Viable Solutions for Restaurant Accounting Needs

As a restaurant owner or manager, you know how hectic and fast-paced the industry can be. With a high volume of customers and orders to manage, keeping track of financial statements, receipts, and bookkeeping can easily fall by the wayside. However, neglecting these important tasks can lead to major headaches down the line. 

Our restaurant accounting CPAs from Interactive Accountants are here to present you with practical accounting solutions that can help you stay on top of your finances and reduce stress, so you can focus on what you do best– running your restaurant.

What is Restaurant Accounting? 

Restaurant accounting is the process of recording, tracking, and analyzing financial transactions and data related to the operation of your restaurant. Restaurant accounting involves managing income, expenses, and inventory, as well as monitoring cash flow, preparing financial statements, and complying with tax laws and regulations.

In the restaurant industry, accounting is crucial for making informed decisions, managing costs, and maximizing profits. Effective restaurant accounting provides owners and managers with insights into the financial health of their business while helping them identify areas for improvement. This enables them to make strategic decisions to grow and scale their hospitality operation. Additionally, accurate accounting practices ensure compliance with legal and regulatory requirements and reduce the risk of financial errors or fraud.

Do Restaurants Need a Dedicated Accountant? 

As a restaurant owner or manager, you’re responsible for managing a wide range of tasks, from staffing and inventory management to menu planning and marketing. With so much to do, it’s easy to overlook the importance of proper accounting practices. However, effective restaurant accounting is essential for maintaining financial health and making informed business decisions. 

This raises the question: do restaurants need a dedicated accountant? The answer is: it depends. 

While some restaurants may be able to manage their accounting needs in-house or with the help of a part-time bookkeeper, others may benefit from the expertise of an accountant who understands the hospitality business. 

Managing Accounting In-House or with a Part-Time Bookkeeper

One option for managing restaurant accounting is to handle it in-house or with the help of a part-time bookkeeper. This approach may be suitable for smaller restaurants with simpler financial needs. 

Advantages of this option include:

• Cost savings: Managing accounting in-house or with a part-time bookkeeper can be more affordable than hiring a dedicated accountant.
• Control: Handling accounting in-house gives you more control over the process and enables you to make decisions quickly.
• Familiarity: In-house staff or a part-time bookkeeper may be more familiar with the unique financial needs of the restaurant.

However, there are also some drawbacks to managing restaurant accounting in-house, including:

• Limited expertise: In-house staff or a part-time bookkeeper may not have the specialized expertise and knowledge required to manage complex accounting tasks or to provide strategic financial advice.
• Time-consuming: Managing restaurant accounting in-house can be time-consuming and can take you away from other important tasks, such as running the restaurant and serving customers.
• Risk of errors: If accounting tasks are not managed accurately, it can lead to costly errors and negatively impact the financial health of the business.

Hiring a Dedicated Restaurant Accountant

Another option for managing restaurant accounting is to hire a dedicated accountant. This approach may be more suitable for larger or more complex restaurants that require a higher level of financial expertise. 

The advantages of hiring a dedicated restaurant accountant include:

• Specialized expertise: A dedicated accountant has the expertise and knowledge required to manage complex accounting tasks and provide strategic financial advice.
• Time-saving: Hiring a dedicated accountant frees up your time to focus on running the restaurant and serving customers.
• Risk management: A dedicated accountant can help you identify and mitigate financial risks, such as fraud or errors.

However, there are also some drawbacks to hiring a dedicated restaurant accountant, including:

• Cost: Hiring a dedicated accountant can be more expensive than managing accounting in-house or with a part-time bookkeeper.
• Less control: Hiring an external accountant means giving up some control over the accounting process and relying on someone outside of the business.

Whether or not a restaurant needs a dedicated accountant depends on factors such as the size and complexity of the business, the level of financial expertise required, and the available resources. If you’re unsure whether your restaurant would benefit from a dedicated restaurant accountant, consider setting up a free consultation with one of our professional and knowledgeable CPAs to evaluate your options and make an informed decision for your restaurant business.

What Financial Challenges do Restaurants Face in 2023?

