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Checklist for Selecting Restaurant Accounting Services

By Analytix Editorial Team

April 22, 2019 0 Comments
Checklist for Selecting Restaurant Accounting Services

Restaurant accounting is a specialized activity that often requires more attention than accounting for other industries given the high volume of transactions throughout various parts of the day.

If you choose to operate a restaurant, what does that indicate about your passion? Probably one of the following two things:

  1. You love to cook; you probably also cook very well and you have had some professional training
  2. You love to run a business; your heart lies in establishing a successful business

Most importantly, you most likely did not enter the restaurant business due to a love of accounting and bookkeeping. This holds true even if you are a trained accounting professional or a CPA yourself.  You probably started the business to answer to your creative side.

What Do Restaurant Accounting Services Entail?

Technology makes business easier by making communications transparent and data accessible more easily and in a secure manner. As restaurants continue to grow their online presence, and as more and more businesses shift to cloud computing, the need to embrace technology also grows. Online reports indicate that restaurant point of sale or service (POS) is expected to grow rapidly, both domestically and internationally. In 2016, the global restaurant POS market was estimated at $10.17 Billion. By 2025, the expected net worth is estimated to reach $24.7 Billion. When optimized, the restaurant POS provides important information on customer experience, kitchen details, menu metrics, etc. From an accounting perspective, the POS yields valuable data on all transactions, thus helping to track expenses and identify ways to reduce them.

Furthermore, the effect of technology is such that almost 50% of diners chose restaurants based on review websites, not just based on recommendations from friends or family.

When Choosing Restaurant Accounting Solutions

Accounting and bookkeeping are key to business profitability and sustainability. This applies to all businesses, regardless of the industry in which they operate. Handing over a few key, non-core services to accounting professionals not only helps businesses reduce the load on existing resources, but also ensures that the work performed is high quality and professional. Following are some considerations:

  • Domain Expertise and Number of Services Offered: Choose comprehensive accounting solutions when outsourcing. This enables the service provider to obtain a larger view of the business and help provide relevant assistance where required.
  • Expertise of the Staff: What is the expertise of the service provider’s staff? Are they friendly and approachable? These qualities matter if and when the business faces the need for troubleshooting.
  • Access to Real-time Data: Tools such as online portals make critical data accessible, generate valuable reports, and enable informed decision-making as and when required. All of these features help businesses by providing immediate access to relevant information, enabling faster decision-making. They also promote security, trust and transparency through authorized access to key people in the business.
  • Pricing and Affordability: Pricing is key to outsourcing, especially if the business is operating on a tight budget, which is the case with most startups and small businesses. It makes sense to choose providers that offer affordable and reasonable services.
  • References and Testimonials: In an age of online reviews and feedback, it is not too difficult to find references and testimonials, especially for businesses that have been around for a while. For restaurant startups and small businesses, it is essential to evaluate providers based on factors such as response time to queries, ability and timeliness to trouble-shoot issues, report generating abilities, and response time, as well as overall understanding and knowledge of relevant updates.

Checklist of Documentation Required by Services Providers for Smooth Operation

For any outsourcing to prove effective, it must address the firm’s unique needs. There is rarely a one-solution-fits-all formula.

Here is a list of documents that can enable a service provider to gain better clarity on the needs of your firm. The information contained in these documents can help a business provider understand the business better and tailor solutions accordingly, for optimum benefits. Furthermore, as a business progresses, the information provided here will foster a smoother transition.

  1. Essential business information
  2. Old financial records
  3. Any debt agreements
  4. Tax returns from previous years

At Analytix Solutions, we provide our restaurant accounting services clients with features such as a restaurant accounting portal that make information accessible, including customized reports for business owners. Our accounting services are comprehensive and include IT business solutions as well as data management.

If you would like to learn more about how we work, contact us for a risk free complimentary analysis of your restaurant accounting system.

If you work in the restaurant business or hospitality industry, we would enjoy hearing from you. Let us know in the comments section below how you manage your business accounting.

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