Why Outsourced Accounting Is Essential for Modern Restaurants

Running a restaurant is a culinary adventure, but behind every delicious dish and satisfied customer lies a mountain of financial data. From managing inventory and payroll to tracking costs and ensuring compliance, the accounting side of the business can quickly become overwhelming.

Streamlined and accurate accounting is essential for your restaurant’s survival and growth. That’s why savvy restaurateurs are increasingly turning to outsourced accounting services to handle their financial operations, freeing up their time to focus on what they do best: crafting unforgettable dining experiences.

In this comprehensive guide, we’ll explore the challenges restaurants face in accounting, discuss seven crucial benefits of outsourced restaurant accounting, and provide a step-by-step roadmap for a seamless transition. 

You’ll also discover the top five restaurant accounting providers in the industry. The knowledge guidance covered here will help you transform your restaurant’s financial health, reduce costs, and boost profitability.

5 Common Challenges in Restaurant Accounting

If your restaurant’s financial records resemble a messy kitchen after a busy dinner rush, you’re not alone. In an industry projected to reach $275.7 billion in the US alone (for quick-service restaurants), accounting demands are as vast as the menu options. 

Let’s take a closer look at some of the most common challenges that hinder restaurant accounting:

1. Management of payroll and employee benefits

Handling payroll and employee benefits is complex due to high staff turnover, varying pay rates, and labor laws. Ensuring accurate payments and managing benefits like health insurance and retirement plans can be daunting.

2. Costs and monitoring expenses

With thin profit margins, cost management is crucial. Tracking expenses such as inventory, utilities, and repairs requires meticulous attention. Without proper accounting, identifying overspending areas or cost-saving opportunities is challenging.

3. Maintaining inventories

Balancing perishable ingredients and fluctuating demand is a constant challenge. Inaccurate inventory counts lead to over-ordering, spoilage, or running out of key ingredients.

4. Compliance with tax regulations

Restaurants face specific tax regulations, including regulations for sales taxes, payroll taxes, and tips reporting. Detailed, accurate record-keeping and an understanding of current laws are essential to avoid penalties and fines.

5. Cash flow management

Maintaining a steady cash flow is vital for smooth restaurant operations. Fluctuations in business, unexpected expenses, and seasonal changes impact cash flow. Effective management ensures funds are available for daily operations, employee pay, and growth investments.

7 Benefits of Outsourced Restaurant Accounting Services

Outsourcing your restaurant’s accounting offers numerous strategic advantages beyond simply delegating tasks. Here are seven key benefits of accounting outsourcing that can significantly impact your restaurant’s financial health:

1. Increased focus on core competencies

By outsourcing finance and accounting business processes, you can redirect your time and energy toward essential aspects of running the restaurant, such as menu development, customer service, and staff management.

2. Access to specialized accounting expertise

Restaurant accounting outsourcing firms employ professionals with in-depth knowledge of restaurant-specific accounting practices, tax planning and regulations, and industry trends. This expertise ensures accurate financial reporting and compliance.

3. Cost reduction

Outsourcing restaurant accounting often proves more cost effective than maintaining a team of in-house accountants. It eliminates expenses associated with salaries, benefits, software, and office space.

Salary expectations are also lower among accounting professionals in outsourcing locations like Latin America (LatAm), which translates to lower labor costs.

4. Scalability and flexibility

Outsourced restaurant accounting and bookkeeping services can be easily adjusted to match your restaurant’s evolving needs. Whether you’re expanding, downsizing, or experiencing seasonal fluctuations, your accounting support can adapt accordingly.

5. Reduced risk of errors

Professional finance and accounting outsourcing companies for restaurants employ stringent quality control measures and utilize specialized software, minimizing the risk of human error in financial records.

6. Informed decision-making

Accurate, timely financial data, along with insightful analysis and advanced reporting provided by outsourced accountants, enable you to make informed business decisions that enhance profitability.

7. Mitigation of financial risk

Restaurant accounting outsourcing services help restaurants stay compliant with tax laws and regulations, reducing the risk of penalties and audits. They also provide financial oversight that can help identify potential problems early on.

Steps To Implement Effective Outsourced Restaurant Accounting

Transitioning to outsourced restaurant accounting doesn’t have to be overwhelming. Follow these steps for a smooth and effective implementation.

1. Evaluate your accounting needs and budget

Begin by assessing your restaurant’s accounting requirements and setting a realistic budget. Determine which accounting tasks you need help with, such as payroll, tax compliance, or financial reporting.

