Streamline Your Finances with the Best Restaurant Accounting Software

It's no surprise, deciphering spreadsheets and tracking every penny can take the joy out of running a restaurant. Therefore, restaurant accounting software is the chef’s secret ingredient for financial efficiency.

In this guide, you’ll learn how the best tools on the market save time, optimize costs, and let you get back to what you do best: serving great food.

Best accounting software for your restaurant business

When it comes to the restaurant business, savvy restaurant owners recognize the value of robust accounting software. Products like QuickBooks Online and Restaurant365 stand out as frontrunners, offering user-friendly interfaces and a wide range of features that revolutionize restaurant management.

The best restaurant accounting software:

• Serves as the foundation of efficient restaurant operations
• Offers comprehensive expense tracking
• Automates monotonous tasks for better compliance and accuracy
• Saves owners an average of 16 hours per month

This software lets owners focus on what they do best – delight customers with exceptional culinary experiences.

Here's a list of the top restaurant accounting software, based on reviews from FitSmallBusiness and The Balance SMB.

Restaurant365

Restaurant365 is a well-known management tool for restaurants that offers nearly everything a business needs to manage money and staff effectively. It works well with the top POS systems, which eliminates the need to enter data twice.

Pros 

• Made for restaurants to help with their challenges.
• Gets rid of paper invoices with automated AP.
• Helps increase sales, control food costs, and manage labor better.

Cons 

• Expensive, starting at $289 per month for basic accounting.
• The most popular package costs $399 per month and includes accounting, operations, and scheduling, billed annually.

MarginEdge

MarginEdge is a system for managing restaurants and their operations, focusing on invoices, food costs, and inventory. It works with Sage and QuickBooks, not as a standalone accounting system, but to help those systems meet the needs of restaurant businesses.

Pros

• Connects directly to your POS, providing menu and sales data to control food costs.
• Automates invoice processing, reducing paperwork and manual entry.
• Provides a daily report on controllable costs, showing where costs can be cut and reinvested.

Cons 

• While it helps with accounting, bookkeeping, and costing, it's not mainly an accounting platform.

Price

MarginEdge is priced at $300 per month per location for its entire platform. There are no different pricing tiers per region, so you get all the functionalities without having to compromise.

Food Service Ace

Food Service Ace is a set of mobile apps designed for restaurants, especially those with multiple locations. These apps can be customized to meet your restaurant's needs.

Food Service Ace offers decent accounting features, though not as comprehensive as its competitors. Its score is above average, but it could be higher if Food Service Ace added more accounting features like tracking and assigning income and expenses. However, we believe it’s more than enough for small restaurants, bistros, and cafes.

Fitsmallbusiness Review

Pros 

• Quickly completes major accounting tasks like accounts payable, accounts receivable, and budgeting.
• Provides insights from data-rich dashboards and reports.
• ACH payment processing eliminates the need for manual payments.
• Offers catering and commissary specialization features.
• Prioritizes inventory and procurement by collaborating with your preferred vendors to ensure stock availability.

Cons

• Consists of multiple mobile apps, which may be appealing to some but limiting to others who prefer desktops for accounting tasks.

Price  

The pricing for Food Service Ace is based on the selected services and the number of locations. It includes a set-up fee and a recurring monthly fee, as stated on their website.

Wave

Wave is designed for small businesses, startups, and freelancers in various industries. It stands out as one of the few free accounting software options available.

Wave definitely saves me anywhere from one to two hours a week. The invoice tracking is excellent and the year-end reporting is super helpful. I can just run off a couple of reports and send them to my accountant—it’s a three-button process at the end of the year. 

Mike Reisacher, Film Editor

Pros 

• Free software, which is great for very small businesses and new operations.
• Includes features for invoicing, accounting, and banking in the free package.
• Generates important reports like profit and loss statements, and tracks overdue invoices and bills.

Cons 

• It can be easy to outgrow as your restaurant expands since restaurants have complex accounting needs that can become more challenging with growth.

