by Wondering what the best accounting software is for your restaurant? You are in the right place!
You have now decided to move beyond do-it-yourself (DIY) spreadsheets for your restaurant accounting, but with so many options it is always daunting to choose the right accounting software for your business.
Our team here decided to spend some time researching, asking around, creating a framework for ranking, and preparing a shortlist of some of our favorite accounting software, so that you do not have to spend hours researching your next restaurant accounting software decision.
Read Also: Why Your Restaurant Needs an Accountant or Bookkeeper
Table of Contents
Criteria of Great Restaurant Accounting Software
To give you a framework, we set out some factors below that you could consider to make that purchase. Here they are:
Suitable for Your Bookkeeping Process
Restaurant accounting is heavy on transactions (from the customer’s side, from the purchasing standpoint, from the partner side, and so on) and sometimes need some special processes like opting for a 4-week accounting period, and an accrual system of accounting to name a couple.
Run through your existing process, and list down the features that you need in the software.
For instance, you need smart reconciliation tools,
Consult Your Accountant And/Or Bookkeeper
Including your accountant or your bookkeeper in your decision-making process is highly advisable. Chances are they have been working with restaurants, bars, and cafes for a while, and can guide you with the best insights. They will be co-using the software with you, so it is important that they feel comfortable with the interface.
Additionally, most of the software comes with free demos and trials, and they can be your test team and help you make a more thoughtful software decision.
Fits Your budget
The budgeting criteria needs no reminder, but remember, cash is king!
It is important to note, even though one software may be slightly more expensive than another, it may increase productivity by 2x by being geared towards your restaurant configuration. This means it could save you countless labor hours.
Don’t worry, we have already ranked our top picks according to the price in this article as a good starting point for you. Even though some options are more expensive, when you see the trade-off with the time saved and the efficiencies with these kinds of tailored software, it could be a worthy investment for your restaurant.
For instance, having the optimized accounting software reduces the manual entries recorded by a bookkeeper, and equates to fewer hours paid to your bookkeeper.
Compliant With Your Data Preference
It could be that you are often on the move, and would like to see the accounting and financial data on multiple devices and from anywhere (yes even on vacation). Perhaps you prefer that your restaurant accounting data is only stored locally for data protection and privacy reasons.
So, ask your accountant or bookkeeper, your IT department (that guy you call when all the computers are down), and add it to the list of your needs.
List Your Desired Integrations
We get up in the morning, check our Instagram to see our friend’s latest post and the industry professional dish of the day. Then we spy on our next-door restaurant competition on Yelp. To stay reinvigorated we then look up some inspirational posts on Pinterest. This is all before we get out of bed to start our day.
The point is that with so many applications and software available to us, we are already using some, for instance, things like inventory or vendor purchasing. Many accounting software has the possibility to integrate with other software, or even bank and credit card accounts for some automated entries.
Think of any integrations that you might want, and if one of the options happens to provide them all, then move it up to the top of the list!
Comes Highly Recommended by Your Industry Friends
It is always a good idea to ask around in your circle of restaurant, bar, and cafe professionals/ business owners about what software they are using.
Of course, every restaurant is unique and has different processes and systems in place, but at the end of the day, the nature of the restaurant industry is very similar. Ask friends and colleagues for recommendations, or just online on different websites and forums (ask below in the comments, we are always happy to provide feedback).
This quick research or questioning could help you unearth some pros and cons that you otherwise might not have considered.
Competency to Use it
As amazing as it is that the accounting software available today is now able to provide us with almost any kind of automation, and integrations, and reporting, and so on, we sometimes get blinded by the plethora of options.
Always ensure that the software is user friendly for you and your hospitality team.
And if not, then account for the extra expense you will have for taking the help of an IT wizkid (or IT professional) to set it up, teach your team and help maintain the regular usage of the software.
Restaurant Accounting Software Comparisons
We believe that by now, you already are equipped to make that list of criteria (wants and needs) and know what you must have in accounting software.
As the next step in the process of choosing the right restaurant accounting software, as promised, here is a shortlist of unbiased recommendations from our side that can help you get started.
These software are tailored for the needs of restaurant accounting and are popular choices in the industry.
Each of these software’s are given a points rating (out of 10), so as to get a quick understanding of the strength and weakness of each of these software.
Further, after a short introduction, you will also find a summarized table where-in we ranked these restaurant accounting software based on the same criteria so you also get a relative comparison between the software and can match them better with your list of demands.
