Every business whether it is big, medium or small needs to maintain its accounts and ensure that the statement of accounts is always balanced at the end of the day, month and year. While big businesses cater to this need by employing the services of a chartered accountant to ensure good accounting, for the medium or small businesses this becomes an expensive proposition. Thus accounting software like QuickBooks helps ensure the maintenance of the company accounts yet remain within the budget of the company.
This accounting software is also quite versatile and can be configured to satisfy the specific needs of several business sectors like manufacturing, hospitality like restaurants and hotels, the education sector, sales and marketing companies, etc.
QuickBooks for Restaurants
Running a restaurant is no easy business for it includes factors, each of which needs individual attention. Since managing a restaurant requires juggling a multitude of functions all at once, it is difficult to ensure complete management of all the aspects.
Thus the implementation of accounting software offers a lot of benefits and helps smoothen the daily running of restaurants by:
Enabling inventory tracking
Since food and beverages account for a large part of the expenses incurred in a restaurant, it becomes very important to keep a track of the inventory. Restaurant inventory is perishable and thus orders placed for the same need to be closely monitored so as to reduce surplus which might result in wastage. There are many different types of inventory management systems employed by restaurants like:
Single period system for inventory management which maintains the accuracy of inventory by enabling frequent counts of the products in stock,
First-in and first-out method wherein only when the older inventory is utilized is the new inventory touched etc.
These methods of inventory management all require diligent record-keeping and this becomes easier by the use of the Quickbooks accounting system. By taking into account past trends related to previous sales, inventory purchased and utilized and revenue generated, it becomes possible to ensure better inventory management and reduce loss suffered due to wastage of perishables. Download your quickbooks and it helps generate these reports thereby providing the restaurant owners with a better understanding of their business.
Monitoring sales of beverage and food
This accounting software can be used to generate sales reports after sales have been stopped for the day. The Quickbooks POS or point of sale system further helps to create reports which can be matched with the daily sales report so as to remove any errors in the same. These reports help to accurately determine the food and beverage inventory that has been used to make sales on a particular day and reconcile the same with daily revenue generated and settlements that need to be made. Reconciliation such as this, when carried out daily using Quickbooks, enables the owners to understand the health of their restaurant business and also come up with decisions that have a positive effect on the overall profits of the same.
Managing employee schedules
This is the backbone of every restaurant for staff management can make or break the reputation of any business in the hospitality sector. For small restaurants, the effect is even more direct since short-staffed restaurants definitely result in long queues with irate customers threatening action and damaging the reputation of the same. However, Quickbooks with its ability to incorporate third-party software applications makes it easier for Quickbooks to work in sync with employee scheduling thereby enabling seamless reporting with regards to:
The number of employees that need to be employed,
The expenditure incurred vis-a-vis the sales generated,
Time-off requests submitted and accepted,
Employee work-hours especially if employees consist of daily payment staff,
Other entitlements of the employees,
Creation of an appropriate and effective weekly schedule of work for individual employees etc.
Enables effective communication
Alerts, communications, notifications that need to be sent to employees can be easily done with the help of the improved e-mail features which have been incorporated in the recent versions of QuickBooks. This has made it convenient for the employee to communicate with the appropriate authorities with regard to issues pertaining to both professional and personal requirements. This accounting software makes it equally easy for the management to post requirements, send schedules, etc., to the concerned people individually as well as in batches, if so required.
The greater the number of employees, the complicated the payroll process gets. This is because the calculation of the salary involves other factors like:
- The number of work hours put in by individual workers,
- The targets achieved and the timelines attached,
- The incentives that an employee is likely to get,
- The number of leaves or time-off that he has applied for and taken after permission,
- The number of paid leaves that a person is entitled to and the ones that he can encash,
- Taxes deductions, if any, etc.
Thus payroll transactions are not only complicated and lengthy, when done manually they are also inaccurate in most cases. However, with the help of the accounting software, payroll calculations become easy and accurate thereby ensuring that the employees stay happy and satisfied. This again translates into better work output and finally better profits.
Operating and other miscellaneous expenses
There is so much more to running a restaurant. There are so many expenses involved by way of establishment cost, insurance, property, and other statutory taxes, licenses and permits, repair and other maintenance work undertaken, labor expenses, etc. Other miscellaneous and secondary expenses include bills paid using the company credit card, internet and telephone charges, bank fees, entertainment charges, etc. With so many expenses to account for, it would indeed be a big hassle to keep up with them without the support of good accounting software like Quickbooks. In fact, it would be easier to close business than to have to deal with so many expenses and overheads manually.
The creation of the balance sheet is another requirement that accounting software like Quickbooks fulfills. In fact, it also ensures that the accounts on both sides are balanced by creating reports for accounts receivables as well as the expenses and overheads that are incurred when running a restaurant successfully. Thus accounts receivables as well as accounts payable reports that are generated help the owners to understand their collectibles especially if they are more than 30 days or 45 days old.
This feature is of great help to restaurants. When a bill for a customer is made, it needs to contain certain statutory requirements like the division of taxes, the charges that are levied, the price of the products ordered, etc. With a number of recipes served and people demanding food as per their convenience, it is difficult for a person to remember the price of everything and make an accurate bill or receipt based on the same. On the other hand, POS accounting software like QuickBooks makes it easy to feed the relevant data and get an accurate bill generated within minutes.
Implementing this software also makes it possible for all work to get over within a short period of time. Thus the time saved can be dedicated to other useful hands-on work which will ultimately benefit the sales and revenue of the restaurant concerned. The QuickBooks accounting software is thus, a mandatory addition that needs to be made for the smooth functioning of the restaurant.
Originally posted 2020-03-31 21:48:27. Republished by Blog Post Promoter