5 Key Benefits Of Outsourced Restaurant Bookkeeping Services

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    15 Feb 2023

    5 Key Benefits Of Outsourced Restaurant Bookkeeping Services

    Few businesses are as hectic as a restaurant. Long hours, high overhead, wasted ingredients, and difficulty making profits are some barriers to success for restaurant owners. While you run the front and back of the house tirelessly focusing on the dining area, planning menu and specials with staff, and ensuring that perfect taste, ambiance, and experience to the customers, bookkeeping, and accounting are bound to become your last priority.  Whether you've been in the restaurant business for a while, opened recently, or are just starting, the need for professional bookkeeping is alike. A quick online search suggests that 60% of new restaurants fail within a year of establishment and 80% fail within five years. One recurring reason for the same is financial management. Unfortunately, once you are behind on your restaurant accounting, it is difficult to catch up. The profit margins in the restaurant industry are too tight to let your bookkeeping slip. If you are not watching your finances closely it may be too late to fix problems by the time you identify them.  Simply assigning the bookkeeping to an employee who fulfills other functions is impractical, even if you are considering yourself for the role. It is time-consuming and often stressful for those with little or no experience. Restaurant employees are employed for particular positions that all have to do with food and customer service, not numbers and accounting. Using a professional bookkeeping service can help save costs in the short term and stabilize your restaurant’s finances in the long term. Hiring for bookkeeping tasks could be costly, especially if you are just starting as it would be difficult to know the income you will be making in the first few months of operations.  Here are five key benefits why you should consider outsourcing bookkeeping services for your restaurant business. 
    • Access to Bookkeeping & Accounting Expertise
    As a restaurant owner, you need to concentrate on what you do best - keeping your customers happy. This includes ensuring the quality of food and the level of service is top-notch. Industry knowledge, level of expertise, and ability to overcome obstacles are critical factors in the success of your restaurant business. While you may be an expert at growing your restaurant, chances are you're not as knowledgeable about bookkeeping and accounting.  Outsourcing your bookkeeping helps ensure that your restaurant's finances are in proficient hands. When it comes to dealing with budgeting, accounts payable and receivable, or financial reports, a professional bookkeeper can assist you and provide valuable insight into your restaurant industry matters.
    • Improved Visibility To Your Restaurant’s Financial Performance
    The restaurant sector is known for its tight profit margins. Outsourcing your bookkeeping to a team of trained professionals like Chartered Professional Accountants ensures that your restaurant's financial records are always accurate and up to date. This gives you visibility into how your business performs and allows you to track your expenses, revenue, and cash flow. Outsourced bookkeepers can provide you with customized reports based on your specific needs, allowing you to make more informed business decisions. They can also assist you during tax season by calculating your sales tax liability and remitting it on time to avoid costly penalties.
    • Saves a significant Amount of Money & Time
    Hiring an in-house bookkeeper can be pricey, especially when you factor in pay - payroll taxes, employee benefits, and wages. Outsourcing your bookkeeping can provide you with more value for your money and access to expertise without the added payroll costs. It also means you won't have to deal with turnover or hiring costs, and you won't have to train or manage new employees. Outsourcing allows you to save the time it would take you to do bookkeeping, allowing you to focus on your business growth.
    • Streamline Payroll Processing 
    As a restaurant owner, paying your staff on time and correctly is one of your key responsibilities. Paying employees may appear to be a straightforward operation, but it is rather complex. Every employee will have different pay and hours of work, depending on their experience and role - whether they are at front of the house, back of the house, or managing operations. Also, you may have some employees who get paid an hourly wage while others get a salary. Plus, you’ll have to account for tips as well.  Employee payroll is subject to regulations on tip reporting, state unemployment, payroll taxes, social security, and medicare taxes. Restaurant operators that manage their payroll face a high amount of exposure since submitting payroll taxes erroneously or late can result in severe fines and create significant liability issues. Outsourcing the payroll is a surprisingly low-cost way to assure consistency and dependability in bookkeeping. Outsourcing your payroll process to a professional payroll provider, like CJCPA, not only ensures that you comply with requirements, but also saves you hours of work each paid month.
    • Knowledge of software updates aligned with regulations 
    POS Systems, accounting, and bookkeeping software are ever-evolving and aligned to your business growth, industry, and CRA regulations. While new software features are frequently introduced, keeping up with them while running your restaurant becomes nearly impossible. When you outsource your bookkeeping, you gain access to the most advanced accounting software and tools, which are specially designed to automate your accounting process while keeping your books in order.  The experts are familiar with these updates and can help adopt changes faster with accuracy.  Hire CJCPA Professionals  Running a restaurant is hard. Starting one is even more difficult. Hiring professional bookkeeping services for restaurants in Canada can save both time and money. Searching for qualified accountants is time-consuming as you may need a team for managing your Restaurant’s Accounts. Instead, outsourcing it to a specialized firm like CJCPA would be a less expensive & more effective alternative, enabling you to focus on the growth and management of your restaurant. Interested in learning more about restaurant bookkeeping services and how it can benefit your business? Get in touch with us at 604-560-8020 or jas@cjcpa.ca Today.  
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