So, here you go:
QuickBooks Online
QuickBooks Online (QBO) is a web-based accounting solution made by Intuit that focuses on individual accountants and small businesses.
Their advanced version is more tailored for medium to large enterprises with more complex accounting features (think accounting teams, custom user permissions, multi-entity, etc.).
QuickBooks is one of the popular choices in the industry and covers more or less all general features required in a restaurant accounting software. Cloud accounting, invoicing, online banking, accounting reports, cash flow management, mobile applications, multiple users, and free unlimited support are just some of the awesome features QuickBooks has to offer.
Another key benefit of QuickBooks Online that is often overlooked, is its robust application marketplace. This allows you to seamlessly link to your point of sale system, sometimes eliminating the process of daily sales manual entry.
That was just one example, tons of other efficient applications exist to help you to better run your business.
Some cons to look out for
Some usual features like certified
Another common disappointment with this software is the navigation, it is time-consuming and also confusing for first-time users.
Pricing
They come in 3 packages, with monthly and yearly pricing option:
- Simple start: $14/month or $114/year
- Essentials: $21/month or $199/year
- Plus: $29/month or $275/year
Most restaurants will need the essentials and plus offerings to handle their day to day needs.
Scoring QuickBooks Online on Relevant Criteria
| Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|
| 9 | 6 | 8 | 7 | 8 | 9 |
QuickBooks Desktop
While QuickBooks Online is a subscription service and allows you to work on any device anywhere, QuickBooks also has a desktop version which is a one-time purchase software for desktop computers.
This can also live on a remote server allowing you to access from anywhere but comes with a hefty additional cost.
QuickBooks Desktop is more suited for businesses that want locally-installed software, and do not care much about mobility. There are fewer integrations with this version, but more or less the same features. QuickBooks desktop comes with different product versions: Pro, Premier, and Enterprise, each plan progressing in terms of a number of users and features.
There are some features that are more extensive in the desktop, for instance, reporting. The desktop has way more report plans and templates to choose from, especially in the premier and enterprise versions.
Additionally, it has more robust search options and memorized transactions. Sales orders, better lead and contact management, are some more examples where desktop takes the lead over the online version of the software, making this a more robust software for catering operations.
For those that like the old school look and feel of QuickBooks Desktop, those looking for a more cost-effective solution or simply not interested in the options the cloud has, then this is the QuickBooks version for you.
This has been a tried and true restaurant accounting solution for decades, so don’t overlook it!
Software Cons
QuickBooks desktop is not well suited for automation. Tasks like audio-scheduling of invoicing, recurring invoices, invoice reminders, etc. are not that advanced in the desktop version.
When you choose the advanced version of Quickbook Desktop, it could fall on the more expensive side (although it is hard to say if it is expensive, it really depends on the number of years and additional users that are part of your plan).
QuickBooks desktop also has a steep learning curve geared towards professional accountants (although, once you overcome the learning curve, it becomes a user-friendly interface).
Pricing
They come in 3 packages:
- Pro: $299.95
- Premier: $499.95
- Enterprise: $1213/year
Most restaurants can get away with the Pro and Premier versions.
Scoring QuickBooks Desktop on Relevant Criteria
| Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|
| 9 | 7 | 5 | 7 | 7 | 7 |
Sage 50cloud
Known for its robustness, Sage 50 cloud has a well-covered list of financial tools with several options to customize based on your needs. From bank reconciliation, fixed asset management,
The software also has the possibility to integrate with Microsoft 365 which helps with data sharing even though it’s a local software. The software is especially praised for its strong inventory management tools, which is a shame, as we recommend tracking inventory outside of your main accounting software.
Sage 50cloud is best suited for companies that have full-time accountants, as the product is geared towards those who understand digital accounting well (the interface is more complex than many other available options). The software is also praised for its robust set-up help. The starting up tool helps you understand the process, choose their different options (e.g. choose between cash and accrual), helps you optimize your structure (e.g. your accounting period, fiscal year), and prepares you for smooth use.
With its 30-day trial option, it is a good choice to set it up, try it with the team, and test if it meets the firm demands.
Software Cons
The interface is not crisp or polished and tends to look outdated. Owing to its multiple features, some users also find it crowded. Several users also complained about the software being slow and taking a long time to load information.
Additionally, if you compare Sage 50cloud to the other software on the market, it lacks the online customer knowledge base, regular updates cycle, and robust customer support.
