Managing a restaurant is a challenging but completely rewarding experience. It’s composed of different tasks that are interconnected with each other, if you manage to execute one poorly, it’ll start a domino-effect phenomenon on your entire management. That’s why every part of your management must be in its optimal condition. The remaining question would be, is how will you be able to do that? Deploying different types of restaurant software and technology such as restaurant accounting software is the best solution for you.
One of the most overlooked areas of restaurant management is the management of its finances. The absence of proper restaurant accounting practices is harmful to your restaurant and will lead to its downfall. It is ideal for every restaurant owner to create a competent team to handle their finances and accounting, make it easier for your staff and provide them a tool that will help them produce more accurate and effective results.
Discover the great things software for restaurant accounting can deliver for your restaurant as you read along towards the end of this article.
Accounting Software for Restaurants
This technology was developed to help restaurants manage transactions related to accounting and finances. It records and manages all accounting procedures such as payroll, accounts payable, accounts receivable, inventory, and invoices. It keeps your entire restaurant in line by complying with every tax law and accounting deadline you have. It helps you to avoid paying fines, which is helpful for you to keep your costs leveled.
By deploying this type of software, you can create a systemized management for your restaurant accounting. You’ll be capable of procuring effective and efficient ways to manage your restaurant’s numbers. After all, no one is keeping you in improving your restaurant management ways.
Today’s Restaurant Industry has established different ways of handling their accounting, you may choose to do it on your own, hire an in-house accounting team, outsource from a reputable accounting firm, or use software to track, monitor, and process your restaurant’s accounting procedures. Each has its strengths and can help you reach a great position in the market but since the competition is more aggressive and is mostly automated, trying out the software for accounting may be the best option for you.
Experience is a great thing to hold on to, but you have to understand how quickly the Hospitality and Restaurant Industry adapt to changes. What was considered the best solution now will be soon phased out and other tools that offer more functionality will be the next step to take you to the top. You have to be quick on your feet, and understand how deploying this accounting software creates opportunities for you and your restaurant.
As a restaurateur, knowing what are the needs of your restaurant is part of your many responsibilities. From an accounting perspective, you have to address needs on payroll, tax compliance, management of your accounts payable and receivable, invoice and receipt documentation, and organization. If you’re going to deploy accounting software for restaurants, it can also help you with your inventory, scheduling, table, and even menu management.
Features to look for in Accounting Software for Your Restaurant
There is much software for restaurant accounting available in the market, to help you decide which one will suit best your restaurant’s concept, here’s a list of the features that you should check on.
One thing that will keep your staff high spirited is if they are being handed their payroll on time. This software helps you manage your staff payroll easily, now you can set recurring payroll schedules, or if you want to separate the schedule for your front-of-the-house to the kitchen staff pay, it’s also possible.
No need to worry about your payroll system, as it will be sent on time with no eros about tax deductions.
If you still want a human touch on your finance management, you have to look for software that will keep your files secured at the same time accessible for the experts. Sharing the most essential finance and accounting information with your accountant will make it easier for them to handle your restaurant’s accounting concerns. With the help of this software, you can produce accurate reports about your restaurant’s numbers.
All the pending accounts payable and receivable of your restaurant will be automatically updated on your reports if you have account management software. Every invoice you sent, the outstanding amount, and the duration of payment will be recorded. This makes it easier for you to stay on top of your finance management.
Aging reports will be on record as well, as this software collects and presents every accounting and financial transaction your restaurant creates. Through this, tracking payment transactions will be more manageable.
Not a necessity, but should be considered a priority. Connecting your accounting software with your local bank is a great way to streamline the process of transferring your restaurant’s financial information. Instead of inputting it manually on every platform and system, you can just sync it on the system of your selected bank.
You can now save time interacting with your bank all the time, and it adds security for your business’ sake.
Your balance sheet should reflect the following.
- Assets – Things your restaurant owns that has value
- Liabilities – Amounts that your restaurant owes
- Equity – Value of your entire restaurant
To keep track of your finances, you should be able to produce accurate financial reports that contain the above-mentioned at any given time. It shows how well you’re in charge of your restaurant business. Utilizing accounting software gives you that capability.
You can also customize your reports according to your restaurant’s need where every accounting category will be set up for you. Highlighting the important areas of the report is helpful to make your report easy to comprehend.
Another important accounting document is your ledger. It is where your restaurant’s assets, liabilities, equity, expenses, and revenue are recorded. All the financial transactions within a specific period. This document is necessary to produce an accurate financial report as you can use it to create a trial balance.
An income statement will also be available for your perusal once you have bar and restaurant accounting software. This financial document helps you track your restaurant’s profits and losses. It reports about your business’ expenditures, sales, and performance services. This is one of the financial documents used to measure a restaurant’s business health track.
Tax accounting and reporting will be in a single click since it’ll be automated on the invoices you send your customers. You can also easily track the tax payments you need to settle and organize your payment schedule accordingly.
It is best if you can customize the invoice that you’ll send according to your restaurant brand. Modern accounting software allows you to put your logo and essential information about your restaurant on your invoice.
If sent online, you can also track when your customers and suppliers opened, view, and pay for your invoice. Every customer transaction and history will be recorded, which makes it easier for you to file a report if needed.
You can also bill and accept payment of different currencies and your reports will generate into your default currency automatically.
Even transactions of your inactive customers can be retrieved with the help of this new technology. You can also organize them by their name, address, average spend, or expenses incurred if applicable.
Also, it enables you to send payment reminders to your customers without appearing tacky.
If you have an in-house accounting team, you can restrict their access according to their role. You must keep your finance records secured and safe from inside theft.
