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Three key areas to upgrading your back office

February 28, 2022 / Aaron Schwaderer

Restaurants across the U.S. embraced technology as a solution to COVID-19 concerns, and it’s continuing to shape the industry and lead to financial recovery for many restaurant owners.

QSR Magazine reported 89.6 percent of restaurants offered takeout and 81.9 percent had delivery as an option, a third of which used three or more delivery apps.

But why stop at introducing new technology in front-of-house and kitchen operations?

You’re probably among the many restaurant owners who quickly adapted your service to include QR codes, contactless payment, online ordering, and delivery services, and you may have even transformed your business model to incorporate a “ghost kitchen” or virtual restaurant.

Three of The Spoon’s five (really 6) tech predictions for 2022 include automation, digitization of the back of house, cloud-based services, and restaurants harnessing their data to power growth.

All of these tools can be used to alleviate back-office headaches, while driving growth and efficiency in your business.

Back Office Upgrade #1: Automated Invoice Management

Paying vendors has never been quicker and cheaper

About 87% of businesses aren’t satisfied with their current invoice management process, according to research by Forrester Consulting. The same research report also shows that 43% of companies are looking to automation as a top priority for invoice management.

What’s an invoice management service? At Navrae, we have simplified the invoice management problem into 2 steps:

  1. Scan them at your restaurant/office
  2. Set the payment approval date in the web portal

Now that, is very little work on your end in managing the invoice!

We handle:

  • Digitizing the invoice
  • Pulling all relevant data from it
  • Sending the payment, whether by check or EFT

An automated invoice management system cuts down on the opportunity for human error, time and money spent processing invoices, and gives you greater insight into ingredient expenses.

An invoice management service will reduce:

  • Time spent processing invoices
  • Time spent reviewing invoices
  • Time spent correcting manual entry errors or refunding duplicate payments
  • Penalties and late payments incurred due to lost discounts, errors, and slow mail delivery
  • Payroll cost for employees manually handling invoices

For a competitively priced add-on service, our line-item capture provides you with data on exactly where your money is being spent, and fluctuations in ingredient prices.

Calculating your actual food cost versus theoretical plate cost has never been easier and more efficient in determining your bottom line on cost to sales ratio.

And if you’re ready to open a new location, we can easily pull your existing Chart of Accounts and vendors over from your existing store.

Back Office Upgrade #2: Managed Accounting Services

More control over your cash flow and powerful budgeting tools

Possibly the most hated part of being a restauranteur is managing the books, since about 80% of all restaurant owners started out as entry-level restaurant employees. Most restaurant owners would rather their time perfecting new dishes or improving customer service, rather than crunching numbers in the back office.

However, cash flow is the #1 reason why businesses fail, so having a clear understanding of your restaurant’s finances is key to survival and growth. Especially if your business is struggling financially, the first step to recovery is understanding your cash flow.

At Navrae, our suite of services includes these managed accounting services:

A managed accounting service keeps your business running smoothly by ensuring utilities, vendors, and employees are paid on time and avoiding shortages with minimal effort on your part.

Navrae also provides you with Profit and Loss (P&L) statements, cash flow reports, balance sheets, and detailed expense and revenue reports.

One of our biggest compliments is the ability to create customized reports for our customers individual needs with minimal turnaround time.

Navrae’s cloud-based accounting services provide:

  • The security of your financial data is paramount. Navrae utilizes Microsoft’s award-winning cloud-based solutions, so you can rest easy knowing your data is being stored with a top-ranked service.
  • Cloud-based accounting means you can securely access your data from any mobile or desktop device with an internet connection, anywhere, at any-time.
  • No need for physical storage or filing systems for paper invoices, financial reports, or other records, reducing printing costs and waste.
  • Files are stored in one location, indexed, and searchable for ease of use and access.
  • With cloud-based accounting, the service grows right along with your business. Opening a new restaurant simply requires a new digital chart of accounts. Vendors can even be imported from existing restaurants.

Back Office Upgrade #3: Payroll designed for restaurants

Your payroll service should meet your restaurant’s needs

According to a study by Kelton Global, 79% of business owners find it hard to manage their payroll tax, and 70% said varying labor laws across states make it harder to keep up.

That’s on top of spending about 5 hours every pay period (21 days a year!) just calculating payroll as a small business owner.

One of your first purchases was likely a payroll software, but now is likely outdated, has cost more to repair than it’s worth, and requires manual alterations to keep up with changing payroll compliance regulations.

Why choose a managed payroll service over software?

Eliminate Upsells and Fees

At Navrae, we have no hidden fees; just a flat monthly cost plus $2 per employee.

We are also not going to upsell or charge you for any new improvements on our system. Most major payroll companies will try to upsell you on their packages, or call you frequently, trying to get you to move up a tier.

No learning curves

Eliminate the need for managers or specially-trained employees to manage payroll, giving them time for other duties to grow your business.

There’s no need to call for an IT professional to fix an issue and wait months or years for a code change. Even non-tech-savvy employees can follow the simple steps for updating information or onboarding for new hires.

Cost Savings

Managed payroll services for your restaurant’s employees can help your organization cut down on major overhead costs from payroll. With a centralized service and a team processing all of your payroll needs for you, you save money on:

  • Software costs and fees
  • Paying a back-office employee $21-27 an hour to process your payroll
  • Tax penalties due to erroneous miscalculations
  • Reprinting checks when a check is lost or delivered to the wrong address
  • Easily pay employees of all types (salary, hourly, part-time, or gig workers) at all of your restaurants

Peace of Mind

Your employees are the most important asset of your business. Ensuring that their payroll calculation is both accurate and pay is delivered on time will avoid frustration and loss of motivation.

 

A managed payroll service like Navrae ensures you’re compliant with all of the laws and regulations and that your payroll tax is paid timely.

The COVID-19 pandemic may have disrupted restaurants’ usual service and forced major changes upon the industry, but many opportunities were created and are still being realized to implement technology into running a restaurant for the better.

Digitization, automation, and cloud-based services offer unique solutions for restaurant owners to recover from the financial crises and create new growth. Navrae wants to help you streamline your processes and lighten your workload to free you up to spend time focusing on your business’ growth.

If you’re interested in how Navrae’s services can help you manage your restaurant’s finances, contact us here. We look forward to hearing from you.

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Aaron Schwaderer

Aaron is a man of many talents. Whether he is keeping vendors up-to-date in the system or developing content, he loves to keep you up and running.

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While our services are comparable to a bookkeeping service, we go above and beyond that role by looking for other pain points that we can eliminate, typically at no additional cost.

We do this by developing automate solutions that ease their burden, as well as ours. This is how we can keep our costs competitive.