Reconciliation is a critical accounting process that ensures financial data matches across different systems. While this is a common practice in businesses, it has become a major headache for restaurants. With the emergence of new delivery platforms, each operating in its own unique way, the reconciliation process has turned into a full-blown migraine for operators of restaurants.
Every delivery platform operates differently, adding to the complexity of the reconciliation process. This poses a significant challenge for operators who heavily rely on delivery services. For a single location, reconciling financial data from various platforms can consume hours of accounting time. As restaurant brands scale up, integrating virtual brands into existing operations requires robust reconciliation processes, The challenges around reconciliation intensify, creating even more inefficiencies. Chargebacks and refunds don't always flow seamlessly to the point of sale, leading to mismatches between the platforms and the restaurant's data. Complexity increases even further when there is a franchisor-franchisee relationship, impacting royalty payments.
Apart from chargebacks and refunds, reconciling sales tax remittance adds another layer of complexity to the reconciliation process. Different states have varying marketplace laws, and platforms adhere to these laws differently. Some platforms handle the tax remittance on behalf of the restaurant, while others pass the responsibility to the restaurant itself. Additionally, tax rates can differ based on the customer's location, further complicating the process. The intricacies of tax remittance contribute to the chaos in reconciliation, requiring innovative solutions to bring order to this aspect of financial operations.
Kosh,ai holistically automates the reconciliation process. The Kosh platform can be utilized across the entire brand, covering virtual brands, franchisees, and franchisors. The platform can fetch, sanitize and review data from different sources like POS, delivery partners, and bank statements. Then after the platform auto reconciles data at a very granular level of order or SKUs. It can then figure out discrepancies across orders and settlement while also figuring out the payouts. The platform can auto dock the financial details in a bookkeeping system.
By completely and holistically automating all the processes, the Kosh platform saves man-hours for the accounting team. Consequently, it reduces the cycle time by 99% and cost by 65% while ensuring 100% accuracy.
