Bookkeeping for Food Trucks: Mobile POS & Cash Tracking

Food Truck Finances: Mobile, Fast, and Surprisingly Complex

Running a food truck seems simpler than operating a restaurant - lower rent, smaller menu, fewer staff. But from a bookkeeping perspective, food trucks have their own unique challenges. You deal with cash and card transactions at different locations, variable daily revenue, perishable inventory, event bookings with different payment terms, and multiple council permits.

Getting your bookkeeping right means you always know whether your truck is actually making money - not just turning over cash.

Revenue Tracking

Food trucks typically generate revenue from three sources:

Daily Trading

Setting up at a regular spot (market, industrial estate, beach) and selling to walk-up customers. Revenue fluctuates based on weather, foot traffic, and competition.

Track daily revenue by:

• Location - Know which spots are most profitable
• Payment method - Cash versus card (important for reconciliation)
• Day of the week - Identify your best and worst trading days

Events and Catering

Festivals, corporate events, weddings, and private functions. These typically involve a booking fee or minimum spend, and the payment terms differ from daily trading.

For events:

• Record the deposit when received (as a liability if the event has not occurred)
• Record revenue on the event date
• Track event costs separately to measure profitability per event

Online Orders and Delivery

Some food trucks take pre-orders through social media, websites, or delivery platforms. If you use a delivery platform (Uber Eats, DoorDash), be aware that they deduct their commission before depositing funds. You need to record the gross sale, the commission expense, and the net deposit.

Cash Handling

Cash is still common at food trucks, and it creates bookkeeping challenges:

Count your float and takings daily - Start each day with a set float (say $200). At the end of trading, count your cash. The difference between your end-of-day cash and your float is your cash revenue.

Reconcile cash to POS reports - Your POS system records how much was tendered in cash. Compare this to your actual cash count. Small discrepancies are normal. Large or consistent discrepancies need investigation.

Bank cash regularly - Do not let large amounts of cash accumulate. Bank your takings daily or every few days at most.

Record cash purchases carefully - If you buy ingredients or supplies with cash from the till, record these transactions immediately. Keep receipts. Cash purchases that are not recorded disappear from your books and inflate your apparent profit.

Mobile POS Integration

A good POS system is essential for food truck bookkeeping. Look for:

• Cloud-based - So your data is backed up and accessible from anywhere
• Offline capability - You will trade in locations without reliable internet
• Bank feed integration - Card payments should flow through to your accounting software automatically
• Reporting - Daily sales summaries, product mix reports, and cash versus card breakdowns

Popular options for food trucks include Square, Lightspeed, and Kounta (now Lightspeed Restaurant). Whichever you choose, connect it to your accounting software so sales data flows through automatically.

Food Cost Management

Food cost is your biggest variable expense and the primary driver of profitability. Most food trucks should target a food cost percentage of 25-35% of revenue.

Tracking Food Costs

Record every purchase - Every trip to the supplier, every market run, every emergency ingredient buy. Use your phone to photograph receipts and upload them to your accounting software.

Calculate food cost percentage regularly - Food cost % = (Cost of food sold / Food revenue) x 100. If your food costs are creeping above 35%, you need to either raise prices, reduce portion sizes, or find cheaper suppliers.

Monitor waste - Perishable inventory means waste is inevitable, but it should be minimised. Track what you throw away and adjust your ordering accordingly.

Inventory Management

Food truck inventory turns over quickly, which is both a blessing and a curse. You do not carry large amounts of stock, but you need to order frequently and accurately.

Do a simple stock count at the start and end of each trading day. This helps you calculate your actual food cost and identify any waste or theft.

Use the FIFO method (first in, first out) for perishable ingredients. Rotate stock so older items are used first.

Permits, Licences, and Fees

Food trucks need various permits and licences that should be tracked as business expenses:

• Council trading permits - Often per-location and may vary in cost
• Food safety registration - Annual registration with your local council
• Event fees - Many events charge a flat fee or percentage of sales for food truck spots
• Vehicle registration and roadworthy - Your truck is a vehicle and a business premises
• Insurance - Public liability, product liability, vehicle, and contents insurance

Record each of these separately in your books. Some are annual costs that should be spread over 12 months using prepayment accounting.

Vehicle and Equipment Costs

Your truck itself is a depreciating asset. Record the purchase price (or the cost of fitout if you converted a vehicle) as an asset and depreciate it over its effective life.

Equipment inside the truck - fridges, grills, fryers, bain-maries - are also depreciable assets. Track them separately from the vehicle.

Fuel and maintenance are ongoing expenses. Track them in dedicated expense accounts so you can monitor running costs.

GST for Food Trucks

Food and beverages sold for immediate consumption are generally subject to GST. This includes everything served from a food truck.

However, if you sell any packaged food items that are not for immediate consumption, they may be GST-free. The ATO's rules on food and GST are detailed, so check the specifics for your menu items.

Record your GST obligations correctly and lodge your BAS on time. A tool like SortBooks can help by automatically identifying GST-applicable transactions and calculating your GST position.

Seasonal Considerations

Food truck revenue is often seasonal:

• Summer - Peak season for most food trucks. Festivals, markets, and outdoor events are plentiful.
• Winter - Trading slows unless you sell warm comfort food. Consider pivoting your menu or focusing on indoor events.
• Event calendar - Plan your year around major events and festivals in your area. Book early for the best spots.

Build a cash reserve during peak months to cover expenses during quieter periods.

Bookkeeping Checklist for Food Trucks

1. Count cash and reconcile to POS daily
2. Bank cash takings regularly
3. Record all purchases (photograph receipts)
4. Track revenue by location and payment method
5. Calculate food cost percentage weekly
6. Reconcile bank accounts weekly
7. Review profit and loss monthly
8. Lodge BAS quarterly
9. Keep permits and licences up to date
10. Set aside money for tax during peak months

Food trucks are a fantastic business model, but only if you know your numbers. Set up simple, consistent bookkeeping systems and you will always know whether your truck is cooking up profits or losses.