Outsourced Bookkeeping: The Secret Sauce for Growing Restaurants
When you're running a restaurant, the pace of work is constant. Between managing staff, dealing with suppliers, and keeping customers happy, the last thing you want to deal with is the pile of receipts and invoices stacking up on your desk. Bookkeeping is one of those things that’s absolutely essential, but often gets pushed to the bottom of the to-do list. We’ve been there, working with restaurants and hospitality businesses for over a decade, and one thing is clear: keeping your books in order is tough, but ignoring them is risky.
Let’s break down why outsourced bookkeeping could be a lifesaver for growing restaurants and how it tackles the real challenges you face every day.
The Hidden Problem of In-House Bookkeeping
At first glance, it seems easier to keep bookkeeping in-house. You might think, “I’ll just hire someone to handle it,” but the reality is that even with a dedicated bookkeeper, things can quickly spiral. Here’s why:
Time and Focus:
A full-time bookkeeper might be great at handling daily tasks, but as your restaurant grows, the complexity of your finances grows too. Suddenly, they’re not just managing payroll and invoices, but dealing with tax filings, compliance, and balancing vendor payments.
Cost:
Bringing someone on full-time isn’t cheap. On top of a salary are benefits, training, and the tools they’ll need. If your bookkeeper isn’t familiar with restaurant-specific challenges, like tracking food costs or managing tips, you could end up paying for mistakes.
Curious About Bookkeeper Costs?
If you're wondering about the cost of hiring a bookkeeper in cities across the U.S., we’ve got the details you need. We’ve broken down the average bookkeeper costs per city in 2024 to give you a clear idea of what to expect, whether you're in a major hub like New York or a smaller city.
We worked with a client who thought their in-house bookkeeper had things under control. They found out later that key financial reports were being submitted late, causing headaches during tax season. It wasn’t a lack of effort, but rather a lack of bandwidth. That’s when they turned to outsourced bookkeeping.
How Outsourcing Bookkeeping Eases the Burden
Outsourced bookkeeping is about more than just offloading tasks. It’s about solving problems and setting up systems that grow with your business. When you outsource, you're not relying on one person to do everything. Instead, you get access to a team of professionals who know the restaurant business inside and out. They understand your pain points and can handle them efficiently.
Here’s what happens when you outsource:
Specialized Knowledge:
Restaurant bookkeeping isn’t like any other industry. Tracking food and liquor costs, managing payroll with tips, handling vendor contracts—it’s a lot. An outsourced bookkeeper who specializes in hospitality knows exactly how to manage these complexities.
Scalability:
As your restaurant expands, your bookkeeping needs change. Maybe you’re opening a second or third location, or your menu is growing. An outsourced team can scale their services with you, so you never have to worry about falling behind.
Improved Financial Accuracy:
With an outsourced bookkeeper, you get financial reports that are timely and accurate. This helps you stay on top of your cash flow and make better business decisions. It also means no more late nights trying to figure out why your accounts don’t match your bank statements.
We had a restaurant group come to us after their in-house bookkeeper struggled to keep up with multiple locations. Vendor payments were getting delayed, and they weren’t tracking their food costs accurately. After switching to outsourced bookkeeping, they had real-time tracking and visibility into their numbers—something they didn’t have before.
% Efficiency Outsourced vs. In-House Bookkeeping in 2024
Common Challenges That Outsourced Bookkeeping Solves
You’re probably familiar with some of these challenges. They’re the things that keep restaurant owners and managers up at night:
Cash Flow Management:
Knowing how much money you actually have can be more complicated than it seems. Delayed payments, missed invoices, or unrecorded expenses can throw off your cash flow. Outsourcing ensures all transactions are tracked in real-time, giving you a clearer picture of your finances. This level of accuracy helps prevent unexpected shortfalls.
Payroll Headaches:
Calculating wages, managing tips, and staying compliant with labor laws is a balancing act. Miss a step, and you could face penalties or unhappy employees. Outsourced bookkeeping handles these details accurately and on time. Your employees stay satisfied, and you avoid costly mistakes.
Tax Compliance:
Navigating restaurant-specific taxes is complicated, and mistakes can lead to heavy fines. Outsourced bookkeepers stay on top of tax deadlines, ensuring full compliance with local, state, and federal tax laws. Whether it’s managing sales tax or preparing year-end filings, they handle it all for you.
Outsourcing helps you navigate these challenges by giving you an experienced team to rely on, without the overhead costs of a full-time staff. You can get the support you need, when you need it, without sacrificing accuracy or compliance.
Common Misconceptions About Outsourcing Bookkeeping
Despite the clear advantages, there are several misconceptions about outsourced bookkeeping services:
1. “It’s Too Expensive”
Outsourcing is often more affordable than hiring in-house staff. When you consider the cost of salaries, benefits, and overhead expenses, outsourcing can provide high-level expertise at a lower cost.
2. “Loss of Control Over Finances”
Many business owners fear losing control of their financial operations when outsourcing, but reputable bookkeeping services ensure transparency. You maintain full access to your financial data while letting experts handle the day-to-day tasks.
3. “Only Big Businesses Benefit”
Outsourcing bookkeeping is not limited to large restaurant groups or massive franchises. Small and medium-sized businesses can greatly benefit from the cost savings, accuracy, and scalability that outsourced services offer.
4. “Bookkeeping equals accounting.”
In simple terms, bookkeeping involves recording financial transactions, while accounting focuses on analyzing and interpreting those records. Still unsure whether you need a bookkeeper or an accountant? It's a common question, and the distinction can be tricky. We’ve created an outsourced vs in-house article to help you understand the differences more clearly here.
Embracing Technology: The Future of Bookkeeping
Bookkeeping today isn’t just about balancing ledgers—it’s about leveraging technology. Tools like Restaurant365 or QuickBooks automate many time-consuming processes, from tracking inventory to managing vendor payments. When you outsource your bookkeeping, the team will set up and manage these platforms for you, so you get real-time insights and everything stored in the cloud.
AP Automation: A Case Study in Efficiency
We experienced this transformation firsthand with Laufer, an accounting firm dedicated to helping franchises like McDonald's optimize their financial operations. Before outsourcing their bookkeeping to us, Laufer spent significant time on manual accounts payable (AP) processing, which complicated vendor management. After implementing our automated AP solution, they reduced manual AP tasks by 80%, saving valuable time each month. This automation not only streamlined their processes but also eliminated issues with vendor management and late payments, giving the owners peace of mind.
Is Outsourced Bookkeeping the Right Move for You?
Ultimately, outsourcing your bookkeeping is about freeing up your time and reducing stress. It allows you to focus on running your restaurant while experts handle the numbers. At Over Easy Office, we’ve been helping restaurants and other businesses streamline their finances for over 11 years. Our experience means we understand the unique challenges of the hospitality industry and can offer you the tools and support to stay on top of your financials.
If you’re ready to take that next step and explore how outsourcing bookkeeping can help organize your restaurant’s finances, contact us today. We’ll help you get set up with a system that works, so you can focus on growing your business without worrying about the numbers.