Why it’s Important to Link Your Point of Sale with QuickBooks

The Need to Integrate your Point of Sale System with QuickBooks:

Your Point of Sale system (POS) is insufficient to tell you if your restaurant is making or losing money. There is no way to know how the cost centers are affecting the bottom line.

Without accurate information bad margins could be wreaking havoc. There is only one way to know for sure. A profit and loss with balance sheet is needed.

When a profit and loss is combined with POS it is more comprehensive and accurate.

Key metrics become easy to read.

Restaurant Financials should include:

All sales and cost of goods sold from the POS. They should be listed by type of income and type of cost of goods sold.
The main cost centers such as salary, wages, rent, employee costs.
Employer taxes and benefits.
Standard expenses, such as advertising, utilities, lease payments and more

Balance Sheet Summary reports with:

Current assets such as inventory, cash, receivables and investments.
Fixed assets such as buildings, equipment, furniture, vehicles and more.
Current liabilities such as sales tax owed.
Accounts Payable.
Loan obligations.
PPP debt and forgiveness accounts.
Partner investments and equity disbursements.

In order to have a comprehensive set of financials it is necessary to merge systems. Merging systems means to download or import the transactions from your POS directly into QuickBooks Online. The daily transactions come in the form of journal entries.

Journal Entries Make the Difference

What is needed is integration to QuickBooks with daily journal entries.

These daily journal entries are system generated and include the following information:

Total sales by Department- Sales Food. Sales Bar. Sales Beverage etc.
Total cost of Goods Sold by Department. Cost of Food, Bar, Beverage etc.
Cash Short and Over for each day.
Total deposits that integrate with your bank to allow for easy reconciliation.

The Benefits of Your POS -QuickBooks Online System are Many and Include:

Accurate daily sales information with ease.
Human error is reduced. Time and money are saved.
Real time knowledge of cash short and over issues.
Easy to read profit margins for food, beverage and bar.
Early warning systems of labor percent issues or cost of goods sold discrepancies.
Price modifications become clear when losing money.
Fraud detection with cash short and over issues.
Partner costs with Uber and Door Dash fees are more apparent.

Summary Discussion on the Need for POS integration with QuickBooks Online:

QuickBooks is great. Your POS is great. The two are best suited when fully integrated.
Data from bookkeeping, payroll, employee schedules, purchase orders and more can be automatically imported into QuickBooks.
Sales, inventory and accounting can be easily imported as well.

Think of the savings in time. Multiple systems that do not agree cause confusion and bad decisions.

There are other benefits as well that relate to Cash Management.

Daily reporting of cash short and over along with the daily deposit provides a means of reconciliation.
Verification of cash deposits is an essential part of supervision and oversite.

When you know what the Deposit is supposed to be then:

Cash handling will have an added layer of scrutiny:

Changes to the deposit will become highly visible.
Undeposited funds can be better managed.
Any deposits that are not taken to the bank can be investigated quickly and resolved within a day or 2.

Managing a restaurant has never been easy. Taking steps to make life easier is encouraged. Direct integration allows the 2 systems to share data in real time. Your POS and QuickBooks are compatible with many software’s that include ShopKeep. Square, Lightspeed , Revel and Toast.

In short the integration process should be streamlined. Data from bookkeeping, payroll information, sales, inventory, and accounting is a pushed to your QuickBooks accounts daily.

Integrate your point of sale system with QuickBooks and enjoy the benefits today.

Allrestaurant
bookkeeper

(440) 533-9224