Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain

Accounting for Restaurants in Bahrain

POS Integration, Tax Compliance & Profit Optimization for the F&B Sector

Running a restaurant in Bahrain isn’t just about flavor, service, and ambiance — it’s about numbers, margins, compliance, and growth. Whether you own a small café in Manama or operate a multi-location F&B chain across Bahrain, your business lives and dies by accurate bookkeeping, compliant tax reporting, and real-time financial visibility.

At FAMABH, we specialize in restaurant accounting services designed to take the stress out of financial management. With integrated Point-of-Sale (POS) solutions, VAT-optimized accounting, and industry-specific guidance, we give restaurant owners the tools they need to grow profitably, stay compliant, and focus on what they do best: running a great restaurant.

Accounting and audit firm bahrain

Serving Your Numbers As Well As You Serve Your Guests

Running a restaurant in Bahrain is exciting but comes with complex financial challenges – from daily sales tracking to VAT compliance. At Famabh, we specialize in restaurant accounting, helping F&B businesses integrate POS systems, maximize tax savings, and simplify financial management.

 

Why Restaurants in Bahrain Need Specialized Accounting

1. The Complexity of F&B Finances

The restaurant industry isn’t like other businesses. You’re dealing with:

  • High transaction volume (cash/card/e-wallets)

  • Frequent inventory turnover

  • Spoilage, wastage, theft

  • Daily reconciliations

  • Staff payroll, tips, and overtime

  • Supplier payments, credit terms, fluctuating margins

 

Generic accounting services don’t cut it. What you need is a team that understands food costs, portion control, POS integrations, and tax nuances specific to the F&B industry in Bahrain.

 

2. VAT Compliance is Non-Negotiable

Since the implementation of VAT in Bahrain, all taxable supplies by restaurants must adhere to strict documentation and reporting standards. Misreporting VAT can lead to penalties up to BHD 10,000 or even business suspension. Many restaurant owners get caught out by:

  • Misclassified items (e.g. dine-in vs. takeaway)

  • Unclaimed input VAT

  • Incomplete or inaccurate ZATCA/NBR filings

  • Poorly configured POS systems

We ensure you’re not one of them.

 

F&B Accounting Services in Bahrain

At FAMABH, we go beyond just bookkeeping. Our restaurant accounting solutions are end-to-end, proactive, and fully tailored for Bahrain’s F&B market.

 

1. POS Integration & Smart Bookkeeping

Seamlessly connect your POS system with your accounting platform to automate:

  • Sales reporting (daily, weekly, monthly)

  • Inventory usage and wastage tracking

  • Real-time gross profit calculations

  • Multi-outlet performance comparisons

 

We support integrations with:

  • Toast, Revel, Square, Clover

  • Oracle Simphony, Axanta, Lightspeed

  • Custom POS and local Bahrain-based POS systems

 

Benefits:

  • Reduce manual data entry by 90%

  • Automate reconciliations and Z reports

  • Track promotions and discounts accurately

  • Sync sales with accounting in real-time

 

2. Inventory & Cost of Goods Sold (COGS) Tracking

Know exactly what each dish costs you. We help restaurants:

  • Build recipe-level COGS tracking

  • Reduce shrinkage and over-portioning

  • Link purchases to menu pricing

  • Improve supplier contract management

 

Why it matters: A 3% reduction in food cost can double your net profit.

 

3. VAT Accounting & NBR Compliance

  • Monthly/quarterly VAT filing and reconciliation

  • Input VAT claim optimization

  • E-invoicing setup (if required by law)

  • Preparation of tax-ready reports for audits

  • Advisory on zero-rated and exempt items (e.g. export meals, catering, delivery)

 

Results: Ensure every VAT filing is accurate, on time, and defensible during audit.

 

4. Payroll & Labor Cost Management

Restaurants in Bahrain often deal with complex staff structures: full-time, part-time, hourly, and seasonal workers. We handle:

  • GOSI compliance

  • Payroll processing & payslips

  • WPS file generation

  • Gratuity calculations

  • Overtime tracking and tip pooling

 

Goal: Keep your team paid and compliant while maintaining profitability.

 

5. Monthly Financial Statements & Management Reports

Get clear insights, not just numbers:

  • Profit & Loss Statement with COGS breakdown

  • Cash flow forecasts

  • Location-wise performance

  • Sales-to-labor and food cost ratios

  • Business health KPIs

Delivered monthly, these reports help you make faster, smarter decisions.

 

Why Choose FAMABH for Restaurant Accounting?

 

✅ Bahrain-Focused F&B Expertise

We understand the local market, tax laws, and business landscape. From food truck startups to five-star hotel dining operations, we’ve supported them all.

