Restaurant Accounting Software

A reliable, comprehensive, and flexible restaurant accounting software program is a must for anyone who wants to succeed in this very competitive industry. Though a program can cost thousands of dollars, most restaurateurs believe the right program is worth every single penny. People who love to cook and create delectable dishes usually aren't interested in the nitty-gritty details of accounting. But the nitty-gritty money details must be tended to with all the attention one would give to a complex souffle so that the business doesn't fall financially flat. An appropriate program, especially one that includes a restaurant payroll software component, can be a great time-saver, allowing the restaurateur to browse through cookbooks and menus instead of accounting manuals and ledgers.

In an industry that sees many new start-ups failing in the very first year, the wise entrepreneur will want to take advantage of every possible tool, including restaurant accounting software, to ensure success. Though a restaurant is a difficult venture to get off the ground, the determined entrepreneur can beat the odds with careful planning and wise decision-making. According to industry experts, people are dining out in ever greater numbers. And those who aren't dining out are taking out. The secret seems to be finding a particular niche and marketing to that segment of the population with quality food and quality service. People today don't want to spend a lot of time in their kitchens and have the income, compared to former generations, to zip through drive-thrus for a quick, already prepared lunch or supper. Of course, it wasn't always that way. Once people spent most of their waking hours growing, hunting, or fishing for daily sustenance. All four of the Gospel writers tell about the time when Jesus fed a great and hungry multitude. Here is the account of Matthew, the tax collector who became a disciple: "And he [Jesus] commanded the multitude to sit down on the grass, and took the five loaves, and the two fishes, and looking up to heaven, he blessed, and brake, and gave the loaves to his disciples, and the disciples to the multitude. And they did all eat, and were filled: and they took up of the fragments that remained twelve baskets full." (Matthew 14:19-20)

Most successful businesses begin with a business plan that outlines the venture's target market or niche, start-up expenses, and financial forecasts. Researching various restaurant accounting software programs should be part of the business planning process. Established restaurants can also benefit from advanced technologies that may improve their current processes. For example, a new restaurant payroll software program may include many features that weren't available even a year or so ago. Because technological changes can occur so quickly in the software industry as a whole, business owners are well-advised to choose software companies that provide both customized features and upgrade availability.

There are three components to most restaurant accounting software systems, namely, the point of sale (POS) feature, the middleware, and the financial package. However, some innovative companies are integrating their products to eliminate the middleware feature. Generally speaking, though, the middleware acts as a type of middleman that takes financial information from the point of sale component, processes it, and then imports it into the appropriate areas of the finance component. Such software assists in managing food and beverage inventory control, track daily fixed expenses, and brings to light any hidden costs of running a dining establishment. A good accounting program categorizes the sales data so that the restaurateur can easily determine which entrees or which desserts are most popular with customers. It will also provide modules that include additional income streams, such as catering or the sales of merchandise. Perhaps the restaurant owner has selected a cartoon mascot that is used in almost all the advertising. A stuffed version of the mascot may be available for purchase at the cash register. These sales will need to be tracked separately from the main business of the dining establishment.

A competent restaurant payroll software package tracks employee compensation. For example, the labor data should be separated into the appropriate departments, such as management, chefs and cooks, the wait staff, host and hostess, and the dishwashers. In addition, the wages and benefits for each employee need to be tracked and maintained. Software designed specifically for restaurants will keep track of hourly wages and salary schedules as well as any commissions or tips that may be due to each individual employee. Appropriate deductions also need to be tracked. In addition to federal, state, and local taxes, the program needs to track deductions for such items as health insurance, union dues (when applicable), investments, and perhaps child support or other garnishment amounts. A great feature offered by some programs allows the payroll manager to file and pay government taxes electronically. These features help the payroll manager to know that the numbers have been calculated correctly and provide confidence that the government is receiving the exact amount that is owed. Still another benefit is the tracking of accrued vacation and sick leave information. A small business owner may find it more economical to hire a payroll service, at a flat monthly fee, rather than taking care of this aspect of company ownership.

Many industry experts suggest that a restaurant owner engage the services of a consulting firm that can help analyze the business plan and make recommendations to increase the possibility of launching a profitable venture. At the very list, a financial expert should be consulted, especially one who can make recommendations regarding restaurant accounting software programs, including restaurant payroll software. This trained individual can provide assistance in analyzing the numbers on profit and loss statements, income statements, inventory control reports, and sales analysis and forecasting documents. With the help of a well-written business plan, appropriate software, and expert assistance, the aspiring entrepreneur may soon be celebrating the restaurant's first anniversary with a profit.

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