Price 

• The accounting platform is completely free. However, additional features like payment processing, payroll, and accounting advisors come with additional monthly costs.

ZipBooks

ZipBooks is a free accounting software that you can use to manage your restaurant's finances. It's not as advanced as Wave, but its paid options offer useful features.

Pros 

• Ensures completed books are locked, preventing accidental changes.
• Connects with multiple bank accounts.
• Allows bulk editing of transactions.

Cons 

• The free tier offers basic features like sending invoices and accepting online payments, which may not meet all the accounting needs of a restaurant.

Price

• ZipBooks is available for free, with additional paid plans starting at $35 per month. Custom pricing is available for businesses with more specific needs.

Features to look for in restaurant accounting platforms

In your selection of accounting software, give priority to systems equipped with inventory management, accounts payable and receivable functionalities, and seamless POS integration. These basic accounting features are the backbone of efficient restaurant management tools, enabling you to maintain control over your finances with crystal-clear financial reporting.

Also, seek software that exceeds basic offerings, including bill management and payroll features, for a well-rounded solution customized for the food service industry.

How software streamlines restaurant bookkeeping tasks

Accounting software transforms restaurant bookkeeping from a tedious task into a smooth process. By automating accounts payable and receivable, businesses can enjoy real-time reporting, reduced manual data entry, and a simplified tax time experience. This automation extends to generating invoices, managing bill pay, and conducting bank reconciliation, which collectively foster a robust financial structure for your restaurant’s operations.

Not to be overlooked, tax compliance, including sales tax, is made straightforward with accounting platforms that handle complex calculations and filings, phasing out the reliance on spreadsheets.

Financial tools for every restaurateur

Explore the variety of critical financial tools that equip restaurateurs to make informed strategic decisions. These tools, including cloud-based solutions and integrated POS systems, are indispensable for managing cash flow and capturing sales data. Real-time financial reporting has become a crucial feature, offering restaurateurs the ability to quickly pinpoint areas affecting their profit margin and take corrective action.

Pro tip: A reservation system, like Eat App offers reservations and guest trend reports so you know exactly what's happening at your restaurant.

Additionally, an accounting platform that centralizes and automates sales data capture can significantly reduce human errors and increase operational efficiency.

The role of mobile apps in managing restaurant finances

Mobile apps have emerged as an indispensable tool for on-the-go restaurant owners. Equipped with features such as:

• mileage tracking
• instant financial reporting
• expense tracking
• bill payments
• integrated banking features

These apps enable managers to manage their restaurant’s finances from anywhere. The convenience of these mobile apps, like ZipBooks, cannot be overstated, as they provide real-time insights into cash flows and transaction management.

This level of access and control is not just a luxury but a necessity for agile restaurant management.

The impact of cloud-based solutions on restaurant operations

Cloud-based accounting systems are reshaping restaurant operations, permitting staff to access financial data in real time from any internet-connected location. This accessibility is necessary for small businesses and catering services, allowing for efficient collaboration and organization of financial data in one place.

Not only do cloud-based systems streamline bookkeeping and payroll processes, but they also improve data security and facilitate financial close management through automation.

Customizing your accounting experience

For restaurateurs overseeing multiple locations, having customizable accounting experiences is important. Integrated systems enable centralized financial management, making it easier to compare the performance of different units side by side. Operators can take advantage of detailed KPI analysis, which is fundamental in identifying areas for improvement and growth.

Furthermore, custom pricing and features ensure that the accounting software meets the unique requirements of every restaurant type, whether you run a cozy bistro or a sprawling franchise.

Inventory tracking features for optimal stock management

Inventory management is a vital aspect of restaurant accounting software, aimed at waste reduction and effective stock-level management. Tools like those available in TouchBistro and Restaurant365 make inventory tracking a breeze, helping to calculate profit margins for menu items and streamline control over inventory purchases.

By tracking inventory with precision, restaurant owners can ensure optimal stock management, saving money and reducing waste.

