Outsourcing is one of the big buzzwords in the business world these days. Even the biggest companies are turning to outsourcing because it allows them to get the benefit of expertise at a lower cost. Accounting services provide a good example of the benefits of outsourcing.
When you are in the restaurant business, it’s because you’re a great restaurateur. You definitely aren’t an accountant. Your business probably isn’t big enough to keep a full-time accountant busy, and even if it is, it’s often cheaper to outsource to a specialized accounting company. That’s because an accounting services company will have clerks to do most of the legwork with the qualified accountant overseeing the result.
The final alternative is to learn accounting yourself. But with a restaurant to run, you just won’t have enough time to spend on it, and if you make any mistakes, it could prove costly for your business.
Here are our top five reasons for outsourcing the accounting work your restaurant business generates.
1. Achieving a High Level of Accuracy
If you aren’t an expert, balancing your books so that you know where all your money comes from and where it goes can be a headache. As a restaurateur, you are also a businessperson, and profit is your goal. Without accurate records, you simply won’t know whether your business is on track.
Errors in your accounts have serious consequences. Apart from getting you into trouble if your taxes are audited, they can spell the end for your business. For example, you need cash flow to operate. If your projections are wrong, you could find yourself in a position in which you cannot pay your creditors or employees.
2. Avoiding Penalties During VAT Season
Late submissions or incorrect submissions aren’t things that tax authorities have patience with. All too many businesses start working on their taxes just before the submissions are due. They end up paying penalties because they aren’t ready in time, or they rush things and don’t claim all their deductibles. Either way, they lose money.
Professional accountants will work on your restaurant’s financial records every month. At the end of the quarter, it’s just a matter of final verification – no last-minute VAT-time crunch!
3. Saving on Processing Time
A skilled person will always complete a job more quickly and accurately than someone who is unsure of how to go about the task. Plus, with an accounting firm on your side, there are extra helpers working on your accounts. You get results fast.
Put the time you save to good use. After all, your restaurant business needs your expertise!
4. Access to Advanced Software
Accounting software isn’t cheap, and it usually takes a lot of costly training before you can use it properly. But your restaurant’s accounting firm already has software to help them and the expertise they need to use it. You’re saved the outlay of buying expensive software packages but have access to all the features and benefits that come with them.
Not sure what to do with all those analytics? Simply make an appointment, and we’ll go through them with you. You’ll gain valuable insights that will help you to run your business more efficiently.
5. Reduce Risk
As an entrepreneur, you’re a risk-taker. Your capital is on the line, and you’re using it to make profits. Your success or failure won’t be measured by the food your serve or the ambiance you’ve created. If there are flaws in your financial management, the best food and the nicest place to dine won’t be enough to keep your business afloat.
It all comes down to the numbers. Are you getting a worthwhile return on investment? If you aren’t, what’s the problem? Find out whether your restaurant’s capital is being deployed efficiently with the help of professional accountants.
We don’t just do your books for you. We also analyse the results and point out any problem areas you should attend to. Can you cut expenses? Can you grow sales? The answers lie in the figures.
You also reduce the risk of being cheated or paying the price of someone else’s errors. Are your suppliers providing correct account information? They can make mistakes too! Your accountant will pick up any discrepancies.
Spend More Time Doing What You Love
Keeping track of your restaurant’s finances on your own will eat up valuable time that you could have spent focussing on what you’re really good at: running a successful restaurant business. Even if you work on your administrative tasks in your free time, you will be pouring energy into a task in which you are not particularly skilled, and which isn’t your passion.
Outsourcing accounting services helps restaurant businesses to focus on their strengths while highly skilled accountants take care of their financial records. Isn’t it time you got started? Give us a call today!