The best restaurant accounting software must address most, if not all, of the components of restaurant operations and back-office management, including accounting, inventory checking, cost management, and employee scheduling. These capabilities can help managers and owners track the financial aspect of the business without toggling between programs or constantly transferring data between different software. Check […]
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The best restaurant accounting software must address most, if not all, of the components of restaurant operations and back-office management, including accounting, inventory checking, cost management, and employee scheduling.
These capabilities can help managers and owners track the financial aspect of the business without toggling between programs or constantly transferring data between different software. Check out my evaluation of the five best restaurant accounting and bookkeeping software for managing your business.
Restaurant365: Best overall software for restaurant accounting
QuickBooks Online: Best accounting software for small restaurants, cafes, and startups
MarginEdge: Best for accounting software for restaurants with bars
Wave: Best free accounting software for food trucks and carts
Food Service Ace: Best for restaurant accounting software for caterers
Restaurant365: Best overall software for restaurant accounting
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QuickBooks Online: Best accounting software for small restaurants, cafes & startups
MarginEdge: Best accounting software for restaurants with bars
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Wave: Best free accounting software for food trucks & carts
Food Service Ace: Best restaurant accounting software for Caterers
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How I evaluated the best restaurant bookkeeping software
I assessed the best restaurant bookkeeping software based on basic accounting features, reporting, and useful restaurant-specific functions. Your accounting system must integrate with your POS solution, so I evaluated whether the tool integrates with any top restaurant POS systems like Toast, SpotOn, and Lightspeed.
Pricing: 15% of the overall score
My pricing score includes not only the cost but also whether month-to-month contracts are available and if there are any limitations on users, transactions, customers, or vendors.
Accounting features: 25% of the overall score
The general features include accounting features that all industries require, but the weights placed on features are specifically tailored to restaurants. Payroll, inventory management, and bill management are particularly important for restaurants.
Restaurant features: 25% of the overall score
The most heavily weighted restaurant feature is the number of sound POS systems available for integration. Other features I considered include tracking multiple locations and updating the cost of preparing recipes based on daily food prices, employee scheduling, sales forecasting, and EDI with vendors.
Ease of use: 20% of the overall score
My ease of use score includes a subjective evaluation and available customer support options. Finally, I considered whether the software had any accounting partners offering assisted bookkeeping services.
User reviews: 15% of the overall score
In rating user reviews, I checked user review websites to gain user insights and suggestions. I believe that feedback from actual and verified software users provides valuable information about its usability for small businesses.
Frequently asked questions (FAQs) about restaurant accounting solutions
The easiest and most convenient way to set up a restaurant accounting system is by hiring a professional accountant with experience in restaurant accounting. You can also get accounting software and modify it for restaurant accounting.
Such modifications include adding unique accounts, like raw materials, labor, overhead, and other special income and expense accounts for restaurants, like food sales, discounts, service fees, and delivery expenses. Additionally, some software will have robust onboarding included.
Yes, Excel can be useful in preparing certain restaurant schedules, but I highly recommend using bookkeeping software to track income and expenses for the easiest time. It’s not the raw data input that’s hard, but using your business data dynamically, which Excel isn’t capable of.
The best way to account for restaurant expenses is to group them by cost components: direct materials, direct labor, and overhead. Direct materials are ingredients that your restaurant uses, like meat and vegetables, while direct labor consists of payroll of all employees. Finally, overhead costs are those that can’t be traced directly to your products, like electricity, the use of condiments, and telecommunication expenses.
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The last bite
Restaurant365 is complete restaurant management and accounting software on a single platform. While it’s pricier than competitors, it won’t disappoint in terms of restaurant management features. However, if budget is your concern, then MarginEdge plus a QuickBooks Online plan is the best choice for affordability. Food Service Ace is also worth considering if catering is a significant component of your business.
Ray Delucci is a graduate of The Culinary Institute of America with a Bachelor’s in Food Business Management. He has experience managing restaurants in New York City, Houston, and Chicago. He is also the host of the Line Cook Thoughts Podcast, where he interviews and shares the stories of foodservice workers. Ray currently works in food manufacturing and food product development.
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