoor dining and the holidays. We’ll find the right match for you, as many times as it takes, and we’ll be there for you every step of the way. When it comes to fees, we’re completely transparent with the Bankeo Fee Barometer. No obligation.

• Net margins are among the lowest in the industry, often ranging from 3% to 5%: every percentage point of variance in food costs directly impacts the bottom line.
• Food costs should be kept between 28% and 35% of sales, depending on the concept; when labour costs are included, the prime cost can quickly exceed 60% of revenue.
• Tips: reporting by employees, 8% allocation in Quebec, source deductions and tax forms to be adjusted accordingly.
• One of the highest staff turnover rates in the country: constant hiring, resignations, and employment records.
• Significant seasonality (outdoor dining, holidays, festivals) distorts cash flow and complicates tax payments.
• Perishable inventory must be closely tracked to ensure an accurate cost of goods sold.
• Choosing a business structure: incorporation, eligibility for the SBD (in Quebec, the 5,500-hour paid work requirement), and compensation via salary or dividends.

• Collection and remittance of GST (5%) and QST (9.975%) on meals; mandatory registration once taxable sales reach $30,000 (end of small supplier status).
• Revenu Québec Mandatory Invoicing: Invoices generated using the sales recording module (MEV or MEV-WEB) and provided to the customer.
• Recording and reporting of employee tips (Form TP-1019.4) and allocation of 8% of tip-eligible sales if the reported amounts are lower.
• Source deductions on reported or allocated wages AND tips: income tax, QPP, QPIP, employment insurance, HSF, and CNESST.
• Year-end forms: T4 (CRA) and RL-1 (Revenu Québec) with sections for tips received and allocated.
• Industry-specific licenses and taxes: MAPAQ license, RACJ liquor license, and a specific tax on alcoholic beverages.
• T2 (federal) and CO-17 (Quebec) tax returns if the restaurant is incorporated, including a year-end inventory of food and beverages.

Can an accountant really help me with tips and payroll? Yes. An accountant experienced in the restaurant industry sets up the tip register (TP-1019.4), applies the 8% allocation required in Quebec, and calculates source deductions on reported wages and tips. The result: compliant T4 forms and RL-1 slips, and no unpleasant surprises from the CRA or Revenu Québec.

My profit margins are tight, is it worth the cost? Yes, and that’s often where the biggest returns come from. According to the Bankeo Fee Barometer, the median for this sector is around $2,250 per year. An accountant who tracks your food costs, tips, and GST/QST rebates will quickly spot discrepancies that cost more than their fees. And the Bankeo matching service is free.

How much does a restaurant accountant cost? According to the Bankeo Fee Barometer, based on 1,248 real-world cases (2024-2026), the median fee for this sector is around $2,250 per year. The cost varies depending on whether you’re a corporation or a self-employed individual, the volume of transactions, and the complexity of payroll. Bankeo’s matching service is free: you pay your accountant directly.

How can I switch accounting firms for my restaurant without any stress? It’s simpler than you think. You tell us what’s not adding up, we’ll introduce you to an accountant who specializes in the restaurant industry, and the transfer of your records (financial statements, tip ledgers, access to the POS system) is handled directly between professionals, ideally outside of tax season. The matching service is free, and we’ll support you until everything is running smoothly.

Local or Remote Bookkeeper for a Restaurant? Both work very well. With a cloud-based POS system, digitized payroll and bank statements, a remote accountant can track your numbers in real time; a local accountant can be a plus if you want someone to come out to the restaurant. The real deciding factor is experience in the restaurant industry: tips, net sales, and food costs. Bankeo offers the right match in both formats.

Will mandatory invoicing (MEV-WEB) change my accounting practices? Yes, in a good way. Sales recorded in MEV or MEV-WEB must match your bookkeeping and your GST/QST remittances: any discrepancy will draw the attention of Revenu Québec. An accountant familiar with the industry will reconcile the MEV reports with your cash register and bank deposits, ensuring your records remain solid in the event of an audit.