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PricingService areasAll services →Accounting and Tax for Ontario Restaurants, Cafes and Food Businesses
HST on food, tips and payroll, POS and delivery-app reconciliation and monthly food and labour costs, handled by a CPA-led accounting firm that understands service hours.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 29 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario restaurants, cafes, bakeries, bars, food trucks, caterers, ghost kitchens and franchise operators. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle restaurant bookkeeping, HST, payroll with tips, and corporate and personal tax, and every return is reviewed by a CPA.
Restaurant margins are thin, so the numbers have to be right every month, not just at year-end. We give you food cost, labour cost and prime cost you can act on.
Restaurant tax and bookkeeping issues we handle
Rules, rates and thresholds change. We confirm the current figure for your situation on the call before relying on it.
HST on food and drinks
Restaurant meals and prepared food are taxable at 13% HST in Ontario, while many basic groceries are zero-rated. Bakeries, cafes and grocers with mixed sales need the right tax code on each item. Some items have specific rules, such as single-serving snacks and the size of the order.
Law: Excise Tax Act s.165(1) and 165(2) (GST and HST imposed); Excise Tax Act Schedule VI, Part III (zero-rated basic groceries).
Tips and gratuities
How tips are paid out changes the payroll rules. Controlled tips, where the employer decides how tips are shared, are generally pensionable and insurable and need CPP and EI deductions; direct tips generally don’t. Ontario’s Employment Standards Act limits what employers can withhold from tips and allows tip pooling only under set rules.
Law: Employment Standards Act, 2000 (Ontario) ss.14.2 and 14.4 (tips and tip pooling); Income Tax Act s.153(1) (source deductions).
Payroll, minimum wage and stat holidays
Ontario sets minimum wage and public holiday pay rules for restaurant staff; the separate liquor server rate was removed in 2022. We keep source deductions, vacation pay and T4s right, and check Employer Health Tax once payroll grows.
Law: Income Tax Act s.153(1) (source deductions); Employer Health Tax Act s.2.1(2) ($1,000,000 exemption for 2020 to 2028).
POS and delivery-app reconciliation
Delivery platforms pay out net of commissions, promotions and refunds, and how HST is handled depends on the platform and your agreement, so we check each one. We record gross sales, fees and tax separately so your sales and HST match your POS.
Cash sales
Cash has to be recorded as completely as card sales. Unreported cash is one of the most common reasons restaurants are reassessed. We set up a simple daily close that protects you, and keep the records the CRA expects for six years.
Law: Income Tax Act s.230(1) and 230(4) (books and records, six years); Excise Tax Act s.286(1) and 286(3) (records, six years); Income Tax Act s.231.1(1) (CRA audits).
Food cost and inventory
Monthly food and beverage cost percentages need opening and closing inventory. We help you set a count routine that fits your service schedule. At year-end, inventory is generally valued at the lower of cost and fair market value.
Equipment and leasehold improvements
Kitchen equipment is generally Class 8 (20%) for CCA, and leasehold improvements are Class 13, generally deducted straight-line over the lease term plus the first renewal period (minimum 5, maximum 40 years). Fit-out costs are often booked wrong, and landlord allowances need their own treatment.
Law: Income Tax Act s.20(1)(a) (capital cost allowance); Income Tax Regulations s.1100(1) and Schedule II (CCA classes); Income Tax Act s.12(1)(x) (inducements and assistance).
Meals, staff meals and entertainment
Food you serve customers is cost of sales. Business meals and entertainment are generally limited to 50%, while staff meals can be a taxable benefit in some cases. We set the right accounts so these aren’t mixed.
Incorporation, owner pay and a second location
Incorporated restaurants may get the small business rate on active income. We plan salary and dividends and model the cash needs of a second location or franchise before you sign a lease.
Law: Income Tax Act s.125(1) (small business deduction); Income Tax Act s.125(2) ($500,000 business limit).
