How can Restaurants become More Flexible with Digitized Invoices?
Businesses across the globe are becoming more technically advanced in their approach, be it for streamlining their business processes, staying ahead of the competition, and retaining or acquiring clients. This is the reason that business owners are opting for digitized solutions to leverage the benefits associated with them.
If we talk about the restaurant business, it is no different, and owners are quickly digitizing their processes for refinement, especially when it comes to generating and managing invoices. Irrespective of whether you are digitizing invoices for vendor payments (accounts payable) or customer collections (accounts receivable), there exists a plethora of associated benefits. So, let’s throw some light on the same!
Top 9 Reasons to Digitize Invoices
Enhanced Data Security
The biggest headache for restaurateurs is nothing but the fact that they lose out on a lot of paper invoices throughout the year. This is never the case when you digitize your invoices or adopt a digitized billing approach in the beginning itself after discussing it with the vendor.
One never loses out on billing data with digitization that helps in making timely payments, availing early payment discounts, and resolving any payment disputes that might arise in the future.
Always Audit Ready
A Restaurant Accountant needs to maintain invoices for a few years in order to be on the safer side of an audit. Maintaining a pile of paper invoices for years can be a daunting task.
However, when you digitize your invoices, you can protect and maintain your financial data over the years effortlessly. So, if any audit takes place in the future, you will not face a penalty due to the loss of an old invoice.
Your entire accounting data holds immense importance when it comes to finding any discrepancies in the financial records. For catching any fraudulent activity concerning invoices, it is imperative to reconcile the same with your bank statements.
It is often an overwhelming task to reconcile using the information on paper invoices. By digitizing invoices, data can be reconciled easily, and any fraud can be caught at the earliest.
Valuable Data Insights
Successful restaurateurs always know the importance of invoice data as it allows them to gain valuable insights into the performance of their restaurant. For instance, when you have digital invoice data available to you, you can easily know which food item in your restaurant gets ordered the most and which gets the least preference.
This will help you know customer preferences and work on your loopholes, ensuring the best food quality. This type of insight and decision making is not at all possible when you look through piles of paper invoices.
Now, when you know which food item of yours makes you stay ahead of other restaurants in the locality, you must cash on it. You can use this to the best of your advantage by either promoting those dishes or collecting testimonials of happy customers and sharing the same on your social media channels, including your website.
Remember one thing in 2020! Customers are smart enough now and expect the same what they see in any type of promotion and ads. This is only possible when you put your best dish forward and appear genuine when they actually order from you, resulting in word-of-mouth publicity eventually.
Bill Payment Convenience
Today, a majority of individuals own a Smartphone and makes payments using the same. People keep cash for emergencies now and prefer services where they can pay digitally. So, instead of paper invoices, provide your customers with a QR code or a mobile app using which they can make payments easily. This is extremely helpful in cases where diners split the-bill, adding to their convenience and loyalty in the long-run.
Easy Tax Filing
It has been recently announced by the US government that by 2020, no paper-based tax return will be accepted. This means one has to file personal taxes online, and it will be a cakewalk to prepare taxes using digital information.
On the other hand, using financial information from paper invoices or accounting books and turning them into digital versions can be extremely tiring. If financial data is available digitally, one can easily use the same to prepare and file the taxes. Also, there is a minimum error chance when you are using digital information to file the taxes, saving you from the IRS penalty.
There are multiple restaurant chains that are using technology to save costs on their cooking equipment. For instance, a large pizza chain is using information gathered from digital invoices to find out which of their stores is making maximum profits and using equipment the most. This helps them in evaluating the condition of equipment like ovens and taking necessary decisions or repair/replacement with respect to its wear and tear.
There are times when various cooking equipment can be repaired easily, but since no data is available to figure out their wear and tear, it leads to replacement eventually. However, with digitized invoices, owners can use digital data to figure out the same and save costs at large concerning equipment replacement.
Digital invoices not only save time and efforts of an accountant but the owner too! This is especially true for owners who do not opt for Restaurant Accounting Services but manage books on their own. With digitized invoices, they save a lot of time as compared to managing a plethora of paper invoices. This saved time can be used easily to focus on enhancing the quality of food and service within the restaurant.
Even if your restaurant provides the best of food and service, there is always scope to improve more and more. Also, you can search for new food items/products and profitable partnerships for growth and scalability. With competition on rising in the restaurant industry, leaving any scope of improvement can make your loyal customers look for other better options that you would never want as a restaurateur.
This explains multiple reasons for you to adopt a digitized approach towards managing your invoices. As a businessman, you should always remember one thing that technology is changing business processes and customer mindset fast, and if you need to stay in the competition, you need to have a technological business approach.
Digitized invoices will provide you with all the benefits as mentioned above and put you in a position where not only you can enhance the quality of your food and service but also look at the bigger picture for improvement, growth, and scalability.