Are You Using The Right Point of Sale (POS) For Your Restaurant?
Today we’re talking about a sticky topic among restaurant owners: Point of Sale (POS) reporting and your financial statements.
This topic came to mind because it’s something that has been causing frustration for accountants and businesses recently.
We’re here to help you understand why having the right POS system matters and how it can make your life a whole lot easier.
Let’s dive in.
Choosing the Right Restaurant POS System
First things first, there are numerous POS systems out there, and we’re not here to recommend a specific one. The choice depends on your specific needs.
However, regardless of your choice, your POS system should provide you with essential data for your daily sales records, also known as DSRS.
These records should seamlessly align with your financial statements. This alignment is crucial, especially in the event of an audit, as it allows you to demonstrate that your POS system, which essentially runs your business, matches your financial statements and tax returns.
Make Life Easy with Your Restaurant POS
One thing is for sure: your restaurant’s POS system should simplify the entire process for you.
If you’re finding it challenging to manage your sales records or encountering problems, it might be time to consider a more modern POS system.
Modern systems are designed to work seamlessly with delivery platforms and offer better reporting options, reducing reconciliation issues. This not only benefits you but also makes it easier for your employees to handle day-to-day operations.
Effortless Data Integration With Your Restaurant POS
Whether you’re manually entering data or using direct integration, your restaurant’s POS system should make data entry effortless.
Most modern POS systems should seamlessly integrate with your accounting software. Gone are the days of running reports and manually typing them into your computer.
Syncing your POS and accounting software (we recommend Xero!) should save you a lot of time and effort.
Streamline Reconciliation
Reconciliation is another critical aspect of managing your finances. Your restaurant’s POS system should make it easy to match what’s in your POS with your financials. This process should be quick and efficient, reducing the effort required on your part.
The Right Reporting Format
An essential feature of a good POS system is its reporting capabilities.
Your POS system should provide standard reports that include key financial details.
These reports should start with gross sales and then account for discounts, adjustments, service charges, gratuities, and other charges, ultimately arriving at net revenue.
All these figures should seamlessly tie in with your Profit and Loss (P&L) statement, down to the last cent.
Tracking Collections and Taxes
Your restaurant’s POS system should also help you keep track of collections. This includes the revenue you’ve collected, tips paid to your employees, and sales tax.
Proper tracking ensures that you’re aware of what you’ve collected, leaving no room for surprises.
Preparing for Audits
Remember that your POS system is not a financial statement in itself.
It’s an external program that should feed into your financial statements and tax returns. Ensuring that your POS reports align precisely with your financials means you’ll be well-prepared for audits.
No hidden discrepancies mean less stress when facing financial scrutiny.
Need More Help With Your Restaurant POS System?
In a nutshell, if your POS system is causing you operational headaches, reporting difficulties, or slowing down your accounting, it’s time for a change.
There are plenty of options out there that can simplify your daily operations, align your financials, and ensure you’re audit-ready.
If you need help choosing the right POS for your restaurant and ensuring that it can integrate seamlessly with your accounting software, we’re here to help.
You can book a free call with one of our restaurant accountants anytime to chat about how we can help.
And always remember, stay unique, and don’t conform to the stress of financial uncertainty.
