The first thing to know about multi-unit restaurant intercompany accounting is that it is a pain in the neck. Once you realize this, you hire an additional part-time resource in accounting to handle this for you because you have no time to do this tedious, non-value added, but very important task.
For those of you not living in the accounting world, there are two factors that create this need in the industry.
- Restaurant locations are often held in their own legal entities
- Restaurant operators can gain efficiencies by operating many locations as if they were one company
And so it goes that the accounting department gets stuck making all kinds of ‘Due To’ and ‘Due From’ intercompany transactions to keep the records straight. Owners often don’t think too much about this but they should because they are allocating precious staff resources to this task that could otherwise be spent on more strategic initiatives. There is opportunity cost if nothing else.
Restaurant365 automates all intercompany transaction processing between entities when the store locations are run as one. Here are a few examples:
- Allocating expenses across locations
- Applying payments and credit memos to invoices from multiple locations
- Depositing funds from multiple locations into a single bank account
It’s a major time saver. If you are using QuickBooks (or should I say multiple installs of QuickBooks) to handle your multiple entities and your intercompany transactions, you need to look at Restaurant365. It will save your team loads and loads of time.
Morgan Harris | Co Founder | Restaurant365