Updated
Blogs

Streamlining Restaurant Operations: The Power of Automating Accounting Processes

Share:

The Tablespoon team was at the Sage Partner Summit last week. It was a 3-day, in-person event designed exclusively for Sage's partner community. The entire conference was a buzz over automation and AI. Practically every session had a theme of AI and technology. One of the standout sessions our team attended was Aaron Harris' keynote. Aaron Harris is Sage's CTO. He presented the scale of opportunities within the accounting industry facilitated by AI generative tools. Aaron stated that generative AI will impact 10 to 50% of work tasks for 80% of the US workforce. Occupations with the most significant opportunity are accountants, tax preparers, business analysts, and mathematicians.

It's unbelievable how generative AI has impacted every industry and job function. This includes the restaurant industry. Recently, in our blog Automation in the Restaurant Industry: My General Ledger is Smarter than Yours, we stated, "According to Square 2022 Future of Restaurants, 36% of restaurants say they upgraded technology to help their business. They also reported that as many as 62% of restaurants say that automation would fill critical gaps in managing orders placed across delivery apps, online and at the restaurant. In addition, CFOs in restaurant groups are seeing the transformational benefits of AI, automation, and related innovations to finance and accounting, planning, budgeting, and forecasting with greater accuracy, speed, and confidence."

Wrapping up the session, Aaron called out ChatGPT and outlined a few examples of how he's using it. We've dabbled but been behind the curve of how others have been using it. We thought we'd have a little fun with it because it was talked about so much at the Sage Partner Summit. We asked ChatGPT how AI is impacting restaurant accounting. Below is its response. We passed it around the company, and it's impressive (and scary) how well it captured the subject.

Streamlining Restaurant Operations: The Power of Automating Accounting Processes

In today's fast-paced world, restaurants face numerous challenges in managing their operations efficiently. While the focus is often on creating an exceptional dining experience and serving delicious food, it's essential not to overlook the crucial role of accounting in running a successful establishment. With the latest advancements in technology, restaurants now have the opportunity to streamline their accounting processes through automation. In this blog post, we will explore why restaurants should embrace automation and highlight key areas that can benefit from it.

Efficient Bookkeeping

One of the fundamental aspects of restaurant accounting is bookkeeping, which involves tracking financial transactions, including sales, expenses, and inventory. Many restaurants choose to streamline this process by outsourcing bookkeeping services, ensuring professional management of their financial records while freeing up time to focus on operations. Automating bookkeeping processes using accounting software can further save significant time and effort. By integrating point-of-sale (POS) systems with accounting software, restaurants can automatically record sales, categorize expenses, and update inventory levels in real time. This integration reduces the chances of human error, eliminates manual data entry tasks, and ensures accurate financial records. Whether managed in-house or through bookkeeping services, maintaining precise financial records is essential for long-term business success.

Streamlined Payroll Management

Managing employee payroll can be a complex and time-consuming task for restaurants, particularly when dealing with hourly wages, tips, and overtime. If your restaurant group operates across multiple states, managing varying labor laws adds in another level of complexity. Automating payroll processes can simplify this task and minimize errors. Payroll software can calculate wages, deductions, and tax withholdings accurately, generate pay stubs, and even facilitate direct deposits. Additionally, automated payroll systems can ensure compliance with labor laws, monitor employee hours, and generate comprehensive reports for easier analysis.

Inventory Control

Controlling inventory is crucial for restaurants to minimize waste, optimize stock levels, and manage costs effectively. Automating inventory control processes can help streamline ordering, receiving, and tracking of ingredients and supplies. By integrating inventory management software with the restaurant's POS system, it becomes easier to track inventory levels, set up automatic reorder points, and generate reports on usage and wastage. This automation reduces the chances of stockouts, prevents over-ordering, and enables better forecasting for future inventory needs.

Streamlined Accounts Payable and Receivable

Managing accounts payable (and receivable) is another critical area where automation can significantly benefit restaurants. Automating accounts payable allows restaurants to streamline invoice processing, track payment due dates, and optimize cash flow. By implementing electronic payment systems, vendors can be paid efficiently, and manual paperwork can be minimized. On the accounts receivable side, automation can help generate and send invoices promptly, track payment collections, and manage outstanding balances. Automating these processes improves accuracy, reduces delays, and enhances financial visibility.

Financial Reporting and Analysis

Generating financial reports and conducting analysis is essential for restaurants to make informed business decisions. Automation can simplify this process by consolidating data from various sources and generating real-time reports. With accounting software, restaurants can create custom reports, track key performance indicators (KPIs), and gain insights into sales, costs, and profitability. Automated reporting enables owners and managers to identify trends, make data-driven decisions, and identify areas for improvement.

In an increasingly competitive industry, restaurants must leverage technology to optimize their operations. Automating accounting processes offers numerous benefits, including increased accuracy, time savings, and improved financial visibility. By embracing automation in areas such as bookkeeping, payroll management, inventory control, accounts payable and receivable, and financial reporting, restaurants can focus more on providing exceptional dining experiences while ensuring efficient and profitable operations. It's time for restaurants to embrace automation and harness its power to thrive in today's dynamic business landscape.

Do you want to learn more?

At Tablespoon, we serve up accounting and technology solutions to help restaurant and hospitality companies thrive in an ever-changing environment.

Restaurant KPIs