Is it necessary to report/record wastage in the accounts or is this purely helpful for the operation as a side record in order to inprove stock control and purchasing? Wastage is of course already reported in the accounts under C.O.S so from an analysis point of view I can see it being helpful to keep such a record, but should there be a separate line - i.e., credit purchases and debit waste (probably another category within C.O.S/Purchases)??
I ran my own restaurant for 7 years and never recorded wastage separatey in the accounts (as you correctly say it is already included in COS), but kept a separate record of it for my own analysis purposes. I think it may depend on each restaurateur and what information they require.
Hi ya'll, my buddy wrote down these five tips in this small article, i think its rather funny and might come in handy, but its in dutch, so if you want to read this, try google translate or learn dutch! ;D
Don't think the above post has anything to do with bookkeeping..lol Don't know what it says, but I just copied and pasted the first paragraph into AltaVista Babelfish translation site and I reckon the result would be funnier than the actual thing!
-- Edited by Stardoe on Thursday 2nd of December 2010 05:25:18 PM
You are only providing a very simple set of statutory accounts to HMRC unless you/you're client are in the medium to large enterprise category so you CAN provide an additional wastage expense but it's by no means required by HMRC