 

✅ Industry Tools, Not Generic Spreadsheets

We work with modern tools like Xero, QuickBooks, Zoho, and restaurant CRMs and POS integrations. Your data flows in, your reports flow out.

 

✅ We Speak Your Language

We won’t bombard you with accounting jargon. You’ll get plain-English explanations and actionable advice.

 

✅ Proactive Support

From cost-cutting tips to pricing optimization and VAT savings strategies — we go beyond compliance to help your restaurant thrive.

 

How We Work With You

 

🟦 Step 1: Free F&B Accounting Consultation

Tell us about your restaurant setup, your current system (or lack thereof), and your goals.

 

🟦 Step 2: POS & Process Audit

We review your existing POS, menu structure, and reporting tools to identify gaps and automation opportunities.

 

🟦 Step 3: Custom Accounting Setup

We connect your POS to cloud accounting tools, design your chart of accounts, configure tax settings, and set up cost tracking.

 

🟦 Step 4: Ongoing Monthly Support

Each month, you’ll receive:

  • VAT-ready books

  • Financial statements

  • Advisory from a dedicated restaurant accounting expert

 

Common F&B Accounting Mistakes We Fix

  • Not reconciling POS sales with bank deposits

  • Recording sales gross of VAT (instead of net)

  • Mixing personal and business expenses

  • Missing input VAT on eligible purchases

  • Inaccurate COGS due to no recipe-based costing

  • Filing late VAT returns and incurring fines

  • Using Excel instead of cloud accounting software

  • No budget or financial forecasts

If any of this sounds familiar, we can help.

 

Compliance With Confidence: Bahrain VAT for F&B

Navigating Bahrain’s VAT system as a restaurant is tricky. Here’s what you need to know:

 

CategoryVAT StatusCommon Issues
Dine-in mealsStandard rate (10%)Misclassification, discount errors
Takeaway & deliveryStandard rate (10%)Overlooked invoice breakdowns
Bottled water, juicesStandard rate (10%)Untracked promo giveaways
Tips & service chargesExempt / Optional VATMisreporting on receipts
Staff mealsNot deductibleIncorrect input claims

We help you set up your systems to track VAT correctly from day one — and adjust historic filings if needed.

 

What You Gain with FAMABH

  • Peace of mind: no missed VAT filings or payroll errors

  • Clear financial insights: know your margins, not just your sales

  • Better decisions: based on real data, not gut feeling

  • More time: for operations, customers, and growth

  • Lower tax burden: through legally optimized filings

  • Scalable systems: ready to grow as you open more locations

 

Pricing Plans for F&B Businesses

Our pricing is transparent and scalable based on your restaurant’s size, number of locations, and service needs.

✅ Starting at BHD 150/month for single-outlet restaurants
✅ Includes POS integration, VAT filings, and monthly reports
✅ Add-ons: payroll, inventory costing, multi-location consolidation

Get a custom quote within 24 hours.

Get a Free Quote

Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.

Write to Us

Pricing Plan

Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.

Chosose Plan

Accounting

Chosose Plan

VAT

Chosose Plan

Audit

Testimonials

What Clients Say About Us

Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!

    Maria Luise Lackner

    Client

    I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.

      Aya Alsalman

      Client

      Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.

        Meghaa Muraleedharan

        Client

        The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.

          Joseph Dawber

          Client

          Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.

            Jennifer Giannosa

            Client

            I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.

            What Makes Us the Best Choice?

            With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.

            Personalized & Tailored Approach

            Years of Experience & Unmatched Expertise

            Comprehensive Solutions Under One Roof

            Accuracy, Reliability, and Client Satisfaction

            POS Integration: The Backbone of Modern Restaurant Accounting

             

            Today’s restaurants thrive on speed, accuracy, and automation. Manual entry of daily sales, refunds, voids, and discounts not only wastes valuable time — it also leads to costly errors. POS integration solves this.

             

            ✅ What is POS Integration?

            It’s the direct connection between your Point-of-Sale system (like Oracle Simphony, Axanta, or Square) and your accounting software (like Xero, QuickBooks, or Zoho Books). This ensures:

            • Every sale is instantly reflected in your books

            • No duplication or missed transactions

            • Daily financials are available in real-time

             

            🔧 What Gets Synced?

            • Sales data: daily totals, itemized invoices

            • Refunds & discounts

            • Tips & service charges

            • Tax collected (VAT)

            • Inventory sold

             

            ⚙️ Compatible Systems We Work With:

            • Oracle Simphony & Micros

            • Square for Restaurants

            • Lightspeed Restaurant

            • Toast POS

            • Axanta Cloud ERP

            • Revel Systems

            • Local POS systems in Bahrain (custom API integrations)

             

            Bottom line: With smart POS integration, you get error-free books, faster VAT filing, and clear business intelligence — every single day.

