The coronavirus pandemic has had a catastrophic effect on the hospitality industry.
For several months at a time, coronavirus restrictions led to restaurant closures in an attempt to limit the spread of the disease. The negative effects were immediate and devastating: cancelled bookings meant hospitality businesses were receiving no revenue, but restaurateurs had to continue paying monthly rent costs regardless.
When restaurants were permitted to reopen, the situation remained complicated. Hospitality businesses encountered severe staff shortages: a lethal combination of illness and resignations. At the same time, restaurant owners grappled with invoice management, inventory management, the implementation of coronavirus health regulations, staff wellbeing and retention and many other challenges. Among all the chaos, new data revealed that the hospitality sector had lost £115 billion since the beginning of the pandemic.
2022 brought new challenges
In 2022, restaurants are facing yet more challenges. Rising energy and food costs are pushing restaurants to their breaking point. A poll of industry leaders found that many hospitality businesses plan to increase prices due to supply chain problems and rising operational costs. To make matters worse, many hospitality businesses are considering further price rises in light of the Ofgem price cap rising by 54 per cent.
Now, more than ever, restaurant owners are searching for ways to free up time and money to manage all of these unwelcome challenges and invest in their future. One way to invest in the future is to use invoice management software.
The benefits of invoice management software
Restaurateurs, in particular, have much to gain from utilising invoice management software due to their pivotal role within their businesses. Many restaurant owners play a vital role in operating their premises — for example, they help in the kitchen, do admin tasks in the back office and speak to customers on the restaurant floor. What they lack, especially in today’s climate, is time. The good news is that invoicing management software cuts the time spent managing invoices dramatically. However, it also has other vital advantages:
The automation of invoicing is life-changing for businesses worldwide. No longer will employees need to spend several days each month sending and logging invoices. Instead, automated systems send follow-up communications and payment reminders to ensure businesses are paid correctly and on time. The invoice management software company Libeo found that companies can save around four days a month using automated invoicing software.
A lack of automation drives up the cost per invoice. When you consider the time it takes to upload details, manually input figures, pass to their payment team, and get it validated, the time quickly piles up. For example, the average Accounts Payable Clerk can process approximately five invoices in an hour — this gives them sufficient time to manually enter details, check for errors, and process the invoice. By automating the process, businesses can save thousands of pounds annually.
Manual invoices take between 20 and 25 days to process. However, automated invoicing takes significantly less time, sometimes just three to four days. Additionally, payments are even faster if you use recurring billing for supplier payments.
Automated invoice management software makes auditing a breeze compared to manual invoicing. Cloud invoicing solutions save all relevant data, meaning you can refer back to it quickly and easily — invoices, expense receipts and any other relevant documentation are stored in one easy to access place.
Another disadvantage of manual invoicing is the inevitability of human error. Unfortunately, minor manual entry errors can cause significant problems in invoicing. For example, you may pay the wrong person or pay on the wrong date, leading to costly late fees, or even pay twice! In contrast, an automated invoicing system will process invoices correctly every time.
Control and transparency
Automated invoice management software will also give you greater control and transparency than manual invoicing. Invoice management software allows users to see where money is going, allowing them to make decisions regarding suppliers’ costs.
Seamlessly pay suppliers with Libeo
Libeo is reinventing supplier invoice management. The platform, which now has over 100,000 users, allows mid-sized companies to collect, manage and pay supplier invoices end to end in just one click. There’s no need to enter information manually and risk losing important data. Instead, users integrate their chosen accounting software, if using one, and banking systems with the platform, meaning everything is seamlessly connected and all data is in one place.
Restaurant owners free up multiple days by automating invoices with Libeo, giving them more time to focus on other essential tasks. Plus, the platform is easy to use: simply choose the invoice you want to pay,select the bank account you wish to pay from, schedule the day you want to pay the invoice, and voilà! The invoice is planned and ready to go. Thanks to Libeo, invoice management has never been easier.