How Software Mistakes Can Cost Your Restaurant

Photo by Max Nelson on Unsplash

The restaurant business is tough, and you can use all the help you can get. Technology is supposed to provide that help. Technology is supposed to be Prince Charming swooping in to scoop us up and lead us to “happy ever after”. It doesn’t always end that way. Technology is a dual edged sword. When technology works, it does make things easier, but when it doesn’t it causes major problems. One example of this is with software.

In 2017 software mistakes cost our economy 1.7 trillion dollars according to That is trillion with a “T”. Businesses lose money or time, which can be costlier than money in the restaurant industry, to software mistakes in general. Many of those costly mistakes are from accounting software designed to make small business accounting easier. Most restaurant software mistakes occur with three types of software. The POS (Point of Sale) software, inventory software and accounting software. Many restaurant POS systems include inventory and accounting features and thus have the capability of earning the triple crown of software mistakes. Let’s see how software mistakes can cost your restaurant.

POS Software Mistakes

Restaurant POS mistakes can be the result of several things. The most common mistakes are really the result of having the wrong type of POS system. Restaurants should have a POS system designed for restaurants. Not a multi-purpose POS system which is good for any type of small business. Those systems are usually better suited for one type of business than another. The next common mistakes result from improper installation of the POS system. As you can imagine, software which is not installed properly can cause a litany of mistakes.


Some POS systems can actually violate your merchant services agreement and cause you lots of problems. Fees and penalties may result from merchant services violations for transaction types and limits. This is another reason it is important to have POS software designed specifically for restaurants. They will be familiar with the types of transactions you make. This is particularly important if you accept online orders. You POS system and bank for that matter, may classify those transactions completely different from the credit card orders in your restaurant.

Inventory Software Mistakes

Inventory is important for accounting, setting budgets and for the reordering process. Still most restaurants struggle with inventory and inventory software. The biggest problem inventory software has, is it relies on people. To keep the best inventory, you need the right software and you need the right people keeping track of inventory and you need those people to be properly trained for the software and for your inventory tracking procedure. Again, it is helpful to use inventory software designed for restaurants.

Accounting Software Mistakes

Most accounting software mistakes are actually the result of user errors. Not just inputting the wrong numbers but putting entries in the wrong categories or year. Inputting Errors. These types of mistakes can be exaggerated by complicated software. The restaurant business is fast paced and a simple, easy to use accounting system is best. Another common accounting software mistake is not backing it up. Be sure you are regularly back up your accounting software.

Not Backing Up

Software costs businesses tons of money and restaurants are no exception. The basic rule is hard to use software leads to costly mistakes. The best software will be easy to use and designed specifically for restaurants. Proper set up of the software is another key to avoiding mistakes. Another key factor is having proper training for everyone using the software.

The final bit of advice is to make sure your software is backed up. This is especially important for your accounting and inventory systems. If you lose the tiniest bit of data, these systems are completely thrown off.

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