Linking your accounting software to your inventory management system is one of the best things you can do for your entire restaurant operations. It helps you produce accurate inventory reports and allows you to manage your purchases and inventory seamlessly.
Benefits of Using Accounting Software for Restaurants
Aside from helping you provide a better accounting system for your restaurant, there are several benefits this technology can offer for your restaurant. Read along to know more.
It provides customized invoice instantly
The payment process will be faster because you can send customized and accurate invoices instantly. Provide a better customer experience by minimizing your customers’ waiting time for their invoices. You can also set up recurring invoices to save more time.
It helps with payroll management
No more late salary for your restaurant staff as you can set a payment schedule through your accounting software. Lessen the burden on your end by letting this technology solve your wage, benefit, and overtime payment. Tax compliance on your staff’s payslip can easily be managed via this software.
It improves inventory management
Functional accounting software can be linked directly with your inventory management. This way, you’ll have a better insight into your stocks and purchasing behavior. It can provide you real-time stock availability and remind you what are products need repurchasing ( and how much they will be).
It serves as a guide for business-decision making process
You’ll have access to real-time financial and accounting reports of your restaurant. Inventory and cash flow forecasts are all covered services of accounting software for a restaurant business. It provides you a better comprehension of the status of your financial health, and you also reduce the burden on your staff.
The ability to import transactions helps you save the time of manual data entry. If it’s connected to your bank, you can present live bank transaction data with your accounting team for improved partnership.
Factors to Consider when Choosing the Best Accounting Software
There’s no need to rush and commit to single accounting software, you must ensure that you understand well how your restaurant will benefit from a certain software. Accounting software developers are continuously doing improvements to the existing software in the market, so you have to be mindful of the factors to consider in looking for the best one in the market.
You have to look into your budget and see what accounting software for the restaurant fits it perfectly. There are also tech providers that can arrange monthly and annual payments. It is wise to consider your allocated budget for this type of cost, as your main goal is to be on top of your finance and cost management not to increase your costs.
You may start looking for accounting software that offers free trials to see how they can help your restaurant without committing to their services right away.
As mentioned above, tech developers are constantly providing upgrades for this software. Make sure that you’ll be kept updated with all the upgrades that they will apply to the software and you’ll be asked a fair amount for an upgrade. No one wants to utilize outdated technology, after all, you want to stay at the top of your game is one of the main reasons why you’re deploying different types of technology.
Accessibility is important for restaurant management. The ability to monitor, track, and update data anywhere and using any device will put you in a great advantage on the market. Ensure that your accounting team will not have a hard time accessing your financial and accounting data by choosing software with flexible deployment. It should not be only web-based, but consider looking for a web-based,cloud-based, and window-based accounting software.
It is also a huge plus if your accounting tool is mobile-friendly and has a mobile app.
One of the factors that you should prioritize is if you can customize your accounting system dashboard and platform according to your brand. Make it easier for your customers, staff, and even vendors to identify invoices and other financial documents from your restaurant by deploying an accounting tool that will allow you to place your logo and do your branding.
Other accounting software may require you to pay an extra fee for this extra feature, but you have to look at how it’ll pay its worth in the long run.
It is just rational to establish that every accounting tool developed is secured and safe for financial documentation. Just make sure that your provider has a reliable and competent security and support team. You have to prepare your restaurant team for every cyberattack, fraud, and other financial or accounting concerns you may encounter.
Key Players in the Restaurant Industry
To complete this article, here’s a list of the considered best accounting tools and software in the Restaurant Industry. Take a look at how they differ from each other, and what will be the best option to meet your restaurant’s needs and concept.
Also considered as the best accounting tool for food trucks because of its iPad-based built-in POS system. It was launched last 2010 and has reached international markets since then. It can help you whether you’re new in the industry or an industry veteran. It has a user-friendly interface that simplifies bookkeeping, accounting, and payroll management.
It offers different payment plans and they will help you arrange the best one for your restaurant.
It is cloud-based accounting software that was released last 2012. It accommodates the basic needs of every restaurateur such as invoices, staff scheduling, and order management. While it doesn’t offer payroll services, this software is one of the few where you can integrate different types of software and systems on it. That’s why restaurant owners find this software as one of the best.
Restaurant365 offers multiple pricing arrangements per month and location. They also offer premium plans for an additional fee. If you’re interested but don’t have an idea on what’s the best plan for your current operational status, you may contact them directly via phone, email, or chat.
Another cloud-based accounting software that’s specifically designed for small restaurant owners. Don’t mistake its simple interface as it holds a wide variety of functionality such as invoicing, time tracking, and report analysis. It can be accessed via its app or desktop.
It is one of the accounting software that offers a free trial for thirty days. Take advantage of it and see if it will serve the best interest of your restaurant.
Bank reconciliation, invoicing, purchases, inventory, sales, and expenses are just some of the main functions of this cloud-based program for accounting. It integrates well with other apps and makes payroll management easier for you and on the go.
Monthly plans are also arranged by the Xero Team to meet the different demands of restaurant owners like you. You may talk to them directly or seek online assistance to check what’s the practical plan for your restaurant.
Though it’s one of the pioneers of accounting programs and software, it’s rest assured that they are still one of the best ones. They manage to keep up with the competition and don’t fail to provide improvement and upgrade to their existing programs. While it’s not made specifically for restaurant needs, it is still considered one of the easiest accounting tools to use. The only downside would be is that it may take time to set it up according to the needs of your restaurant.
Just like every provider, they also offer different plans that address different types of restaurant management concerns. But one of their main selling points is that they offer up to fifty percent discount for the first three months of subscription. Contact their team and discuss your current financial and accounting needs.