             

            Advanced Inventory Accounting for Restaurants

            Inventory is the largest controllable cost in most restaurants — yet it’s also the most frequently mismanaged. Without precise tracking, restaurants lose thousands every month to over-ordering, theft, spoilage, or poor portioning.

             

            🍅 How We Help You Track Inventory & Reduce Cost:

            • Implement inventory software with real-time ingredient tracking

            • Calculate Cost of Goods Sold (COGS) down to each menu item

            • Set par levels and auto-generate purchase orders

            • Perform monthly variance reports to catch discrepancies

            • Build recipe-based costing linked to live POS sales

             

            📉 Benefits:

            • Reduce waste by up to 30%

            • Identify your most profitable dishes

            • Spot pricing errors or supplier overcharges

            • Make data-driven decisions on your menu

            Example: A sushi bar in Juffair saved BHD 800/month just by aligning actual inventory with sales and identifying excessive spoilage on high-cost tuna items.

             

            Multi-Branch & Franchise Accounting Made Easy

            If you’re managing more than one restaurant location, manual accounting quickly becomes a nightmare. Consolidating reports, tracking location-wise performance, and managing intercompany billing can get out of hand.

            We specialize in multi-branch and franchise accounting that gives you a clear financial picture across your entire F&B group.

             

            📊 Features We Provide:

            • Separate books for each outlet, with consolidated group-level reporting

            • Outlet-wise profitability reports

            • Shared service cost allocation (marketing, HR, admin)

            • Royalty, brand, or franchise fee accounting

            • Centralized inventory and supplier management

            • Group VAT filing with proper documentation

            Whether you’re a two-branch café or a ten-outlet restaurant group, we give you clarity, compliance, and control.

             

            F&B Budgeting, Forecasting & Financial Planning

            The most successful restaurants don’t just look backward at monthly reports — they look forward with forecasts and strategic plans. We help you build and manage restaurant-specific financial models.

             

            📘 What We Provide:

            • 12-month cash flow forecasting based on sales trends and seasonality

            • Labor forecasting based on peak/off-peak hours

            • Budgeting for expansion or new branches

            • Scenario planning: “What happens if delivery grows by 20%?”

            • Break-even analysis for new concepts or locations

             

            🤝 Use Cases:

            • Planning to open a second location? We help estimate feasibility.

            • Want to launch a catering business? We model potential profitability.

            • Facing cash flow crunches? We simulate solutions.

            When your numbers tell a story, you can plan with confidence.

             

            Business Advisory for Growth & Profit Optimization

            Accounting is about more than compliance — it’s a tool for growing your restaurant sustainably and profitably. Our team of F&B-specialized advisors works with restaurant owners to improve operations, increase margins, and scale wisely.

             

            🚀 How We Help Restaurants Grow:

            • Benchmark your numbers vs. Bahrain industry averages

            • Identify underperforming menu items, suppliers, or shifts

            • Evaluate pricing strategies and cost-cutting options

            • Optimize labor-to-sales ratios

            • Advise on funding, franchising, or partnerships

             

            🧠 Real Value:

            Whether you need help preparing for investor meetings, securing a bank loan, or preparing financials for a potential sale — we’ve got your back with reliable, professionally prepared numbers.

             

            FAQs – Restaurant Accounting & POS Integration in Bahrain

             

            1. Why do restaurants in Bahrain need specialized accounting services?

            Restaurants operate in a fast-paced, high-volume environment where even small errors in inventory, tax, or payroll can result in large losses. Specialized accounting ensures accurate food cost tracking, VAT compliance, real-time POS integration, and margin optimization—something generic accounting services can’t offer.

             

            2. Can FAMABH integrate with my existing POS system?

            Yes. We work with most leading POS systems used in Bahrain, including Oracle Simphony, Toast, Square, Axanta, and more. If you use a custom or localized POS system, we’ll assess its integration capabilities and connect it with your accounting software via API or automation tools.

             

            3. How does POS integration help my restaurant?

            POS integration eliminates manual data entry by automatically syncing your sales, refunds, taxes, and tips into your accounting software. This reduces errors, saves time, improves VAT accuracy, and gives you real-time visibility into your restaurant’s financial performance.

             

            4. Is VAT registration mandatory for restaurants in Bahrain?

            Yes. Any restaurant in Bahrain generating annual revenue above BHD 37,500 must register for VAT with the National Bureau for Revenue (NBR). Failure to do so can result in fines, back taxes, and even closure orders.

