Example of a Chart of Accounts for Cafés: A Step-by-Step Guide

How to Optimise Your Chart of Accounts for Cafés: A Step-by-Step Guide

Managing your café’s finances effectively begins with an organized chart of accounts (COA). This guide will help you streamline your financial management and ensure compliance with Australian accounting standards, regardless of your café’s size or location.

1. Assess Your Business Needs

• Identify Issues: Review your current COA to pinpoint problems such as lack of specificity or inadequate categories.

• Determine Requirements: Understand the types of expenses and revenues typical for cafés.

Set Up Your Chart of Accounts

1. Assets

• 1000 - Cash at Bank: Track cash held in your bank accounts.

• 1010 - Petty Cash: Record small cash transactions.

• 1100 - Accounts Receivable: Manage outstanding payments from customers.

• 1200 - Inventory: Track stock items, including:

  • 1210 - Coffee Beans

  • 1220 - Pastries

  • 1230 - Packaging Supplies

• 1300 - Prepaid Expenses: Record expenses paid in advance.

• 1400 - Equipment: Manage the cost of equipment and furniture, including:

  • 1410 - Coffee Machines

  • 1420 - Furniture

  • 1430 - Fixtures

2. Liabilities

• 2000 - Accounts Payable: Monitor money owed to suppliers.

• 2100 - GST Payable: Track GST owed to the Australian Taxation Office (ATO).

• 2200 - Loans Payable: Manage outstanding loan balances.

• 2300 - Payroll Liabilities: Record payroll-related liabilities.

3. Equity

• 3000 - Owner's Equity: Reflect the owner’s investment in the business.

• 3100 - Retained Earnings: Track accumulated profits not distributed to owners.

4. Income

• 4000 - Coffee Sales: Record income from coffee sales.

• 4010 - Pastry Sales: Track revenue from pastry sales.

• 4020 - Catering Income: Manage income from catering services.

• 4030 - Other Income: Include any other sources of income.

5. Expenses

• 5000 - Cost of Goods Sold: Track direct costs associated with goods sold, including:

  • 5010 - Coffee Beans

  • 5020 - Pastries

  • 5030 - Packaging Supplies

• 5100 - Rent: Record rent expenses for the café.

• 5200 - Utilities: Track utility costs, including:

  • 5210 - Electricity

  • 5220 - Water

  • 5230 - Gas

• 5300 - Wages: Manage employee wages.

• 5400 - Marketing and Advertising: Track costs related to promotions.

• 5500 - Supplies: Record general supply expenses.

• 5600 - Repairs and Maintenance: Track costs for repairs and maintenance.

• 5700 - Professional Fees: Record fees for professional services, including:

  • 5710 - Accounting

  • 5720 - Legal

6. Other

• 6000 - Depreciation Expense: Record depreciation on equipment and fixtures.

• 6100 - Interest Expense: Track interest on loans.

3. Implement and Monitor

• Update Financial Software: Input your new COA into your accounting software.

• Train Staff: Ensure your team understands the new COA and how to use it.

• Review Regularly: Periodically review and adjust your COA to meet your evolving business needs.

4. Ensure Compliance

• GST Reporting: Ensure GST payable and receivable are tracked accurately to comply with Australian tax laws.

• Consult a Professional: Consider consulting with an accountant to ensure your COA meets all regulatory requirements and optimizes financial reporting.

By following this guide, cafés across Australia can enhance their financial management, improve reporting accuracy, and ensure compliance with Australian accounting standards.