The restaurant industry continues to face various challenges and issues impacting its bottom line. From rising costs to increased competition, restaurant owners and managers must be proactive in addressing these challenges in order to remain successful in their businesses. 

Some of the contributing financial stress factors for restaurants are: 

• Labor costs: With minimum wage increases across the country, restaurants face higher labor costs. In order to keep labor costs in check, many restaurants are turning to technology to streamline operations and increase efficiency.
• Competition: The restaurant industry is highly competitive, with new restaurants always opening. To stand out, restaurants must offer unique dining experiences, high-quality food, and exceptional customer service.
• Food costs: Food costs continue to rise, putting pressure on restaurants to keep menu prices competitive. To manage these costs, restaurants are turning to local and sustainable food sources and implementing waste reduction practices.
• Technology: Technology plays a significant role in the restaurant industry, from online ordering and delivery platforms to digital menu boards. Restaurants must keep up with the latest technology trends to remain competitive and relevant.
• Delivery services: The popularity of food delivery services like Grubhub and UberEats has changed how restaurants do business. To remain competitive, restaurants must now consider the costs associated with using these services and find ways to integrate them into their operations.
• Health and safety: With COVID-19 still impacting the world, restaurants must prioritize health and safety to maintain customer trust and protect employees. This includes implementing strict cleaning protocols, following social distancing guidelines, and providing personal protective equipment for employees.

How Can Restaurant Accounting Software Help?

Restaurant accounting software is a specialized tool designed to help restaurant owners and managers manage their financial data and operations more efficiently. While facing so many challenges in the restaurant business that can affect the longevity of the company as well as its financial health, restaurant accounting software typically includes features such as inventory tracking, sales reporting, payroll management, and financial statement preparation.

One of the key benefits of restaurant accounting software is that it helps automate many of the tasks associated with accounting and financial management. By eliminating the need for manual data entry and calculations, restaurant accounting software can save time and reduce the risk of errors. Additionally, many restaurant accounting software solutions are cloud-based, meaning that they can be accessed from anywhere with an internet connection, making it easier for owners and managers to stay on top of their finances and make informed decisions.

Some of the features commonly found in restaurant accounting software include:

• Sales tracking: Restaurant accounting software can help owners and managers track sales data, including the number of orders, average check size, and total revenue. This information can be used to identify trends and make data-driven decisions.
• Inventory management: Restaurant accounting software can help owners and managers track inventory levels, monitor food costs, and manage menu pricing. This can help reduce waste and optimize profitability.
• Payroll processing: Restaurant accounting software can help automate payroll calculations and manage employee time tracking. This can save time and reduce the risk of errors.
• Financial reporting: Restaurant accounting software can help generate financial statements such as profit and loss statements, balance sheets, and cash flow statements. This information can be used to evaluate the financial health of the business and make informed decisions.

Restaurant Accounting Software Solutions from Interactive Accountants 

Restaurant accounting software is a powerful tool that can help restaurant owners and managers stay on top of their finances and optimize their operations. By automating many of the tasks associated with accounting and financial management, restaurant accounting software can save time, reduce the risk of errors, and provide valuable insights into the financial health of the business. That’s why the restaurant accounting and bookkeeping professionals at Interactive Accountants offer a variety of service plans for restaurant accounting that come with a subscription to Quickbooks online and are designed to fit a range of budgets. 

Contact an Experienced Restaurant Accounting Professional Today! 

Looking for an experienced accountant who specializes in the restaurant and hospitality industry? Here at Interactive Accountants, assisting businesses to grow and succeed financially is our number one goal, and our team of CPAs has years of experience helping restaurant owners and managers manage their financial data and operations more efficiently.

We understand that the restaurant industry is fast-paced and constantly changing, which is why we offer specialized accounting services tailored to your unique needs. Our restaurant accounting services include inventory tracking, sales reporting, payroll management, financial statement preparation, and more. With our help, you can streamline your financial management processes and make informed decisions to optimize your restaurant’s profitability. 

Contact us today by calling [phone] to schedule a free consultation with our owner Matthew Shiebler, CPA, or get started by filling out the contact form below.