In the current business situation of the global business marketplace, be it any type of industry, the main focus remains on growth and development. Every industry wants to maximize revenue collection and make more profits by adopting cost-cutting measures. This is a modern strategy and every company is trying to attain these goals. The outsourcing of activities like restaurant accounting which is not included in the core business model of the industry is considered as a logical option. In the last 10 years, major global business organizations are using this viable option to increase their revenue and growth.
Insurance companies were the first to initiate this which was then followed by the healthcare industry. In the present scenario, the hospitality sector is leading in the outsourcing field. At first, the hospitality sector outsourced the data entry projects and then outsourced accounting for restaurants in India.
Problems faced by the restaurant business:
Most of the industries can revolve around different products and services but restaurant industries can depend on quality food and delivery only. This major characteristic makes the restaurant industry one of a kind. For business growth, the owners of restaurants only need to think about the quality of customer experience and food served. Other backup tasks are as less essential. Thus, the restaurants are outsourcing most of their secondary tasks.
Restaurant outsourcing includes building up social media presence to increase online food ordering and digitizing menu cards and outsourcing the bookkeeping process to established restaurant accounting services in India. But here’s one question arise: up to which extent can restaurants outsource accounting services? As an owner of a restaurant, would you like to outsource the whole process? If yes! Then will it be feasible for you? Here, from MFhills, we present some answers to these doubts in details in the form of do’s and don’ts while outsourcing restaurant accounting services:
The do’s for outsourcing:
Since accounting is not a part of your core business model for restaurants, it is reasonable if owners decide to have outsourced accounting for restaurants in India. This move would also help as a cost-cutting measure and restaurants can use more resources and assets to increase business growth. Outsourcing agency has a team of experts who have enough experience in this field and they might also assist you on tax-related issues. It makes sense if any restaurant decides to outsource accounting comprehensively, this will make it easier for them to make accurate reports regularly based on which the future of business can be planned.
Choose your outsourcing company wisely:
Choose an outsourcing company that has enough experience in serving the restaurant industry. Choosing the wrong outsourcing company will cost you dearly. The accounting systems and processes vary from industry to industry, thus owners need to research before opting to go with any outsourcing company. These companies work with experts and use the latest application software to produce the best reports. Nowadays outsourcing companies use a cloud storage facility to keep your data safe and secure.
The don’ts for outsourcing:
Do not outsource decision-taking activities:
The activities that involve decision making like investment decisions, payment authorization, signing of cheques should be under your management’s control. These are a few tasks that need to have your grip to ensure security. You can outsource your accounts payable and get reports from the outsourcing company on time. But payment authorization should be made in house option that will anyway be reflected on payment process statements done externally.
This move does not mean that you are insulting the honesty of the outsourcing company. But in any way, you should not give any outsider the right to make key decisions on financial issues. Thus only you should have the authority to make key decisions based on the reports of the outsourcing company.