Restaurant owners have a lot on their plate: taking inventory, managing staff and coordinating work schedules, invoice management, communicating with current suppliers or finding new suppliers, speaking with customers and much more.
Unfortunately, the events of the last two years have made the role of a restaurant owner more challenging still.
First, the immediate effects of the pandemic and the economic aftershocks have been incredibly damaging to restaurants. During periods of lockdown, restaurants had to close completely. No revenue was coming in, but all establishments had to do their best to keep on top of rent payments and rising gas and electricity bills. Unfortunately, after restaurants were allowed to reopen, the situation remained dire. Restaurant owners had to contend with staff shortages, supply chain disruption and adherence to coronavirus changing health regulations.
How Can Restaurants Invest in the Future?
These events demonstrate that restaurant owners must do all they can to invest in the future of their businesses. Historically, restaurants have always been quick to evolve when consumer needs change or a crisis occurs. For example, when the pandemic hit, some restaurants quickly mobilised, offering customers collection or delivery options to ensure they could keep money coming in. Now that the worst of the pandemic is behind us, restaurants must do more to evolve and invest in their future. That is where effective invoice management comes in.
What is Invoice Management?
Restaurant owners must streamline inefficient systems to ensure they have the funds to survive — this is all the more important in today’s climate, where restaurant owners face rising costs. A particularly effective way to reduce costs is to automate supplier invoicing.
Restaurants routinely deal with accounts receivable and accounts payable. However, processing invoices manually is typically one of the most time-consuming tasks. In addition, invoices have specific terms regarding payment methods and due dates, making matters more complicated for time-strapped restaurateurs. Vitally, invoices must be paid correctly and on time to maintain a positive relationship with suppliers and partners.
Unfortunately, many businesses still use Microsoft Excel to manage invoices — this is an outdated method. Manual invoicing is inefficient and insecure, and restaurant owners waste many hours on a process that can be almost fully automated. Plus, manual invoicing increases the likelihood of human error. On the other hand, automated invoicing has many benefits, including time and cost savings, increased security, integration with accounting platforms and banks and access to financial insights and customisable templates.
What are the Advantages of Invoice Management Software?
Save money and time
The average cost of processing an invoice ranges between £4 and £25, but can sometimes be as high as £50. The cost of an invoice depends on various factors: the salary of the individual processing the invoice, any human error that may occur, and the amount of time it takes to process the invoice. Recent research suggests that the cost of invoicing without automated tools can be up to 20 times higher than automated invoice processing. In some circumstances, restaurant owners may spend more money processing the invoice than the cost of the invoice itself. In that regard, automated invoice management pays for itself.
Create invoice templates
Invoice management software provides customisable templates which allow users to include their company logo, change fonts and colours and add a signature. A well-presented invoice will make your business look highly professional.
Access financial insights
Invoice management software provides restaurant owners with dashboards to view all invoice information. Many invoice management software providers will also generate reports which allow users to track their businesses’ finances, all in one easy to access place.
Easily integrate with other platforms
Invoice management software platforms allow you to integrate directly with accounting software and bank accounts to pay suppliers from a chosen bank account in just one click.
Prioritise security
All invoice management software is legally required to adhere to strict security standards, meaning all invoice data is safe from prying eyes.
Streamline Your Financial Management Process with Libeo
Invoice management software provider Libeo is reinventing the way businesses pay suppliers. The platform allows businesses such as restaurants to pay providers more easily. Forget the arduous, time-consuming task of manually processing and tracking invoices. Instead, Libeo enables users to import invoices and integrate directly with accounting software, meaning all relevant data is in one place. Once all invoices are added to the platform, Libeo automatically fills out payment details based on the information supplied in the invoice. Then, Libeo transfers the money from your chosen bank account to the recipient on the date that the payment is due.
Furthermore, Libeo only gets better with time. After using the platform for a while, users will build an address book containing all relevant supplier information, making processing invoices a breeze. With Libeo, invoice management has never been more straightforward.
