A day in a restaurant is as hectic as you can imagine. Everyone working both front and back of house carries out activities to keep the business running including purchasing raw materials, food preparation, customer service, cleaning, accounting, reporting… and the list goes on!
A restaurant manager is the one who ensures that things run smoothly and efficiently. The manager usually focuses on customer service and team management during opening hours. Yet they’re usually the one who ends up doing bookkeeping and reporting at the end of an exhausting day. The tedious and monotonous bookkeeping task is often overlooked and much more likely to fall to the very bottom of the priority list. This can lead to confusion and chaos when one inaccurate record occurs.
Why do you have to make it hard when you can make it smart? Let’s make bookkeeping tasks less tiresome with the aid of bookkeeping management software.
In this article, we’ll look into the importance of bookkeeping in a restaurant business, examine six reasons a restaurant business needs bookkeeping management software, and guide restaurant owners or managers in finding the right application to fit their business.
Why is bookkeeping important to a restaurant business?
What is bookkeeping?
We all know what bookkeeping is to some extent, but let’s break down what exactly we mean by bookkeeping before diving into why it’s important for restaurant businesses.
- Bookkeeping is the practice of recording all expenditures and incomes, which demonstrates the cash flow in a business.
- Bookkeeping management involves recording all financial transactions such as material expenses, service expenses, payroll, as well as income (like customer or client payments for goods and services).
- Bookkeeping is carried out regularly so that managers can track all information and money movements on their books to make key operating, investing, and financing decisions.
A bookkeeper is a person responsible for bookkeeping. Without bookkeepers, companies wouldn’t be aware of their current financial position, as well as the transactions that occur within the company’s walls. Many restaurant owners and managers take on their businesses’ bookkeeping management to save costs. The success of this task lies in restaurant owners and managers’ bookkeeping experience.
Why should restaurants do proper bookkeeping?
Bookkeeping management is a crucial function in the restaurant business for both legal and financial management purposes. It allows you to track every detailed report about the restaurant’s revenue, food, labor, and operating expenses. Based on these, a bookkeeper calculates precisely how much the restaurant is taxed and processes it on time.
It’s the restaurant’s legal obligation to pay tax and any restaurant owner and manager wants the tax procedures to go as seamlessly as possible. Proper bookkeeping management will save you plenty of time and work. It also ensures your business violates no obligations when it comes to money affairs.
Restaurant owners and managers often overlook the importance of matters such as keeping records of every penny spent. Over time this leads to confusion or even huge losses for any restaurant business.
Proper bookkeeping gives restaurant businesses a reliable measure of their performance. Thanks to that resource of information, you can get a snapshot of the business’ health and whether or not to adjust any operational activities.
Make the switch to bookkeeping management software
Bookkeeping management software which can do the same job as a bookkeeper and costs only a fraction of a bookkeeper’s salary is considered a good solution for restaurant owners and managers. Thanks to such software’s efficiency, thousands of restaurants have switched to these digital tools instead of hiring a bookkeeper .
6 reasons to invest in bookkeeping management software for restaurants
A study has shown that restaurants generate more than 1.5 billion pounds of paper waste per year on receipts alone. Your business does contribute a part to that huge number.
Paper receipts from customers and vendors can take up to 25% of a restaurant’s office space. Like other restaurant owners and managers, you may be keeping two or three copies of some documents and filing them in different places. This duplication creates waste and makes the workplace environment cramped and uncomfortable.
By digitizing receipts and storing them in bookkeeping management software, you don’t have to worry about storage anymore.
Every business should be conscious of the environment. With many tree-based products being used and wasted, there’s an estimate that the majority of Earth’s rainforests will be completely gone within the next 100 years. Going paperless is every business’ responsibility to help save the environment and protect the Earth.
Much of the paper waste produced by restaurants are customer bills and vendor receipts. You can help reduce these sources of waste by using bookkeeping management software.
3. Supply cost
Paper-based records include the cost of paper and several sources of indirect supply costs. The indirect supply costs include costs of filing cabinets, printers and ink, and other stationery.
Such costs for restaurants change depending on the season, with more papers issued during the busiest periods and fewer papers issued during off-peak seasons.
With bookkeeping management software, the supply cost remains the same through different points of the year, thus saving a lot of expenses for restaurant owners.
It’s hard to find the right piece of paper in a pile containing thousands of others. Even in the most organized workplace, it can still puzzle anyone searching for things, which slows them down. It can go from bad to worse if you’re in a rush and have to deal with difficult customers or merchants.
A digital document archive with a powerful search function will greatly improve one’s productivity. Bookkeeping management software helps restaurant owners and managers cut off lots of time on finding documents, thus staying focused and engaged in more important tasks.
Easy data accessibility is one of the key qualities that restaurant owners and managers look for in their bookkeeping management software. With a huge customer and vendor database, extracting and analyzing information done by a bookkeeper for one specific request is nearly impossible.
With bookkeeping management software, customer and vendor data has been extracted and stored in a place where you can search for it with a click. Thanks to this highly accessible feature of bookkeeping management software, now restaurant owners and managers can search their database in seconds.
Paper documents are susceptible to risk. Keeping piles of files on-site can introduce several risks, including an incident of fire, poor environmental conditions, and even theft.
If your business office catches on fire, your paper records could go up in smoke. Floods, earthquakes, and other natural disasters can also result in the loss of important business documents. If records are stored in moisture-prone areas, they’re subject to mold.
Therefore, off-site storage is a solution to protect important documents that many businesses look for. Unfortunately, restaurant records are not as secret and confidential as other financial documents, and restaurant owners and managers could not afford to pay a place at a professional records storage provider. Chances are they’ll look for something which can store documents safely and cost a reasonable price.
Bookkeeping management software is an optimal solution. Files digitized and stored on the cloud are much safer than in their physical form. Besides, digital documents are protected using multiple security solutions, encrypted, and restricted to limited users who have been granted access.
What is the best bookkeeping software for restaurants?
Now that you know about bookkeeping management software and its benefits, it’s time for decision making. Choosing the right one is essential because you’ll use it every day to track the money coming in and going out of your business.
However, the variety of software available in the market can confuse and overwhelm any decision-maker. Ask yourself these questions and you can eventually come up with a clear picture of what you’re finding.
Identify your needs
Do you need a platform that allows you to track inventory, receipt, and sales tax or more direct concerns? Do yourself a favor by making a list of your bookkeeping needs and prioritizing them from least to most important. Understanding your needs before you start researching solutions helps you find the right software without any doubts or concerns.
Look for features that meet your needs
It’s easy to get starry-eyed about features. Don’t blame yourself for this because some software is made to catch the eye of many people. Escape distractions, return to your list of prioritized needs, and evaluate only the software that meets the majority of those needs.
Check your budget
What if bookkeeping management software is amazing, but it’s beyond your budget? Or you may find a hot deal that does not come up with the features you wish to have? All in all, you should figure out the ideal software you wish to have and evaluate whether or not it can fit your budget.
Make bookkeeping management software part of your business operation today
Bookkeeping management software developed by Shoeboxed is an ideal tool for professional accounts and small business owners.
With Shoeboxed, you can turn your receipts into data and organize, make reports and analyze your current financial position at any time and anywhere.
To get the most out of your bookkeeping management, get started with Shoeboxed for free!