2. Select an accounting outsourcing provider

Research and compare different accounting firms that specialize in restaurant services. Look for providers with industry experience, positive reviews, and a range of services that match your needs.

3. Establish clear communication channels and expectations

Once you’ve chosen a provider, set up communication channels and clarify your work expectations. Define the scope of work, deadlines, and reporting formats to ensure both parties are aligned.

4. Negotiate and agree on a contract

Review the contract thoroughly, paying attention to service fees, termination conditions, and data security measures. Seek legal counsel if needed to protect your interests.

5. Onboard your restaurant accounting partner

Grant necessary access to financial records, systems, and key personnel. Collaborate closely with your new accounting team to ensure a seamless transition.

6. Continue to monitor performance

Regularly review reports, assess service quality, and address any concerns promptly. Maintain open communication with your provider for a productive partnership.

How Do You Choose the Right Outsourced Accounting Firm for Your Restaurant?

Choosing the right outsourced staffing accounting firm for your restaurant is a crucial decision. Here’s what to consider:

Specialized vs. general firms

Decide if you need a firm that specializes in restaurant accounting and offers industry-specific expertise or a general firm with broader accounting knowledge.

Service models

Explore different service models, such as full-service accounting, bookkeeping only, or controller services. Choose the model that aligns with your restaurant’s needs and budget.

Pricing structures

Compare pricing structures, which can be hourly, fixed monthly fees, or customized to your specific requirements. Ensure transparency and clarity in pricing.

Industry experience and references

Look for firms with a proven track record in the restaurant industry. Request references from other restaurant owners to gauge their satisfaction and experience.

Top 5 Restaurant Accounting Providers

To help your search for the best outsourced accounting companies for restaurants, we’ve compiled a list of top providers known for their expertise and experience in the restaurant industry. 

This list is not ranked in any particular order and includes both firms specializing exclusively in restaurant accounting and those with proven experience placing top talent within the restaurant sector.

1. Near

Yes, we’re putting ourselves first because we’re passionate about helping restaurants scale their teams efficiently. 

At Near, we understand the unique challenges restaurants face in finding and retaining top accounting talent. That’s why we offer a solution that connects you with highly skilled, pre-vetted accounting professionals from LatAm. 

By tapping into our pool of over 35,000 candidates, you can build a high-performing accounting team for your restaurant at a fraction of the cost, all while ensuring expertise in US GAAP and fluency in English. 

Our streamlined process ensures you hire quickly and confidently in less than 21 days, saving you valuable time and resources that you can reinvest in your culinary ventures.

2. Indevia

Trusted by brands like Subway and Whataburger, Indevia offers comprehensive bookkeeping and accounting services tailored to the restaurant industry. With over 890 locations and 170 clients, it specializes in minimizing errors and providing timely, accurate financial reports. 

Indevia leverages advanced technology and automation to streamline accounting processes, ensuring businesses stay ahead. 

3. Cogneesol

Cogneesol provides comprehensive restaurant accounting solutions, including bookkeeping, payroll processing, and financial reporting. With expertise in advanced accounting software platforms, Cogneesol tailors its solutions to meet the specific needs of each restaurant. 

4. Quatrro

Quatrro offers comprehensive accounting and business support services tailored for restaurants. With over 25 years of accounting experience, it specializes in back-office transformation, finance and accounting, and interim function management. 

Quatrro helps restaurants scale smarter by enhancing efficiency through process improvements and automation. 

5. SLC Bookkeeping

SLC Bookkeeping offers tailored accounting services for growth-driven restaurant owners. Its team of financial experts delivers accurate, timely financial reports, seamless payroll imports, and CPA-ready books through a three-step accounting system. 

Specializing in cash flow analysis, prime cost management, and financial forecasting, SLC Bookkeeping helps restaurants increase margins and control expenses. 

Known for its strategic planning and small business mentoring, it supports Utah’s top establishments in making informed decisions to foster business growth and efficiency.

Final Thoughts

Hiring outsourced accountants has become a strategic necessity for many restaurants. 

By leveraging the expertise, scalability, and cost efficiency of top outsourced accounting partners, you can free yourself from the burden of financial management and focus on delighting your customers and growing your business.

If you’re interested in building a high-performing accounting team at a fraction of the cost, Near is here to help you find the perfect talent match for your restaurant’s unique needs.

Book a free consultation call with Near today and discover how we can help scale your restaurant’s finance team efficiently.