As a restaurateur, paying attention to critical business processes is the key to improving the bottom-line. At the end of the day, a restaurant is a business. If you don’t get customers in, you won’t be able to survive, let alone thrive. It takes far more than a menu of delicious items and aggressive marketing, coupled with discounts and deals, to boost profitability. The key to this is effective restaurant finances. It is quite likely that while you have a thing for food, numbers aren’t your best friends. Hence, it can be difficult to keep track of them, especially when there is an endless trail of numbers to deal with.
You have to be on top of your restaurant finances, including the restaurant payroll and restaurant accounting. The good news for you is you can find effective software to help you streamline restaurant bookkeeping and get a clear idea of how each penny is being spent and earned. Yet, at the same time, you have to make optimal use of the software you invest in. The great thing is most restaurant software is designed to be easy to use, so you won’t have a hard time understanding how they work. But the more significant part is making sure the software includes a few specific features:
Records the Daily Sales and Expenses
This one is a no-brainer as far as restaurant finances is concerned. If you don’t track sales, it will be difficult to work out how much money your restaurant is making. At the same time, it is crucial that the software records the daily expenses as well, particularly the food cost, so you can get a clear picture of how much you have to spend to make a certain sum of money. Using this information can help you project future performance and determine trends and anomalies, which you can use to strategize and plan for the future.
For instance, if a certain item on your menu has never been ordered and you have to keep the ingredients in stock regardless, it would be better to excise it from the menu altogether. This way, you can save money on inventory and also add a separate item to the menu in its place. In the same way, items which sell well have to be planned for in advance, which means you have to order the necessary ingredients ahead of time. This is where an effective restaurant accounting software can help you streamline the supply chain of your restaurant.
Records Labor Costs
After food, the most significant cost for any restaurant is labor. Without the right people on board, your restaurant cannot function optimally. You need the right chefs, servers, and even managers who can control the restaurant operations. Effective restaurant financial management entails keeping track of labor cost and therefore, it is imperative that the software you select records labor cost as well. This will not only help you determine the best performing employees and reward them but you can also figure out which employees need a helping hand to lift their performance.
The most significant impact of this will be on the restaurant payroll. As with any other business, there are discrepancies on a regular basis in restaurant payroll as well simply because the labor cost hasn’t been tracked effectively. By investing in quality software, you can eliminate a majority of the problems you face with regards to restaurant payroll.
Records and Displays All Data
Last, but not the least, the restaurant bookkeeping you invest in should provide a clear picture with regards to each and every transaction conducted by your restaurant, whether it’s a sale or an expense. From the supply to sales, each and every bit of data should be logged by the software and it should be able to display the data in the form of charts and reports, in any shape or form as you need, so you can gain effective insight into the performance of your business. Otherwise, there is little benefit of software which collects data but does not show it to you effectively.
Using the records, charts, and reports displayed to you, you can make decisions regarding the future of your restaurant, which could determine whether it thrives or not in the future. To put it simply, the software should tell you everything you need to know about your restaurant.