Client Snapshot

  • Industry: Hospitality (Asian fusion restaurant)

  • Stage: Established business with focus on management information and cost control

  • Legal Structure: Proprietary Limited

Financial Operational Setup

  • POS & Payments Processing: Managed through Lightspeed (formerly Kounta).

  • Accounts Payable: Multiple suppliers for Cost of Goods Sold (COGS), with periodic invoices received via email and paid manually through bank transfers or direct debits.

  • Accounts Receivable: Sales collected via daily settlement payments from Lightspeed.

  • Other Expenses: 15–20 credit card transactions per week

  • Payroll: Managed via Xero’s payroll module for 4 permanent and 10 casual staff, based on paper based timesheets.

  • Management Reporting: Spreadsheet-based, using data extracted from bank statements.

  • BAS: Spreadsheet-based, using data extracted from bank statements and COGS invoices, with quarterly lodgement supported by an external tax accountant.

The Challenge

As a mature business, the primary focus of management was on cost control and reducing administrative complexity.

Pain Points Identified:

  • No comprehensive accounting solution in place.

  • Lack of integration between existing systems.

  • Supplier and employee wages payments were manual and time-consuming.

  • Timesheet completion and recording were also manual and time-consuming.

  • Management reporting was high level only, relying heavily on the quality and timeliness of spreadsheet summaries.

The Solution

  • Expand use of the existing Xero subscription to:

    • Automate bank reconciliations and reduce manual data entry.

    • Implement accounts payable automation to streamline the management of supplier bills and payments.

    • Automate the timesheet completion, approval, and recording process using the Xero Me app.

    • Generate customised management reports for weekly cost control and profitability insights.

    • Enable BAS preparation and lodgement directly through the platform.

  • Integrate Lightspeed with Xero to:

    • Automate sales recording and enhance granularity of profit and loss reporting.

    • Track liabilities arising from gift voucher sold and redeemed.

The Outcome

  • Significant reduction in manual processes across records management, reporting, payroll and payments.

  • Granular weekly profit and loss reporting, including tracking COGS and salary ratios.

  • Improved payroll accuracy through the automation of timesheet submission and approval.

  • Minimize risk of missed or delayed supplier payments.

  • Automated BAS preparation and lodgement, reducing compliance workload.

A handful of processes still required manual intervention - such as expense categorisation, GST rate splitting, payroll processing and batch payment handling. These were outsourced to Books & Bytes to maintained discipline data entry and ensure seamless financial management, allowing the client to focus on running their business.

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