Hospitality business owners tell us they are under intense pressure to survive. From the global pandemic to staff shortages, cost of living crisis, VAT increases, and higher operating costs, it's been unusually tough. Many operators looking for accounting solutions for restaurants tell us that the current business environment feels like a perfect storm.At Outmin, we help hospitality business owners answer the question of "how to reduce admin costs" all the time. If you count cash like business owners do, you'll understand what we mean.We know that being cost-conscious is crucial for the hospitality industry right now. That's why we believe that automated accounting can be a smart (the smartest?) strategic move to improve financial health.If you're looking for ways to streamline your financial processes and save on accountancy costs, you're in the right place. In this article, we share some ways to optimise financial efficiency in the hospitality sector.We'll discuss embracing technological integrations and implementing streamlined processes in both hospitality bookkeeping and accounting. Plus, steps on how to reduce admin costs, improve cash flow, and ultimately boost your bottom line.Ready? Let’s dive into it.
Reducing Accountancy Costs
More costs, less time? No, thank you. We’re in the drama-free era of effectively reducing accountancy costs. Many stress-out hospitality business owners are scared of change because they don’t want to complicate their lives even more. We understand that fear. But the truth is that using the right technology and implementing streamlined processes do bring results. And the thing is - it doesn’t even need to be complicated.
Leverage Technological Integrations
Research is clear on this - technology such as Artificial Intelligence and robotic process automation can greatly reduce accounting costs. According to Vintti.com,
Early research indicates that AI automation in accounting can reduce labor costs by over 50% for some tasks. For example, invoice processing done manually takes over 4 minutes per document, while AI-powered data extraction and posting can complete the same work in under 30 seconds. These time savings quickly compound. also helps you save time and improve the accuracy of your financial statements and analysis.
This is why you should consider automating repetitive tasks within your accounting systems. It’s much faster and requires less human intervention. And yes, we understand that this may sound a bit complicated. AI? Process automation? Seems complex… but you’d be surprised at how it can actually simplify your life. By implementing accounting software and systems that can handle mundane tasks like data entry, bank reconciliation, and report generation, you can free up your team to focus on more strategic financial activities. Here at Outmin, we make sure the transition is smooth and easy for you. We use AI and human experts so you can sit back and relax as we work as an entire finance team in the background. And, of course, the clients we partner with are not necessarily tech-savvy. They don’t need to be. The system is simple and you’ll truly have full efficiency at your fingertips.
Streamline Operations
Another key aspect of optimising financial efficiency in the hospitality industry is implementing streamlined processes. And what exactly do we mean by streamlined processes? Well, this goes hand-in-hand with tech integrations and accounting automation. By creating efficient workflows and reducing manual tasks (like invoice processing and payroll calculations), you can save time and reduce the risk of errors in your financial reporting. With Outmin, your entire accounting workflow is streamlined as it connects to your bank accounts, Point-of-sales systems, supplier channels, and people management systems. It’s so seamless you barely notice the engine running!It eliminates the need to have an expensive accounting team in the background, plus a number of different software and tools (and the data corruption that can happen between each touchpoint) because it does everything for you. Isn’t that ideal?
Ensure Compliance
Ensuring compliance is crucial in the hospitality industry, especially when it comes to financial management. By using a technology like Outmin, you can automate compliance checks and ensure that your business is following all regulations related to accounting processes. With in-time data tracking and reporting capabilities, you can easily monitor your accounts payable and accounts receivable, generate cash flow statements, and track expenses.This not only helps you stay compliant with regulations but also allows you to make informed financial decisions based on accurate data.Outmin also takes care of everything tax-related. Hospitality operators know how tax can be a headache, like filing VAT every 2 months - who wants to deal with that? Outmin has got you covered. We handle it all on our own.
What Are The Financial Benefits Of Improving Accounting Efficiency In Hospitality?
More than ever, hospitality business owners are realizing the profound impact that an efficient financial operation can have on their overall success in a challenging market. The benefits speak for themselves:
Cost Reduction
This one should be obvious by now. Eliminating unnecessary costs is the natural result of optimising financial efficiency. This leads to resource optimisation, allowing for better allocation of funds to areas that directly contribute to the business's growth and sustainability.Also, an all-in-one solution like Outmin reduces the need to have several accounting professionals and different software (none of these come cheap!). Because of that, it can significantly reduce your accounting costs. Take this example: one of our clients, a pizza restaurant, was able to reduce its accounting costs by 66% compared to its previous solution. That’s how significant the savings can be!
Better Decision-Making
Every small decision has an impact on your business. Some can even make or break it. And let’s be honest: would you rather make decisions based on instincts and guessing games or on real data and financial insights? You know the answer and we know it too. A streamlined financial operation provides operators with accurate and timely data for decision-making. This empowers them to make informed choices regarding pricing strategies, resource allocation, and strategic investments with real, actionable knowledge - contributing to the overall success of the business.Choosing a data-driven solution, as opposed to traditional accounting, can really make a difference. With a traditional accountant, you’ll have financial reports with up to a 6-week delay. This is simply not reasonable and makes timely decision-making impossible. A solution like Outmin, on the other hand, gives you weekly financial reporting that is easy to understand and gives you full control of your business’s financial health. This means you can act at the right moment instead of when it’s already too late.
Competitive Edge
We all know that the hospitality sector is incredibly competitive. It’s a really tough market to survive in - for example, only a minority of restaurants will survive their fifth anniversary. We want you in the minority!That’s why it’s so crucial for hospitality businesses to maintain efficient financial operations and make use of the right tools and data. This way, you can make better-informed decisions and position your business ahead of the competition.
Future-Proof your Business
Finally, by optimising financial efficiency, hospitality operators are actively preparing for the future. They lay the groundwork for long-term sustainability and adaptability in the face of future challenges. Efficient financial operations act as a shield against uncertainties. They provide the agility needed to navigate through dynamic (and often very difficult!) market conditions. Future-proofing also means investing in innovative technologies and practices that are shaping the future of the hospitality sector. Like Outmin, of course. Integrating advanced analytics, artificial intelligence, and automation into your financial processes is the best way to anticipate future trends and have an edge over the competition. You don’t want to be left behind, do you?
Ready to Elevate Your Financial Operations?
Optimising financial efficiency isn't just a choice anymore; it's a strategic imperative. With the right tools and strategies, cost reduction, improved decision-making, and a competitive edge are at your fingertips.Outmin can help you transform your inefficient financial function into a well-oiled machine - it’s simple, faster, and cheaper. Are you ready to revolutionize your financial operations and future-proof your hospitality business?
.png)
.svg)
.svg){kind=small}
