--- title: FIXE Restaurant Bookkeeping Glossary - Get My FIXE description: Restaurant bookkeeping terminology can be confusing. Our glossary demystifies terms and acronyms you'll find when running your restaurant. --- [FIXE Communal Table](https://hub.getmyfixe.com/communal-table) # [FIXE Restaurant Bookkeeping Glossary - Get My FIXE](https://hub.getmyfixe.com/communal-table/fixe-restaurant-bookkeeping-glossary) Written by [FIXE](https://hub.getmyfixe.com/communal-table/author/fixe) | Apr 17, 2024, 9:03:14 PM ## Restaurant bookkeeping terminology can be confusing. ### Our glossary demystifies terms and acronyms that you’ll commonly find when running your restaurant. - #### 3rd Party App platforms where customers can order delivery or pickup from restaurants on their phones or computers. DoorDash, GrubHub and UberEats are our 3 biggest platforms, with Ezcater gaining steam. - #### 4-4-5 Financial calendar with 4-week, 4-week and 5-week blocks each accounting quarter, versus monthly or 4 13-week accounting quarters. - #### Accrual Based/Basis Financials are based on the dates you incurred revenue and expenses, not based on the dates you paid for or received those expenses. - #### ACH Automated clearing house is the process of paying a vendor directly into their bank account vs a check or virtual credit. - #### A/P Accounts payable - #### AP Aging List of invoices or bills in QBO that are yet to be paid. - #### A/R Accounts receivable - #### BS Balance sheet - #### Cash Based/Basis Financials track revenue and expenses based on the dates money enters or leaves your bank account. - #### COGS Cost of Goods Sold – Cost of food and beverages associated with sales. This can also include paper supplies depending on the client. - #### Direct Operating Costs All costs outside of COGs and payroll associated with the day to day operations of running the restaurant. - #### ERP Enterprise resource planning - #### Expenses below the line All expense between NOI and net income - #### FEIN Federal employer identification number (also known as EIN) - #### GAAP Generally Accepted Accounted Principles. Financial Accounting Standards Board (FASB) is an independent NGO that establishes these accounting and financial reporting standards for public and private companies and non-profits. Governmental Accounting Standards Board (GASB) is a separate NGO that sets these standards for states and local governments. Both boards recommend forms of accrual accounting. - #### GL General ledger or PL detail (in QBO) - #### Gross Revenue/Gross Sales Revenue (less voids, sales taxes, tips and possible other service fees or deferred revenue such as gift card sales) before factoring in expenses. - #### Gross Profit Net revenue less COGs - #### General & Admin (G&A) Costs These are typically overhead costs, advertising, insurance, etc.,associated with running the restaurant. - #### Incurred You incur expenses and record them as money leaves your bank account. An accrued expense still gets incurred. - #### KPI Key performance indicators - #### Net Income NOI less taxes, interest, depreciation, amortization and typical items such as R&D, royalties and management fees. These items are more closely tied to a corporate office rather than the restaurant. - #### Net Operating Income (NOI) Prime profit less direct operating costs and administrative and general costs - #### Net Revenue/Income (in QBO) Gross revenue less discounts and 3rd party commissions (although this can be customized). - #### P&L Profit & loss statement - #### Prime Profit Gross profit less payroll costs - #### QBO Quickbooks Online - #### ROI Return on investment - #### State Tax ID # The name for this changes from state to state, but is needed to set up any payroll processing. Want these terms working for you instead of against you? Here's [how FIXE restaurant bookkeeping works](https://www.getmyfixe.com/how-fixe-works/), in plain English. ## Explore the Communal Table by topic - [Choosing a Restaurant Bookkeeper](https://hub.getmyfixe.com/communal-table/choosing-a-restaurant-bookkeeper) - [Month-End Close](https://hub.getmyfixe.com/communal-table/restaurant-month-end-close) - [Reading Your P&L and Reports](https://hub.getmyfixe.com/communal-table/restaurant-pl-and-reports) - [Delivery Apps and Deposits](https://hub.getmyfixe.com/communal-table/delivery-app-reconciliation) - [Payroll and Tips](https://hub.getmyfixe.com/communal-table/restaurant-payroll-and-tips) - [Cleanup and Tax Season](https://hub.getmyfixe.com/communal-table/restaurant-cleanup-and-tax-season) - [Tech Stack and AP Software](https://hub.getmyfixe.com/communal-table/restaurant-tech-stack) - [Costs, Inventory and Cash Flow](https://hub.getmyfixe.com/communal-table/restaurant-costs-and-cash-flow) Want a quick read on your own books? [Get your Restaurant Financial Health Score](https://hub.getmyfixe.com/health-score?src=blog). About the author Written by the [FIXE team](https://hub.getmyfixe.com/communal-table/author/fixe). FIXE does restaurant bookkeeping with the bookkeeper included, for 600+ restaurant locations. [Meet the team behind FIXE](https://www.getmyfixe.com/about/). 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