Restaurant accounting is all about concrete principles, accurate data, and business intelligence.
Investing in clear and actionable steps will help your franchise, or restaurant grow. Believing in misconceptions without doing your own researching can lead to missed profitable opportunities.
Study the myths outlined below and discover how you can leverage outsourced restaurant accounting for growth.
Myth #1 Outsourcing my restaurant accounting will hurt my internal team.
Restaurant accounting can be a tricky business. This myth isn’t part of that trickiness. An outsourced vendor, if it’s the right choice for your business, will not hinder your internal accounting team or threaten their job security.
In fact, an outsourced vendor can help take some of the pressure off your team by providing the financial solutions they need in a opportune way.
There are times when it is beneficial for the accounting vendor to supplement your internal team.
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For example, if you’re short-staffed, an outsourced vendor can pick up the slack. Or if you’re in the middle of a busy season and your team is struggling to keep up, an outsourced firm can help ease the burden. In addition, an outsourced vendor can provide valuable training and development opportunities for your team members. They can actually become a boon for your internal team.
By outsourcing restaurant accounting, you can free up your internal team to focus on more important things – like running the restaurant!
Myth #2 Long-term partnerships aren’t possible with outsourced accounting services.
Put simply; this is not true. Your restaurant accounting service does not have to be a temporary or limited solution like some restaurant owners who use outsourced accounting for stressful times like tax season or end of month reconciliations.
This approach can be useful but establishing a long-term partnership is not only possible but advisable.
Longevity will be to your advantage.
Here are a few best practices to keep in mind as you build and maintain a long-term relationship with an outsourced accounting vendor:
- Be clear about your expectations. When you first start working with a vendor, take some time to sit down and discuss what you expect from the relationship. This will help ensure that both parties are on the same page and avoid any misunderstandings down the road.
- Remember that communication is key when working with an outsourced accounting vendor in the restaurant industry. We operate under tight schedules and very specific restraints. Ensure you both stay on the same financial page.
- Remember that an outsourced vendor is a business, just like your restaurant. They are looking to build a long-term relationship with you as well. Treat them with same respect as any other vendor and you will be well on your way to building a strong, long-lasting relationship.
Myth #3 We will get trapped into a long-term agreement.
Reality: Yes, an agreement will be most likely be involved. But it doesn’t have to be a disadvantage.
How can you make the most out of your agreement with your vendor?
Be clear about your expectations for this partnership.
Investigate their turnaround time, their stance on ad hoc work, and their online reviews.
The key here is to make sure you’re partnering with the right outsourcing fit. We’ve warned against one-size-fits-all accounting before. Find your fit and move forward with outsourcing.
Myth #4 Outsourcing restaurant accounting means we’ll lose control over financial operations.
Some concern here is warranted. However, if you choose the right outsourcing solution, you won’t be losing control, and you’ll be gaining an expert partner.
Outsourcing will give you more control through up-to-date reporting and management that your own internal team might not be able to keep up with.
After all, you get to choose the level of service you want, and you’ll receive help with the specific areas of accounting your business struggles with, like taxes, loan payments, financial statement processing, operations reporting, and more.
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You’re in control of your finances, and you’ll keep it with an expert, scalable partner.
Myth #5 Outsourcing will result in lower quality accounting functions.
In a word, no. If anything, a best-in-class outsourced restaurant accounting service will improve the quality of your accounting functions in several key areas.
An outsourced team can save you time and money by providing you the support and strategy your internal time couldn’t or didn’t have time to supply.
We mentioned this earlier, but the right vendor will be able to work with a broad range of restaurant accounting software platforms, and we can also bring industry-leading options to the table.
A primary purpose of the accounting function is to present accurate data so that decisions can be made intelligently. Outsourcing your accounting enables access to organized and accurate financial data.
Instead of a quality dip, you’ll see growth and optimization from your accounting functions.
Get restaurant accounting help from experts.
Believing these myths really aren’t helpful. However, understanding them can help you avoid costly mistakes and perhaps convince you to invest in an effective outsourced restaurant accounting solution.
At Global Shared Services, we’ve spent over a decade dispelling the myths above in restaurant accounting. Get in touch with us today to learn more about how we can help.