Pricing
It comes in four packages based on number of features and users
- Pro Accounting – $50.58/month or $503.23/year
- Premium Accounting – $78.21/month or $778.63/year
- Quantum Accounting – $197.55/month or $1,981.75/year
Scoring Sage 50cloud on Relevant Criteria
| Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|
| 7 | 4 | 6 | 5 | 7 | 7 |
Xero
One of the fastest-growing accounting software, Xero is a web-based accounting solution suitable for small and medium growing businesses. It is robust and has sophisticated features, a variety of reports, a high number of integrations, and unlimited users. Common positive praise for Xero is their mobility. It also offers several automations such as sales tax lookup, group invoicing, and email templates to name a few.
Xero is a lot cheaper than many software’s in the market such as QuickBooks. It is also considered as one of the most user-friendly and simple interfaces to use. For non-accountants, the reconciliation feature is clean and user friendly simplifying the checks and balance process.
The product also has glowing user reviews from a core user base that loves the product.
Software Cons
Although it is easy to use and has a well-organized interface there are many reviewers who complained about not being able to access actual representatives for support. Xero has a very strong support resource online in the form of videos, popups, and blogs, but the customer support team still is not their strongest feature.
Reviewers also were disappointed with the mobile version of the software and mentioned the presence of many bugs and crashes.
Pricing
They come in 3 packages:
- Early: $9/month
- Growing: $30/month
- Established: $60/month
Scoring Xero on Relevant Criteria
| Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|
| 9 | 8 | 8 | 5 | 9 | 8 |
Restaurant 365
Used by many popular brands including Sbarro, Texas de Brazil, and so on, Restaurant365 is a software designed specifically for restaurants with multiple locations. It is a very restaurant-specific accounting and operations platform, with all the features required for a regular restaurant such as accounting, inventory, scheduling, and AP automation.
Known for its generous options for integrations (directly with the POS system, banking, vendors, and so on), it offers a wide range of restaurant business tools including labor scheduling, real-time inventory valuing, automatic cost updating, recipe creation and analysis and so on. Though it currently does not have
Some other favorite features of the users include customization of periods (for instance to compare P&L to your projected budgets on a daily/weekly basis), ease of use (since all features are tailored for restaurant accounting, things get easy and quick), pre-built reports, and ability to share real-time information with site-level teams. The software allows the local team to run reports for any time period without having to wait for the corporate level team to publish information.
Additionally, being a fully cloud-based solution offer the flexibility most restaurants need to operate as a 21st-century establishment.
Software Cons
Although mostly liked by the users, some complained of software glitches. For instance, reports coming out with merged columns and wrapped texts, and hence they had to manually format the documents. Another common complaint is the inability of the software to record historical data (no audit trails are available, which is a problem for a scaling organization).
Some current restaurant customers are very unhappy with the current software updates being offered by the company.
Pricing
The softwares offers 4 different packages, that you can upgrade to as you grow:
- A La Carte – From $49/Month/location
- Core – $249/month/location
- Essential – $369/month/location
- Professional – $459/month/location
Scoring Restaurant365 on Relevant Criteria
| Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|
| 8 | 5 | 8 | 4 | 8 | 9 |
All Softwares at a Glance
This table ranks each software on factors that are important in your decision making. This summary should be helpful to narrow your list even further.
| Software | Features Available | Pricing | Ease of Use | Customer Support | Reviews | Design |
|---|---|---|---|---|---|---|
| QuickBooks Online | 9 | 6 | 8 | 7 | 8 | 9 |
| QuickBooks Desktop | 9 | 7 | 5 | 7 | 7 | 7 |
| Sage 50cloud | 7 | 4 | 6 | 5 | 7 | 7 |
| Xero | 9 | 8 | 8 | 5 | 9 | 8 |
| Restaurant 365 | 8 | 5 | 8 | 4 | 8 | 9 |
Final Thoughts on the Best Accounting Software for Your Restaurant
The process of choosing a restaurant accounting software can seem like a daunting task. Following our simple framework as outlined above can help you narrow down the options for your restaurant business. Most importantly, a majority of the accounting software comes with free trials for you to try it out for your restaurant, before making a long term commitment.
Don’t forget, weighing/ranking your priorities for decision making can help you pick out the best option for your growing restaurant business.
As always, feel free to drop questions in the comments or email me directly.
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