The restaurant industry has experienced significant changes in the last four years post-pandemic. With a notable increase in new establishments and existing ones expanding their reach, the industry is rapidly catering to the increased customer demand. However, the industry faces several problems that surprisingly come from different quarters: bookkeeping and accounting.
With growing competition, restaurants are constantly looking to optimize their finances and need the right accounting professionals who can deliver value in managing their books and increasing their financial efficiency and productivity. Given the complexities of restaurant accounting and the enormous workload, restaurants today are short of unlocking the benefits of efficient accounting.
In this blog, we explore why restaurant accounting is inefficient for today’s business. We then help find a simple solutions to help any restaurant unlock the full potential of efficient bookkeeping and accounting.
So Close Yet So Far – Accounting Challenges of the Restaurant Industry
High transaction volume, inventory management challenges, sales tax complexity, and payroll challenges—every component of restaurant operations throws a sea of challenges. They demand accuracy and volume and come with tight deadlines, making them difficult to manage without the right amount of skilled resources. To make this worse, the restaurant industry accounting landscape is faced with a trifecta of challenges that hinder effective financial management:
- Acute Accounting Shortage:Given the soaring demand for skilled accounting resources in the restaurant industry, it must compete with other sectors to attract and retain qualified talent.
- Lack of Restaurant-Specific Accounting Knowledge and Skills: Given how dynamic the restaurant industry tends to be, industry-specific knowledge and skills become crucial to navigating the specific challenges it throws. Without resources, an establishment may experience new challenges daily without fully optimizing the process due to the absence of the right professionals.
- Small Business Challenges:Adding the above two challenges to minor business problems like limited resources for hiring and retaining accounting staff or investing in the right restaurant accounting technology further exacerbates the issue. All in all, restaurants are far from reaping the benefits of a smooth and efficient bookkeeping and accounting system in improving financial management.
With hours of manual work consuming most of the time needed for insights, analysis, and optimization techniques, most businesses still need to reap the full benefits of practical accounting and financial management.
The majority of restaurant businesses face the problems mentioned above and often suffer in silence until they encounter major issues in their operations. So how can restaurants transform their bookkeeping and accounting to streamline operations, generate valuable financial insights, and enhance overall financial management?
Restaurants can build their full-cycle accounting department by hiring accounting talent and acquiring advanced accounting tools. This involves training and guiding the team to gradually improve their accounting performance over time. However, this approach is fraught with financial and accessibility challenges and requires significant time and substantial financial investments. If you are a restaurant business that cannot afford this, there is another option, which requires no major time & financial investment and delivers instant results compared to Option One. Read on to discover this fail-proof solution.
Boost Your Restaurant Accounting Efficiency Instantly with Outsourced Restaurant Accounting Services:
Back-office accounting firms specializing in restaurant accounting services provide everything a restaurant business needs to enhance its current accounting departments:
- Deliver Required Accounting Talent without Additional Hiring:Whether you are a single-location restaurant or a multi-unit restaurant group, the business demands accounting personnel whose needs may vary based on the seasons. A back-office accounting service can quickly augment the restaurant business, helping them during peak seasons.
- Industry-Specific Accounting Skill Set:Accounting firms employ industry-specific accountants with specialized skill sets relevant to particular industries. For example, at Outsourced Bookkeeping, we have accounting veterans with years of experience managing and overseeing restaurant accounting departments. This provides a significant edge for restaurants to overcome their challenges and optimize their processes seamlessly and flawlessly.
- Advanced Restaurant Accounting Technology Stack:Unless equipped with a full-scale accounting team, restaurant businesses lack access to advanced restaurant accounting technology that makes their job easier. Setting up the right technology stack requires in-depth industry-specific knowledge and know-how in the specific restaurant business, as every restaurant faces different challenges.
Outsourced accounting firms like us at Outsourced Bookkeeping are equipped with cutting-edge accounting tech stacks designed to overcome every industry challenge. We regularly work with restaurant businesses and thus bring industry-specific expertise and technology skills to solve the specific problems restaurant accounting teams tend to face.
Restaurant Accounting by Outsourced Bookkeeping:
If you are a restaurant business looking for extra help with your current accounting processes or complete end-to-end accounting assistance, back-office accounting is the best choice. It can equip you with all the support you need to make your accounting seamless.
With a team of restaurant accounting professionals who have helped many restaurant businesses perfect their Accounts Payable with our Restaurant Accounts Payable Services. We provide one of the market’s most comprehensive restaurant accounts payable services that simplify, streamline, and handle any complexity or volume of Accounts Payable.Check out complete information about our restaurant accounting services here.
