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Hospitality & Restaurants

Accounting for hospitality — restaurants, cafes, pubs, bars and hotels — a sector where margins are thin, staff turnover is high, cash and card mix daily, and the numbers must arrive weekly to be worth anything.

Hospitality is operationally the hardest sector we serve: GP margins moving with every supplier price and menu change, tips governed by tronc rules that went statutory in 2024, payrolls full of variable hours and student visas and auto-enrolment churn, VAT split across eat-in, takeaway and accommodation, and a failure rate that punishes anyone managing on last quarter's accounts.

Acumon runs hospitality accounting at operating tempo: weekly flash numbers where the business needs them, tronc and payroll done properly at scale, VAT treatments right across the menu, and margin reporting that catches the drift while the menu can still be reprinted.

Margins, Watched Weekly

Hospitality profit is made in percentage points: theoretical versus actual GP by category, wastage and shrinkage isolated instead of dissolved into 'cost of sales', labour percentage against covers, and menu engineering that prices dishes on their real costed contribution. We integrate your EPOS data with the accounting, set up weekly flash reporting — sales, GP, labour — and monthly management accounts that reconcile the flash to reality, so a drifting food cost is a fortnight's problem rather than a year-end autopsy.

Tips and Tronc, Done Legally

The Employment (Allocation of Tips) Act made fair, transparent tip allocation a legal duty: qualifying tips passed to workers in full by the end of the following month, a written policy, records workers can request. Run through a proper independent tronc, tips also escape National Insurance — worth thousands per year in a tipped operation — but the NI exemption depends on genuine troncmaster independence and correct payroll mechanics. We set up and run compliant tronc arrangements inside our payroll service, policy and records included.

Hospitality Payroll at Scale

Feeding and housing people generates the most operationally intense payrolls we run: variable hours and split shifts, high churn with mid-period starters and leavers, students and visa-hour limits, holiday pay on irregular hours done to the current law, NMW compliance where uniform and till-shortage deductions create technical breaches, and auto-enrolment churning with the workforce. Our CIPP-qualified team runs it weekly or fortnightly with the tronc integrated — payroll being the hospitality function that most repays doing properly.

VAT Across the Menu

Hospitality VAT is treatment-dense: standard-rated eat-in versus the cold takeaway zero-rating and its hot-food boundary tests, accommodation rules, deposits and no-shows, service charges (whose VAT and tip treatments differ by how they are levied), vouchers and delivery-platform commissions. Errors compound daily across thousands of transactions in both directions. We configure the EPOS treatments correctly once, then keep them right as the menu and the law move — and reclaim what past errors overpaid.

What You Get With Acumon

  • Weekly flash reporting: sales, GP and labour while you can still react
  • EPOS integrated with the accounts — one version of the numbers
  • Theoretical vs actual GP with wastage isolated and visible
  • Statutory-compliant tronc schemes run inside payroll, NI savings kept
  • High-churn payroll with holiday pay on irregular hours done to current law
  • NMW technical compliance — uniforms, deductions and unpaid time checked
  • VAT treatments configured right across eat-in, takeaway and rooms
  • Cashflow forecasting through the seasonality every operator knows

Why Acumon for Hospitality & Restaurants?

  • CIPP-qualified payroll team running high-volume hospitality payrolls
  • Statutory tronc schemes operated inside the payroll service
  • VAT specialists in-house, several previously with HMRC
  • All 90 of the firm's professionals are based in the UK

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.

Common Questions

Frequently Asked Questions

What are the tronc rules now, and are we compliant?
Two regimes stack: the Tips Act requires qualifying tips to reach workers in full, allocated fairly under a written policy, by the end of the month after receipt — with records workers can demand. Separately, NI exemption on tips requires allocation decisions by a genuinely independent troncmaster, not the employer, through correct payroll treatment. Many operations fail one or both quietly — employer-controlled allocations, tips funding card fees, no written policy. Getting it right is cheap; we audit your current arrangement and rebuild it compliantly where needed.
Why do my accounts show profit while the bank account disagrees?
Hospitality cash and profit diverge structurally: stock and supplier terms absorb cash, VAT collected sits in the bank until quarter-end and leaves in one draw, deposits arrive for events not yet delivered, and equipment purchases hit cash immediately but the P&L over years. An operator managing by bank balance makes predictably bad calls in both directions. The fix is short-horizon cashflow forecasting alongside the management accounts — thirteen weeks forward, updated weekly — which we build as standard for operators with tight cash cycles.
Is takeaway food really VAT-free?
Cold takeaway food is generally zero-rated; hot takeaway is standard-rated under tests (kept hot, sold to be eaten hot, and the case law around them) that produce famously fine distinctions; anything consumed on premises is standard-rated regardless. For a mixed operation the EPOS configuration is where compliance actually lives — every product coded correctly by channel — and errors run silently in both directions at scale. We configure it properly, spot-check it periodically, and pursue refunds where past coding overpaid.
Our margins have slipped and we can't see where. Can you help?
This is the diagnostic hospitality accounting exists for. Margin leaks localise fast once theoretical GP is computed properly: supplier price creep never passed to menu prices, portion drift, wastage untracked, till and stock shrinkage, or a sales mix quietly shifting toward low-margin dishes. We build the theoretical-versus-actual comparison by category, and the gap tells you where to look — kitchen, bar, purchasing or pricing. Operators usually recover several margin points within a quarter of seeing the numbers laid out this way.
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