--- title: "Restaurant Accountant in London, Ontario: Tips and Food Cost" url: https://www.everstonecpa.com/restaurant-accountant-london-ontario description: "CPA for London, Ontario restaurants and bars: daily POS reconciliation, tip payroll, food cost and 13% HST on meals, at a fixed monthly fee. Get a quote." type: service-in-a-city updated: 2026-10-02 summary: "A London, Ontario restaurant has to reconcile its POS to its deposits every day and run tips through payroll according to who controls them. It also has to watch food and beverage cost as a percentage of sales, and charge 13% HST on nearly everything on the menu. EverStone handles the books, payroll, HST and corporate return at a fixed fee agreed up front." faq_count: 10 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Accountant in London](https://www.everstonecpa.com/accountant-london-ontario) Restaurants Restaurants & hospitality · London, Ontario # Restaurant accountant in *London, Ontario* From the bars and patios of Richmond Row to family restaurants in Byron and roadside diners off the 401, London, Ontario kitchens run on thin margins, large payrolls and a lot of small transactions. EverStone keeps the books, payroll and tax for [London restaurants](https://www.everstonecpa.com/accountant-london-ontario) remotely, at a fixed monthly fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** A London, Ontario restaurant has to reconcile its POS to its deposits every day and run tips through payroll according to who controls them. It also has to watch food and beverage cost as a percentage of sales, and charge 13% HST on nearly everything on the menu. EverStone handles the books, payroll, HST and corporate return at a fixed fee agreed up front. Published fees start at $325 a month for bookkeeping and $125 for a personal return. ## Food cost is the number that decides the year A full restaurant can still lose money if food and beverage costs drift a few points. Catching it means coding supplier invoices to food, beverage and liquor separately, counting the walk-in, bar and dry storage regularly, and calculating cost percentage each period. When numbers move, the books should show whether it was prices, portions, waste or theft. The year-end count also moves taxable income, so it is done carefully on the last night of the year. ## Tips, payroll and who controls them How tips are handled decides their tax. Controlled tips — card tips paid through payroll, or a pool the business divides — carry income tax, CPP and EI deductions and appear on the T4. Direct tips from customer to server skip payroll, but the server still reports them. Ontario’s Employment Standards Act also limits what an employer may withhold or share. Get the setup right once to avoid a later payroll audit finding. [Tip reporting and payroll](https://www.everstonecpa.com/blog/restaurant-tip-reporting-payroll-canada) covers the detail. ## POS, deposits and the daily reconciliation The POS shows what sold; the bank shows what arrived: card batches a day or two later, cash when deposited, delivery payouts net of commission a week later. Daily reconciling catches a short deposit or missed batch while the shift is remembered. Record delivery sales at full menu price with commission as an expense so sales, HST and margins are right. A cash-over-and-short account reveals patterns. ## HST on meals and what is on the menu Meals and drinks carry 13% HST, and HST paid on taxable supplies, equipment, rent, repairs and delivery commissions returns as input tax credits; many groceries are zero-rated, with nothing to claim. See [input tax credits](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide). A café or bakery with takeaway sales must check each item, since treatment varies by item and how it is sold. A busy room can pass $1.5 million sooner than expected, moving HST filing to quarterly. ## Leaseholds, equipment and the renovation A fit-out is often the owner’s largest cheque. Leasehold improvements are written off over the lease term, kitchen equipment has its own capital cost allowance class, and small items may qualify as small tools. A renovation or move leaves the old improvements’ unclaimed balance to deal with. Split the contractor’s invoice into parts at build time. ## Campus terms, patio season and cash flow London’s restaurant year has its own shape: when Western and Fanshawe students leave in late spring, rooms near campus and downtown go quiet as patios elsewhere fill. Rent, loans and HST do not follow that curve. A monthly cash view against fixed obligations makes slow months predictable, and lenders ask for it before a second location. See [cash flow management](https://www.everstonecpa.com/cash-flow-management). ## What EverStone handles for you One CPA and one fixed fee. Monthly bookkeeping starts at $325 a month with the HST return included; see [what it costs](https://www.everstonecpa.com/pricing) for the rest. - Daily POS, deposit and delivery app reconciliation - Food, beverage and liquor cost reported each period - Payroll with tips handled correctly, remittances and T4s - HST returns with every input tax credit claimed - Leasehold and equipment schedules - T2 corporate return and year-end statements About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a restaurant has to get right What a restaurant has to get right The items that decide a hospitality year-end — for a business operating in London, Ontario | Item | Why it matters | | Tips | Who controls them decides whether they run through payroll | | Food and beverage cost | The percentage the whole operation is managed against | | Daily reconciliation | POS, card batches, cash and delivery payouts matched every day | | Payroll | High headcount and turnover make remittances and T4s the heaviest admin | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Restaurant and hospitality accounting](https://www.everstonecpa.com/restaurant-hospitality-accounting). General information, not advice. ## Remote restaurant accounting EverStone is a fully virtual, one-CPA firm serving London restaurants online. **There is no London office and no local staff.