Recently, we had the opportunity to host a roundtable discussion with a number of restauranteurs in the Cincinnati area. Through these discussions, a few topics stood out as being top of mind to management teams that may be top of mind for you as well.
- AP Automation – There are many benefits surrounding AP Automation, including improved accuracy, recognizable cost savings, standardization and streamlining of processes and related approvals, and the ability to pay invoices timelier. AP automation can also create additional best practices around invoice approval which can assist with preventing fraudulent invoices presented through cyber security risks. Depending on the systems used, many AP automation programs can be fully integrated with your GL systems creating a more efficient process.
- Payroll and Benefits – Payroll management expenses can be costly, and understanding the pros and cons surrounding payroll being at the various levels of your organization (such as each legal entity) versus the use of a common paymaster or entering into a professional employer organization (commonly known as PEO). The decisions made can have significant impacts on the company’s expense per payroll run, cash management, and payroll tax reporting, but also have been the subject of discussions with the recent PPP loan filing and Employee Retention Tax Credits (ERTC). Stay tuned as we will be exploring more on this topic in the coming months.
- POS handhelds (and tabletop payment devices) – There are significant pros and cons that operations teams need to consider surrounding the discussion on using POS handhelds. POS handhelds can increase the accuracy of orders and cut down on meal delivery time which allows tables to turn faster, which is a great incentive, especially during peak dining hours. They allow additional peace of mind to customers, as payment is taken at the table, which can add additional security around the credit card number. However, in order for the handheld to work effectively, additional internet access points may be needed for connectivity. More importantly, restauranteurs need to consider the impact on the overall customer restaurant experience that may occur by using this technology at the table and whether the pros outweigh the cons.
- Cyber liability insurance – There are many things to consider when looking at cyber security insurance to ensure your company is truly benefiting from the premiums you are paying. It is recommended that the insurance policy is reviewed at least annually with a broker that specifically has experience with this type of insurance and that companies are not simply relying on riders on property and casualty insurance. It is important that users understand coverages and how much insurance is actually needed, and companies should complete the underwriting process truthfully in order to ensure all risks are known to prevent a lack of coverage in the future. We will be discussing more about cyber liability insurance at our webinar in July.
- Cyber security – the topic of cyber security continues to stay top of mind in the ever-changing technology environment we live in. There is a lot of focus on internal cyber security concerns and preventing them within your company and restaurant locations, but a topic to keep top of mind that could have major impacts on your day-to-day operations is cyber security concerns with your primary vendors and third parties you and your company interact with. For example, if your primary food vendor is a victim of a ransomware attack, how will you ensure you have food to prepare and sell? While it may seem that it is out of your control, there are a number of measures you can take to help protect your business from external cyber matters and ensure the resiliency of your top vendors, including but not limited to the following:
- Obtain an understanding of their risk assessment in order to ensure that they have thought through a plan in case of a cyber attack.
- Obtain a copy of their penetration test.
- Request a certification that they have cyber insurance.
- Request a SOC 1 or SOC 2 report, if applicable, and understand what it covers.
Join us in July for our webinar exploring cybersecurity strategies to protect your company from disruption.
If you would like to discuss any of the topics listed above, please contact your GBQ advisor. We look forward to seeing you at our upcoming Restaurant MasterClass webinar, albeit virtually!
Article written by:
Kari Maue, CPA
Director, Assurance & Business Advisory Services
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