The next element is the category. Do you want to account separately for food cost and beverage cost? Do you want to take account for supplies such as napkins and to-go boxes differently from detergents? All these should be clarified to get a better understanding when you look at your financial statements.

The more you want to categorize, the more involved accounting will be. For example, if you purchase food and beverage at a store and you have that mixed in a single receipt. The accounting person will need to look at the receipts and recalculate how much each item are (plus calculate sales taxes separately in some cases)

The key to deciding how you want these to be handled is what you want to see to make sound judgments for your business. Even if an accountant uses a lot of time to categorize, if you are not using it for business judgment, it may be a waste of time. Start simple, then pick the area to be sophisticated.

Business is always changing and accounting should change accordingly.