** Meetings are by video or phone before service, and POS reports and invoices arrive by secure upload or from your systems. Common questions ## London accounting for restaurants and hospitality businesses FAQ **Do tips go through payroll?** Controlled tips, which the business collects and pays out, do, with deductions and on the T4. Direct tips handed to a server do not go through payroll, though the server reports them. [Ask about your case →](https://www.everstonecpa.com/quick-question) **How should delivery app sales be recorded?** At the full menu price, with the app’s commission as an expense and the HST on that commission claimed as a credit. Recording only the net payout understates sales and misstates HST. **How often should we count inventory?** At least monthly for a food cost figure you can act on, and always at year-end, when the count feeds straight into taxable income. **How are renovations written off?** Leasehold improvements are written off over the lease term, and equipment through its own capital cost allowance class. The build invoice should be split into its parts when it is paid. **We run two locations. How should the books work?** One set of books with each location tracked separately, so food cost, labour and profit can be compared. Whether each location needs its own corporation is a separate question about risk and the small business deduction. **What if the CRA reviews our cash sales?** Restaurants are reviewed more often than most businesses because so much is cash. Daily reconciliations, retained POS reports and a consistent over-and-short account are the evidence that reported sales are complete. Records are kept for six years. **Do you work with restaurants outside London?** Yes. Kitchens in St. Thomas, Strathroy, Woodstock and the lakeshore towns are served the same way, remotely, with calls booked around service. **Can you take over books that are behind?** Yes. We rebuild from the POS reports and bank statements, file any late HST returns oldest first, and then move to the monthly routine. **What does an accountant cost for a London restaurant business?** Nothing about a London address changes the fee. Monthly bookkeeping starts from $325 a month and a personal return from $125; a corporate return is quoted after we review your enquiry. A single question can go to a 45-minute Advice Call, a flat fee of $225 + GST. Every fee is fixed in writing first. [See the published fees](https://www.everstonecpa.com/pricing). **Do you work with businesses outside London itself?** Yes. Restaurants in St. Thomas, Strathroy, Woodstock and the rest of Middlesex County are served the same way as those in London, remotely and at the same fixed fees. ## Related services and local guides Nearby cities, the rest of what we do for London businesses, and the reference pages behind this one. [Payroll services in London](https://www.everstonecpa.com/payroll-services-london-ontario) [Restaurant accountant in Hamilton](https://www.everstonecpa.com/restaurant-accountant-hamilton) [Restaurant accountant in Toronto](https://www.everstonecpa.com/restaurant-accountant-toronto) [Restaurant & hospitality accounting](https://www.everstonecpa.com/restaurant-hospitality-accounting) [Accounting & CPA services in London](https://www.everstonecpa.com/accountant-london-ontario) [Bookkeeping in London](https://www.everstonecpa.com/bookkeeping-london-ontario) [Corporate tax (T2) in London](https://www.everstonecpa.com/corporate-tax-accountant-london-ontario) [Personal tax (T1) in London](https://www.everstonecpa.com/personal-tax-accountant-london-ontario) [Accountants across Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) [Contractor accounting in London](https://www.everstonecpa.com/contractor-accountant-london-ontario) [Farm accounting in London](https://www.everstonecpa.com/farm-accountant-london-ontario) [Cash vs accrual accounting](https://www.everstonecpa.com/blog/cash-vs-accrual-accounting-canada) [Restaurant accounting in Ottawa](https://www.everstonecpa.com/restaurant-accountant-ottawa) [Meals and entertainment deductions](https://www.everstonecpa.com/blog/meals-entertainment-deduction-50-percent-rule-canada) ### What clients say Rated 5.0 on Google across 21 client reviews. [Read all reviews](https://www.everstonecpa.com/reviews) ★★★★★ “…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.” Matt Hildebrandt Verified Google review ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. Verified Google review ### Starting fees Every fee is fixed in writing before any work begins. - **Monthly bookkeeping, HST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Corporate year-end and T2 return** fixed fee, quoted in writing - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) --- Source: https://www.everstonecpa.com/restaurant-accountant-london-ontario Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online