Can restaurant accounting software help a business survive and thrive? The failure rate in restaurants is high. This is often not due to the menu or even the volume of business. It’s often cost related. This is how a boring accounting system can help.
Do you know the cost of each menu item?
Let’s face it, cost control is key to surviving in the restaurant business. Whether you make or lose money on a menu item can make the difference between success and failure. You really need a system to know where your winning picture is every day. Responding to cost changes a month or even a week may be too late. You need accurate cost figures on a daily basis to make sensible decisions. This is a must from your accounting system.
Have seller prices gone up, down, or sideways?
How do you know when your ingredient costs change? Do you get some sort of signal when material costs change? You need such a signal. Are you getting the best prices from your suppliers? This can be as simple as ordering a slightly different quantity to receive a volume discount. how would you know
Have you ever run out?
Inventory levels for a restaurant are critical. Run out at the wrong time and it will cost you money. Missed sales are gone forever. Inventory management is almost impossible in larger companies without automated continuous inventory management. Otherwise, your periodic inventories will be out of date by the time you check, and then you can make mistakes. Automated inventory is a stress reliever and time saver.
Where do you make most of your profits?
you guess It may not be where you think it is. Track costs and sales by menu item and you’ll know, but how do you do that? Really only with the right accounting system can you keep an eye on the costs on a daily basis.
As tedious as it is, the right restaurant accounting software can be a key to surviving in the hospitality industry. It’s a shame, it’s true, but cost control is a must. The only way to have current and accurate information to make decisions is with some automation. Just the reduced stress that comes from knowing where you are can pay for the right software.