(720) 333-7274 Mon–Thu 8–4, Fri 8–12 MT · Castle Rock, CO
Coffee Shops specialty

Coffee shop accounting that handles tips, beans, and retail.

Daily POS reconciliation, tip pool handling, retail bean accounting, and the food-cost reporting that tells you where margin actually lives.

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Coffee shop accounting is essentially restaurant accounting at smaller scale, with a few unique twists. Retail bean sales sit alongside drink revenue. Pastry COGS is volatile because supply often comes from a third-party bakery. Tips are typically declared and pooled. Get any of these wrong and your margin reporting is fiction.

We work with single-location specialty coffee shops, multi-location concepts, and roaster-cafés.

What we handle

  • Daily POS reconciliation from Square or Toast.
  • Tip handling through payroll, with FICA tip credit (Form 8846).
  • Retail bean revenue separated from drink revenue.
  • COGS by category — coffee, milk, food, paper, retail.
  • Inventory tracking for shops carrying meaningful bean stock.
Field note: the FICA tip credit

A coffee shop paying $85K in declared tips per year had never claimed the FICA Tip Credit. The recovery on amended returns: ~$6,500. Most coffee shops we onboard have never claimed it.

If / Then

If you have under 5 baristas, Square + Gusto + monthly bookkeeping works.
If you sell retail beans, retail revenue tracking is non-trivial.
If you scale past one location, R365 or similar starts to make sense.

The Bottom Line

Real margin per category, real tip handling, FICA credit captured.

From $450/month for single-location cafés.

Frequently asked questions

POS reconciliation?

Daily Z-report imported into QuickBooks. We reconcile variances at month-end.

Tip pool?

We track per shift and run pool distribution through payroll with declared tips on each W-2.

Sales tax?

Coffee/food prepared for immediate consumption is taxable; whole beans are typically taxable as well at state level. City rules vary.

Inventory?

For retail beans, we recommend monthly count and adjustment. Drink-side raw materials run periodic.

Reviewed by

Kali Gilliland · Founder & Lead Accountant

Kali Gilliland is the founder of TBA & Associates and has spent more than a decade serving small businesses across the Denver metro and Colorado Springs corridor. She handles everything from monthly bookkeeping to multi-state tax planning, with a long-term client roster that goes back 10+ years.

Ready for an accountant who picks up the phone?

Get a quote in under 24 hours. No long contracts, no jargon — just clean books and honest tax planning from a Denver-area firm trusted by small businesses for more than a decade.