Catering to the unique needs of food service accounting

The varied nature of the food service industry necessitates accounting software that addresses its distinctive requirements. For example, TouchBistro’s iPad system is perfectly suited for food truck operations, offering portability and features tailored to their business model.

Likewise, Food Service Ace is the go-to platform for businesses focusing on catering and commissary services, providing support for selling food at various locations or direct delivery to customers.

These specialized accounting services assist with everything from crafting catering proposals to planning and final billing, underscoring their indispensability in food service accounting.

Integrating POS systems with accounting software

The integration of POS systems with accounting software creates the financial structure vital for successful restaurant operations. This integration ensures that:

• Sales data is captured efficiently
• Payment processing is streamlined
• The customer experience is enhanced
• The risk of human error is minimized
• Valuable time is freed up for other aspects of restaurant management.

Furthermore, this centralized view of financial data, including sales and labor figures, is essential for timely decision-making and maintaining the health of your business.

Free accounting software options

For smaller or newly established businesses, cost-effective alternatives like ZipBooks provide free accounting software options without sacrificing crucial features. ZipBooks not only streamlines financial management but also speeds up the payment process by enabling online invoices, a significant advantage for cash flow management.

However, it’s important to recognize that while free platforms can offer significant savings, they may not provide the full spectrum of features needed by a growing business, which could necessitate a transition to more comprehensive solutions as needs evolve.

Understanding the lifetime costs of accounting software

The selection of appropriate accounting software for restaurants entails more than merely weighing up monthly costs. It’s about understanding the lifetime costs and ensuring that the investment aligns with your business’s financial goals. A thorough evaluation should include potential hidden fees and contract conditions, as these can significantly affect the total cost of ownership.

With options ranging from basic to fully automated systems, restaurant owners must carefully consider their choices when choosing accounting software that scales with their business’s growth.

Why your restaurant's booking system should work with your accounting software

Your restaurant's reservation system, like Eat App, should easily connect with your accounting software. This is important because it allows your booking system to share important information with your accounting software, such as how much money you make from bookings and details about your customers.

When these systems work together, you can manage your finances more smoothly and keep your accounting records accurate. For example, you can track how much money you earn from bookings, understand your customers' spending habits, and create reports to help you make smart business decisions.

Choosing a booking system that works with your accounting software, such as Eat App, can help you handle your restaurant's finances better and make your operations run more smoothly.

Get started with Eat App's free trial.

Takeaways

As we’ve explored the dynamic landscape of restaurant accounting software, it’s clear that the right tools can transform the financial heartbeat of a restaurant. From streamlining bookkeeping tasks to offering real-time financial insights, the best restaurant accounting software of 2024 empowers restaurant owners to focus on their passion for food and hospitality.

Remember, investing in a system that aligns with your restaurant’s unique needs and growth trajectory is not just a financial decision; it’s a step towards crafting a remarkable dining experience for your guests.

Frequently Asked Questions

What are the key features to look for in restaurant accounting software?

Look for restaurant accounting software with inventory management, accounts payable and receivable, POS integration, and comprehensive management tools for efficient financial oversight. These features are essential for effective restaurant accounting.

Can free accounting software like ZipBooks handle all my restaurant's financial needs?

No, free accounting software like ZipBooks may not fully meet the complex financial needs of a growing restaurant business. Consider using a more comprehensive solution for better management of your restaurant's finances.

How does POS integration with accounting software benefit my restaurant?

POS integration with accounting software benefits your restaurant by enhancing sales data capture, reducing errors in manual data entry, streamlining payroll processes, and offering a centralized view of critical financial data. These benefits can ultimately improve the efficiency and accuracy of your restaurant's financial management.

Are there accounting software options tailored for food trucks or catering services?

Yes, there are specialized accounting platforms like TouchBistro for food trucks and Food Service Ace for catering services, which offer tailored features for these businesses.

What should I consider when evaluating the lifetime costs of accounting software?

When evaluating the lifetime costs of accounting software, consider the total cost of ownership, including hidden fees, contract conditions, and scalability with business growth. Be thorough in assessing these factors to make an informed decision.