Do any restaurateurs bother to keep track of bottle and keg deposits? Is it worth the hassle?

Since keg deposits have a high value (averaging $30) most restaurateurs keep an eye on these but practically no one bothers to watch the bottle deposits. A better question is “should these deposits be tracked?”

The answer is positively “yes”. Before answering the “why” it should be pointed out that it is a relatively easy process to track deposits by simply setting up a separate general ledger account and watching the balance. Each month there will be an increase or decrease. However, the change should be minor, and a theoretical cumulative balance should zero out in a perfect world. This would be a practical approach.

Now, why bother? If the deposits paid exceed the deposits credited, it could signify a problem beyond breakage. Is it possible not all sales are being rung up? What if the opposite took place (the credits exceeded the deposits paid)? All of us have heard at one time or another of a bartender who was selling his/her own product, usually liquor. This has also happened with beer.

Most importantly, a major psychological benefit derives from everyone knowing you are watching something as minor as deposits; you can imagine what is thought about your thoroughness in watching everything. This alone will have a significant dollar impact on your bottom line. We human beings are all pretty much the same. Knowing that we are being watched closely does make us more conscious of how we operate and we do have a tendency to be more careful.

The information given is provided for general, non-specific educational purposes only, and should not be relied upon as advice relating to your specific circumstances. For company-specific advice, consult directly with your tax advisor.

James Conniff is the Managing Partner at Bacall & Conniff, P.C., a full service CPA firm that provides industry specific accounting solutions for restaurateurs. Their services include: Weekly flash reports, Monthly financial statements, Web-accounting, Optional bookkeeping & payroll services, and Comprehensive tax & advisory services. They can be reached at 617-367-3250.

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