Running a restaurant, cafe, or cloud kitchen is exciting. Yet the numbers behind the scenes decide whether a concept lasts or fizzles. Proper F&B accounting gives owners control, shows where money leaks, and makes growth possible. This guide explains the essentials and also points to real UAE market facts so you get a grounded view of what matters locally. If you want help putting systems in place, SS &Co can help as the go-to partner and the best chartered accountant in Dubai for F&B businesse.
Why F&B accounting is imperative
Food and beverage is a low-margin, high-variation business. Small changes in food cost, labour, or waste quickly change profits. Sound F&B accounting turns daily chaos into clear actions. It shows whether a menu item is making money. It highlights which shift or outlet needs attention. It helps you plan for tax, VAT, and expansion. In the UAE, the market is sizeable and growing, so disciplined accounting is not optional. The UAE F&B sector had estimated revenues of USD 38.3 billion and was expected to grow at a 4.7% CAGR through 2028. These figures show both the scale and the opportunity for well-run outlets.
Revenue recognition and invoicing that actually works
Revenue in F&B is simple to say and tricky to record. Sales come through POS, delivery platforms, and events. Each channel has fees, discounts, and refunds. Good F&B accounting captures gross sales, platform commissions, service charges, and tips in separate lines. This separation prevents surprises when you reconcile bank deposits against POS reports. For VAT compliance and for neat financial statements, every sales channel must feed into the accounting system. If you run multiple outlets, consolidating these feeds avoids duplicated entries and missed income. The best chartered accountant in Dubai will help set up the right chart of accounts and automated feeds so month-end closes fast and clean.
Cost of goods sold
Food cost drives profitability. If your food cost jumps by a few percentage points, margins shrink quickly. Regular stock counts and recipe-level costing make F&B accounting meaningful. When you build recipes into your system, you can price items to secure a target gross margin. You should also track wastage and portion control. Waste is not just thrown food. It is spoilage, prep trimmings, over-portioning, and theft. Good F&B accounting measures waste trends and links them to shifts, suppliers, and storage conditions. This way managers can fix root causes rather than chase symptoms.
Inventory control and perishables
Perishables expire fast and require daily attention. Inventory valuation methods matter. Whether you use FIFO, weighted average, or another method, be consistent. Consequently, by connecting your counts directly to the point of sale (POS) you would be able to determine more quickly the existence of any discrepancies. In the UAE, technology adoption is rising; many players use cloud kitchens and AI tools for inventory efficiency. Integrating POS with inventory reduces manual counting and keeps your food cost realistic. If you need help choosing or integrating a system, a specialist F&B accounting adviser or the best chartered accountant in Dubai can guide the tech selection and the process.
Labour accounting
Payroll is one of the largest costs in F&B. Labour scheduling, overtime, gratuities, and benefits need clean accounting. High employee turnover results in inaccurate calculations of pension, visa, and end-of-service payments. However, accurate recording of working hours and unambiguous payroll policies lead to fewer conflicts. Besides, relating labor expenses to sales by shift gives a straightforward measure of productivity. You can then align staffing with demand, reducing idle labour on slow shifts and preventing service breakdowns when business spikes. A reliable accountant will ensure that payroll entries, payroll taxes, and statutory contributions are recorded correctly and reconciled.
Integration with delivery platforms and commissions
Third-party delivery platforms increase reach but reduce margins. Each platform has its fee structure and promotional mechanics. F&B accounting must separate full menu price, platform commissions, platform tips (if any), and marketing credits. Reconciling platform settlements with actual orders prevents errors. Similarly, any refunds or chargebacks should be tracked as negative sales with a reason code. The cleaner this part of your accounting, the better you can negotiate with platforms and assess whether to keep or drop a channel.
Tax, VAT, and regulatory compliance in the UAE
Tax rules change and compliance cannot be left to chance. VAT registration, proper invoice formats, and correct tax coding of items are mandatory. Clear accounting prevents fines and allows you to reclaim input VAT on eligible purchases. Given the UAE’s focus on digitalisation and events around foodtech, staying compliant is easier when your systems feed each invoice and expense into the accounting ledger automatically. Working with an adviser who understands both F&B operations and local tax rules is a smart way to stay compliant while freeing you to run the business. SS&Co positions itself to do exactly that as a practical partner and the best chartered accountant in Dubai to guide F&B owners.
KPIs that should be on your dashboard
The right KPIs in F&B accounting include gross margin by menu item, food cost percentage, labour cost percentage, daily cash variance, and table or delivery throughput. Track customer acquisition cost if you run heavy marketing campaigns. For cloud kitchens, monitor order fulfilment time and average order value. Benchmarks matter; for example, many successful operators aim for food cost between 28% and 35% and labour cost below 30% of sales. These ranges shift by concept and region, so compare against peers and against historical performance. Good accounting feeds these KPIs automatically and keeps management focused on improvement.
Technology, POS, and automation
Integrations play a crucial role in modern F&B accounting. All your POS, inventory, payroll, and bank systems should be connected to your accounting records so the data flows automatically. Automation eliminates human mistakes and accelerates the month-end. Today’s solutions include AI-assisted inventory forecasting and platform reconciliation tools. In Dubai and the wider UAE, investment in F&B tech is growing and cloud kitchens are scaling quickly, which makes automation even more relevant. In the selection of software tools, value should be considered for integration, vendor support and data export for audit purposes. The best chartered accountant in Dubai will often recommend systems that are practical, affordable, and proven in the local market.
Sustainability, traceability, and cost impact
Sustainability is both brand value and cost consideration. Responsible sourcing and waste reduction often reduce cost over time, even if they need upfront effort. Traceability adds a layer of accounting when you track supplier certifications, carbon-related costs, or packaging fees. Incorporating these items into your accounting gives a fuller picture of product cost and helps with investor conversations. As the market pushes toward greener practices, accounting will increasingly capture these non-traditional cost lines.
Closing the loop (monthly close and forecasting)
A disciplined monthly close in F&B accounting makes forecasting reliable. Reconcile POS to bank deposits, check platform settlements, adjust for inventory variances, and verify payroll and supplier payments. Forecasts built from clean history are actionable. They tell you when to hire, when to pause expansion, and when to reprice. Forecasting also informs working capital needs, which is crucial for growth.
How SS&Co helps F&B owners
SSCOGLOBAL designs accounting systems for food businesses. We build costing, connect POS and inventory, manage VAT and payroll, and produce simple dashboards that managers actually use. We also provide advisory on pricing, margin improvement, and system selection. If you are looking for a practical partner who knows the restaurant floor and the ledger, SS&Co can be that partner and the best chartered accountant in Dubai to work with. We lean on market insights, we use straightforward processes, and we keep reports readable so you can act fast.
Running an F&B business is rewarding and demanding. Good F&B accounting does not need to be complex. With clear processes, the right tools, and a trusted adviser, you can turn data into decisions and keep your focus where it belongs: delightful food and satisfied customers. If you want help building the right accounting setup, reach out to SS&Co. We bring experience, simple systems, and a practical approach that many owners prefer when working with the best chartered accountant in Dubai.