             

            5. How do restaurants in Bahrain handle VAT on dine-in vs. takeaway?

            Both dine-in and takeaway services are subject to the standard 10% VAT in Bahrain. However, accurate classification in your POS and invoices is essential to avoid over- or under-reporting. We help configure your POS and train staff to ensure VAT is applied and recorded correctly.

             

            6. Can I claim VAT on my food purchases and inventory?

            Yes, but only on items that are used for making taxable supplies (i.e., food you sell). You can’t claim VAT on personal use, staff meals, or certain entertainment expenses. We help restaurants track eligible input VAT and ensure proper documentation is in place for every claim.

             

            7. What kind of reports will I get monthly?

            We provide detailed monthly financial reports including:

            • Profit & Loss (P&L) with food/labor cost breakdown

            • Cash flow reports

            • Balance sheet

            • Location-wise and category-wise sales summaries

            • Tax summaries and VAT filing reports

            These reports are designed to support daily operations and strategic planning.

             

            8. Can you help with payroll and GOSI compliance?

            Yes. We manage full payroll services, including:

            • Salary calculations

            • GOSI contributions

            • WPS (Wage Protection System) file preparation

            • Staff payslips

            • End-of-service calculations
              This ensures timely payments and labor law compliance across Bahrain.

             

            9. How do you calculate the Cost of Goods Sold (COGS) for my menu items?

            We build a recipe-based costing model using your supplier prices and portion sizes. This gives you precise COGS per dish, allowing you to identify over-priced or low-margin items. Integrated with inventory and sales data, this model updates in real-time to reflect your actual performance.

             

            10. Can you track food wastage and help reduce it?

            Absolutely. We implement inventory systems that track ingredient usage, flag variances, and detect waste patterns. Combined with weekly performance reports, this allows you to reduce shrinkage, spoilage, and over-portioning, which often account for 10–20% of losses.

             

            11. How can I improve the profitability of my restaurant using accounting data?

            By analyzing your gross profit margins, labor costs, and overheads, we identify areas to optimize — such as renegotiating supplier contracts, adjusting menu pricing, or trimming staff hours during low-sales periods. You get data-backed insights to run lean and stay profitable.

             

            12. What are common VAT mistakes restaurants in Bahrain make?

            Common issues include:

            • Applying incorrect VAT rates

            • Not reconciling POS sales with bank deposits

            • Failing to issue compliant tax invoices

            • Missing input VAT claims

            • Late filing or payment
              We help you avoid all of these with automated processes and monthly reviews.

             

            13. How does your service help with multi-location restaurants?

            We offer centralized accounting and branch-level reporting. This includes:

            • Outlet-wise P&L and performance dashboards

            • Consolidated VAT returns

            • Centralized payroll and inventory management

            • Inter-branch transactions and royalty accounting
              This gives you full control over your restaurant group’s financials.

             

            14. Can I still use Excel or paper records for my accounts?

            While possible, it’s inefficient and risky. Excel lacks real-time visibility, audit trails, VAT reporting, and scalability. We help you migrate to cloud accounting platforms like Xero or QuickBooks, integrated with your POS and bank for complete automation.

             

            15. Do you assist with audit preparation?

            Yes. We prepare audit-ready books, organize your records, and ensure compliance with Bahrain’s tax and corporate regulations. If you’re selected for a tax or GOSI audit, we’ll support you with documentation and direct communication with authorities if required.

             

            16. What is your pricing for restaurant accounting in Bahrain?

            Pricing starts at BHD 150/month for single-location restaurants. This includes VAT filing, POS integration, bookkeeping, and monthly reporting. Multi-location or high-volume restaurants may require custom quotes based on complexity, outlets, and service scope.

             

            17. How fast can I get started?

            In most cases, we can onboard your restaurant within 3 to 5 business days. This includes setting up integrations, configuring your chart of accounts, reviewing your POS structure, and preparing your initial reports. We work fast — so you can too.

             

            18. Can you help new restaurants with accounting setup?

            Definitely. We work with many startups and newly opened restaurants to set up:

            • POS accounting connections

            • VAT registration

            • Inventory systems

            • Payroll/GOSI

            • Financial projections
              We’ll help you start right, so you can avoid expensive fixes later.

             

            19. Do you offer financial forecasting or budgeting?

            Yes. We provide custom financial models for cash flow forecasting, sales projections, and expansion planning. This is useful for both internal strategy and external funding discussions with investors, landlords, or banks.

             

            20. How can I book a consultation with FAMABH?

            We offer a free initial consultation to understand your restaurant’s needs and propose the most effective accounting setup.

            Get a Free Quote

            Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.

            Write to Us