Who we work with
- Full-service and quick-service restaurants
- Cafes, coffee shops and bakeries
- Bars and pubs
- Food trucks and caterers
- Ghost kitchens and delivery-only brands
- Franchise owners
Services for restaurants and food businesses
- Monthly restaurant bookkeeping with POS and delivery-app reconciliation, from $500/month (Scale); quarterly bookkeeping from $350/month (Growth). Bookkeeping Reviews of complex books start from $450 (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter.
- GST/HST returns, $150 per return.
- Payroll, including tips and vacation pay. Quoted after a free call (see payroll services).
- Corporate tax (T2), from $800, and personal tax (T1) from $110 (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Menu margins, labour cost and opening a second location (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with restaurants
- Free call. We ask about your POS, delivery apps, tips, staff and how far behind you are.
- Written price. You get the scope and price in writing before any work starts.
- Setup. POS and delivery apps mapped into QuickBooks Online or Xero, tax codes by item type and Dext for supplier bills.
- Monthly rhythm. Sales and payouts reconciled, food and labour cost reported, HST and payroll filed on time.
- Year-end. Inventory count, financial statements, T2 and T1, all reviewed by a CPA.
Why restaurants and food businesses choose T-Ledgers
- We know restaurant numbers. Food cost, labour cost, tips and delivery-app payouts are part of our normal monthly close.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA. Every return is reviewed by a CPA before it's filed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| Tips and payroll | Easy to get CPP and EI wrong | Varies | ✓Controlled and direct tips handled correctly |
| POS and delivery apps | Payouts booked as sales | Often at year-end only | ✓Gross sales, commissions and tax reconciled monthly |
| Food and labour cost | Rarely measured | Varies | ✓Monthly food, labour and prime cost |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Restaurants & Food
Yes. Meals and prepared food are generally taxable at 13% HST in Ontario.
Many basic groceries are, but snacks, single servings and prepared items often aren’t. Each item needs the right tax code in your POS.
It depends on the platform and your agreement. We check each one so HST isn’t missed or double-counted.
Yes, if you’re registered and they’re for your taxable sales. Keep supplier invoices with their HST number.
Controlled tips generally do; direct tips generally don’t. How tips are shared decides which applies.
Generally no. Ontario’s Employment Standards Act limits what employers can withhold from tips, and owners can share in a pool only in limited cases.
No. Ontario removed it in 2022, so servers get the general minimum wage.
Generally only on Ontario payroll above the exemption for eligible employers, currently $1 million.
Record them daily against your POS close. Unreported cash is a common reason restaurants are reassessed.
Monthly for food and beverage cost, and always at year-end.
Leasehold improvements are generally Class 13, spread over the lease term plus the first renewal. Equipment is usually Class 8 (20%).
POS reports, cash-out sheets, supplier invoices and payroll records for six years.
Often, for liability and tax reasons. We model owner pay and the small business rate on a free call.
Food costs are, but staff meals can be a taxable benefit in some cases. We set up the accounts correctly.
Tenant inducements are generally income or reduce the cost of the improvements. We record them so your write-offs are right.
Yes. Our Virtual CFO service models cash flow, labour and break-even before you sign.
Monthly bookkeeping starts from $500/month (quarterly bookkeeping from $350/month), catch-up from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books), GST/HST returns are $150 per return, corporate T2 returns start from $800 and personal T1 returns from $110. Payroll is quoted after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
Yes. We rebuild your sales, payouts and HST and file what’s overdue.
Before you sign the lease, so the structure, HST registration and payroll are set up right from day one.
Yes, by appointment at our Etobicoke or Mississauga office, or we can work entirely online.
Know your real food and labour costs every month
Book a free call about your restaurant’s HST, tips or monthly numbers. We reply within one business day; call 866-254-5368 and a real person answers 24/7.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 15, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Rates and thresholds change, so we link to the official sources for current figures.