For the hospitality industry, the year 2020 has been very tough due to lockdown and social distancing norms. Many hotels and restaurants have to reduce their staff or even shut down their doors permanently to cope up with the pandemic loss.
If you are trying to get your hospitality business back on track after a major setback, accounting outsourcing services are highly beneficial for your business growth. With the outsourcing solutions, you can accelerate your hotel or restaurant’s business better and make the desired revenue.
7 Ways Accounting Outsourcing Services can grow your Hospitality Business
Hotel accounting is required to streamline the financial aspect of the business using various accounting reports and statements. When you outsource restaurant accounting services from certified accounting service providers, you can give a competitive edge to your business in the following manners:
Better Supply Chain Management
One of the most important operations of a hotel manager is maintaining inventory accounts. On a daily basis, restaurants are stocked up with fresh food items and other products. Therefore, it is essential to prepare a proper stock account so that restaurant owners can know how much they are spending on inventory daily.
When restaurants are spending more rather than making daily, it is a warning sign for them. If managers don’t prepare inventory accounting, they can’t know the business’s exact spending ratio. That’s why outsourcing a hotel accounting can help you to daily tally your inventory account and even suggest ideas to improve inventory management.
Effective Payroll Management
In restaurants and hotels, different types of employees are working—some on an hourly basis and some on a monthly basis. For example, waiters are usually paid on an hourly basis, and restaurants have to calculate tips received by the individual waiter daily before measuring their final payout. On the other hand, chefs, managers, and other hotel staff are paid biweekly or monthly.
Overall, hotel payroll management is a quite complicated task and requires the support of highly qualified payroll managers to complete it. Whenever we have to manage a hotel’s payroll accounts, we appoint our senior accountants to handle it because there are numerous compliances are involved in hotel accounting services.
Cash Flow Optimisation
To smoothly run your hotel, you have to maintain a healthy relationship with vendors. And that’s only possible when you pay them on time. With cash flow management, the CapActix team ensures that you always have sufficient cash in hand to run the day-to-day operations.
Cash is the King—and with effective cash flow optimization, you can better honor the king. Therefore, our Accounting outsourcing in the USA for restaurants includes accounts payable and receivable management to keep a tab on the pending or overdue payments. For hospitality businesses, following cash flow management services are highly important—
- Alerts on overdue
- Cash flow forecast
- Clearance of pending payments
Budget creation is another very important part of restaurant accounting. Without effective budget creation, you cannot control finances, plan better strategies for the future and determine your profitability.
When you hire an outsourcing accounting company, they can help with creating a department-wise budget to maximize your profits. They can analyze your last year’s expenditure and revenue statement and use it to forecast your next year’s budget. The professional finance experts can create a complete roadmap for your hotel to gain maximum ROI.
Additionally, when you have a full-time accounting outsourcing company support, they can alert you whenever you are crossing the predetermined budgetary limits. To maximize our clients’ profits, we constantly monitor their expenditures and revenue so that we can show the right financial path to them.
Automation in Daily Sales
Just like inventory and payroll, hotel managers have to enter and track daily sales. A restaurant can’t close its door for the day without recording and auditing daily sales. And, when we are talking about the big restaurants where hundreds of customers eat daily, even a professional accountant can’t juggle between the sales sheets.
To maintain a systematic daily sales record, accounting outsourcing services are highly helpful. Professional outsourcing companies have a large team that can effectively manage a large number of daily sales. Plus, they use the latest accounting and bookkeeping software to directly integrate with POS systems which makes restaurant accounting even smoother.
Insightful Business Decisions
Outsourcing hospitality accounting services provide actionable insights into your restaurants and hotels. With the analytical, insightful data, you can pinpoint gaps in your financial management such as revenue leakages, cash flow inefficiencies, and so on.
When you can easily access the consolidated department-wise revenue analytics, you can determine which department in your hotel is generating high or low revenue. Additionally, you can make informed business decisions based on real-time analytical data.
Fast & Effective Accounting Services
Accounting operations aren’t the primary hotel and restaurant services; therefore, many small places don’t hire a dedicated bookkeeper to manage accounting services. Usually, the owner or manager is left in charge of accounting work, which takes up a lot of time and effort.
When you delegate accounting work to professionals, you can increase turnaround time and efficiency in your accounts. You have to deal with accounting errors and late salary troubles less. Importantly, you can concentrate more on enhancing your guest satisfaction. With one outsourcing decision, you can improve the financial health of your business.
Mostly, people think that restaurants’ or hotels’ success depends on hospitality services, good chefs, and marketing efforts. But, they forget that the most important part is good financial health. If your restaurant is making money, you can survive any hardship, period. Therefore, focus on improving the financial health of your business before planning ahead.
For outsourcing hotel accounting services, you can contact CapActix anytime and streamline your accounts.