Restaurants
Accounting for Restaurants
Financial Management for Food Businesses
Restaurants registered for GST/HST/PST compliance must file returns regularly — and tip income, gratuities, and alcohol sales all have specific CRA reporting requirements that must be handled correctly.
Restaurant Tax Rules
Key Tax Obligations for Restaurant Owners
01
GST/HST Applies to Most Restaurant Sales
02
Tip & Gratuity Reporting is Required
Tips received by employees must be reported as income — both controlled and direct tips have specific CRA reporting rules.
03
Payroll Compliance is Complex
With multiple employees, varying hours, and tips — restaurant payroll requires careful management to stay CRA compliant.
04
WCB Registration is Required for BC Employers
05
Food vs Alcohol Tax Rules Differ
Basic groceries are zero-rated, but prepared food and alcohol have different GST/HST rules — proper classification is essential.
06
Accurate PST Prevents CRA Issues
Restaurant Deductions
Eligible Deductions for Restaurants
Food & Beverage Costs
All ingredients, food supplies, and beverages purchased for resale are deductible business expenses.
Employee Wages & Benefits
All employee wages, salaries, and eligible benefits paid to restaurant staff are fully deductible.
Rent & Occupancy Costs
Restaurant rent, property taxes, and related occupancy expenses are deductible against your business income.
Kitchen Equipment & Repairs
Commercial kitchen equipment, appliances, and repair costs are deductible — larger items through CCA depreciation.
Utilities & Operating Costs
Hydro, gas, water, internet, and other operating utilities directly related to the restaurant are deductible.
Marketing & Advertising
Costs for menus, signage, social media ads, and promotional materials are deductible business expenses.
Restaurant Records
Records Every Restaurant Must Maintain
Total Sales & Revenue Records
Payroll Records & Employee T4s
All Supplier & Expense Receipts
GST/HST Returns & Registration
ADL for Restaurant Owners
Accounting Services for Restaurants
Bookkeeping
We record and organize all your daily sales, expenses, and transactions — keeping your books clean and CRA-ready.
Payroll
We manage wages, tips, deductions, and CRA remittances for all your staff — accurate and on time every pay cycle.
GST/HST Filings
We calculate and file your GST/HST returns accurately — ensuring proper reporting of food, beverage, and alcohol sales.
WCB Filings
We handle your WorkSafeBC registration, payroll reporting, and annual WCB filings for full compliance.
Corporate Taxes
If your restaurant is incorporated, we prepare and file your annual T2 corporate tax return with full CRA compliance.
CRA Audits / Reviews
Received a CRA notice? We represent you professionally — preparing all documents and responding on your behalf.