6 Ways Restaurant Accounting Software Compares to Basic Accounting Software

This article explores six ways restaurant management software, also known as restaurant accounting software, can influence your business.

Customer Support from Industry Experts

The importance of customer support should not be underestimated. Receiving help from a professional who not only understands your software but also has industry expertise can be highly advantageous.

When using industry-specific software, you're more likely to interact with customer service representatives who have real experience in your field.

Although companies like Quickbooks provide 24-hour support, they find it difficult to address every industry they serve, as their software isn't specifically tailored.

Working with a company that employs professionals with industry experience can make a significant impact.

Managing Your Inventory: Food and Alcohol

Inventory management in a restaurant is more intricate than in typical retail environments. Features specific to restaurant inventory management are crucial for success and differentiate restaurant accounting from general accounting.

Your restaurant accounting software should offer the following inventory capabilities:

• costing menu items and recipes

• monitoring changes in inventory item costs

• tracking waste and spills

• tracking inventory items and setting par levels

• counting inventory in partial amounts and different units of measure

• inventory reports tracking all the above, including usage versus purchase

  
  

Labor cost is a major expense for most restaurants, typically ranging from 25-35%. Managing this cost is crucial for profitability.

With restaurant-specific insights, your accounting software should aid in labor budgeting, industry averages, scheduling, cost tracking, and financial reporting.

Integrating with Other Restaurant Systems and Vendors

For better insight and efficiency, your accounting software should integrate with your point-of-sale system and, in some cases, your vendors.

This integration offers immediate actionable insights by consolidating data for financial reporting.

Enhanced Efficiency with Multiple Users

Multiple users can operate on the same secure platform. For instance, the bar manager accesses bar inventory features, the kitchen manager accesses kitchen inventory features, the general manager accesses inventory and scheduling, and the accounting team accesses accounting features.

All key personnel use the same software to achieve the common goal of increasing profits!

Restaurant-Specific Analytics

Analytics are often overlooked but are crucial in restaurant operations. Data such as table turns and customer demographics are common insights from POS or reservation systems, but accounting analysis provides a new data perspective.

Modern accounting solutions offer insights into your restaurant's financial health. Monitoring key performance indicators (KPIs) like food cost percentage and sales per labor budget versus schedule versus actual becomes more straightforward.

For example, if your food cost percentage exceeds your breakeven budget, you can take immediate actions like analyzing portion sizes, renegotiating with suppliers, or reevaluating your menu. Accounting data helps owners respond to changes, enhancing decision-making.

Begin Transforming Your Restaurant's Financial Future

In a competitive industry, having the right tools is essential for clarity and informed decisions. Don't let outdated practices limit your restaurant's potential. Embrace change to unlock greater profitability!