Whether you have already been a restaurant operator for a while, just opened recently, or simply thinking about opening your dream spot, you have probably heard the phrase, “Restaurants are risky.” A quick online search lists multiple articles that report 60% of new restaurants close within a year of opening and 80% by five years. While each article lists a myriad of reasons why restaurants fail, one of the overarching themes is money management. Whether it is a lack of experience handling finances to outright theft, failure to closely track income and expenses can sink a restaurant quickly. Most new restaurants simply don’t have the income to pay for in-house accounting and most owners are experts at creating their dishes, not accounting. The easiest and most practical way to put your restaurant’s financial books on the right path is to outsource your bookkeeping to a professional company. Many accounting firms offer a variety of services for a fraction of what it would cost to hire in-house and it can save valuable hours each month. Not convinced? Here are seven reasons why every restaurant should consider outsourcing their bookkeeping.
1. Accounting Expertise
Having a professional accountant working with your business means that you are benefiting from their years of training and experience. Not only will they be able to provide solid financial analysis, but some accountants specialize in helping restaurants and can offer more specific financial info for your business. An experienced accountant will not just be able to organize your books but will be a partner in helping your business succeed.
2. Saves Time
A professional accountant will also save you and your business hours each week. This time savings comes in three ways. First, you as the owner may take longer to do your own books each week than a professional, costing you hours you could spend focusing on your menu, staff, and everything else you must worry about! Second, most also use digital tools so it is easy to upload invoices and receipts, meaning less time tracking down documents when you need them. Third, with accurate books and professional guidance, you will make better decisions moving forward that will save you even more time and energy.
3. Detailed Reporting
When you outsource your bookkeeping, you are not just getting an expert. You are also benefiting from the online tools many accountants use. These can provide you with detailed reports, accessible 24/7. Whether it is a profit & loss report, balance sheets, or cash flow history, these reports help you make better decisions moving forward with your restaurant. They are also very useful when talking to investors or a bank. When speaking with an accountant, ask about these options so that you can take advantage of all of the tools a professional accountant brings to your business.
4. Make Tax Season Easier
Although your bookkeeper won’t be able to do tax preparation, they keep the detailed records you will need when it's time to file. When tax season arrives, you will not need to scramble to get your numbers in order. Your bookkeeper would have also been following Generally Accepted Accounting Principles (GAAP), which means there will be fewer if any surprises at tax time.
5. Avoid Fraud
Unfortunately, fraud is a worry for all business owners, but especially in the food industry with many restaurants being cash-heavy establishments. Add in the need to track tips and the possibilities for financial irregularities increase. A professional bookkeeper not only knows all of the regulations but offers an unbiased eye to look for fraud risks and bring them to your attention. When every dollar counts, do not let trackable fraud stunt your restaurant’s growth.
6. Potential Growth
Outsourcing your books is never a one-size-fits-all. Most accountants offer various packages and options. This means as your restaurant becomes more successful and grows, your accounting can scale with the growth. The last thing you need is to train a new employee to handle the books while you are going through a busy growth period. You will also not need to worry about bringing in a new employee who is not familiar with your business. Lastly, your accountant may provide helpful information that will assist you in how to keep that growth happening.
7. Payroll Headaches
Payroll is so often a hassle for any business. With multiple taxes and deductions, it is another issue for you as a restaurant owner to handle. Although accountants do not have to handle payroll, many can help you find a payroll company that will work seamlessly with your accounting software. With payroll being outsourced and double-checked by your accountant, you are losing one of your potential biggest headaches while saving you even more time.
Learn More About Our Accounting Packages
No matter the restaurant, there is a compelling reason for each of them to consider outsourcing their accounting to a trusted, experienced accountant. Save time and money, streamline info and processes, and have a second set of eyes watch for fraud and waste.
Want more information including
packages and options for your restaurant? LDG Accounting Services would be happy to discuss your options.
Contact us today.
