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Managing a successful restaurant is no easy feat. In fact, it doesn’t consist of one feat at all! It’s more like a neverending juggling act of important tasks. Stocktake and ordering, staff rotation and management, new promotions and marketing…the list goes on.
In between all of this, you’re also expected to keep a close eye on your restaurant’s expenses and earnings to stay profitable. Talk about a tall order! Aside from investing in stock management software to streamline your BOH operations, you need accounting software for restaurants on your side.
Good accounting software is a must, regardless of your restaurant’s size, scale and operations. You need a centralised system to help you stay on top of all financial transactions taking place. A quick search on Google will show you just how many available accounting software options are on the market.
The question is, which one is right for you? Which system suits your needs and price point? In this guide, we outline our top picks for accounting software to help you select the ideal solution for your restaurant.
What is a restaurant accounting system?
A restaurant accounting system can essentially be any bookkeeping system that tracks your restaurant’s financial transactions. This can include expenses, purchases, stock, as well as staffing costs and other overheads. But, thanks to the rise of cloud-based, easy-to-use accounting software, it’s become even easier to stay on top of your financial data.
Most modern accounting software can do things like help track costs, create invoices and even integrate with your point of sale (POS) system. But, not all accounting systems offer the features and capabilities you might be looking for.
To help make your decision easier, read on for our restaurant accounting software comparison.
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What are the best accounting software systems for restaurants?
Keep in mind that there’s no one “best” restaurant bookkeeping software. Different solutions will be the best choice depending on a restaurant’s size, operations, team and earnings. That being said, there are a few top-rated software solutions on the market. Let’s take a closer look at them below.
Xero
One of the most well-known restaurant accounting systems is Xero. Although Xero is a standalone accounting software, its features and price plan make it an easy first choice for restaurants of every size. It’s cloud-based and extremely user-friendly, meaning you don’t need previous accounting experience to successfully operate it.
Xero offers an array of tools that make restaurant accounting a breeze, like invoice management, purchase and expense tracking, invoice creation and bank reconciliation.
Did we mention it also currently integrates with over 1000 apps and software, including growyze? This is great as despite Xero’s easy-to-use features, one area where users report it lacking is in its inventory management features.
However, when you decide to pair Xero for accounting with growyze for inventory management, it’s a great match. In fact, it means with just a click you can seamlessly send invoices from growyze to Xero. Furthermore, with growyze’s three-way validation feature you can automatically check for consistency between stock orders, deliveries and invoices, with notifications to let you know when something doesn’t match.
This saves you ever having to manually input invoices again, check them line-by-line, or pay for a third party tool that just copies over your invoices into Xero. Goodbye manual data entry and hello an inventory management and accounting system that works together perfectly. Sounds like a win to us! …
Budget:
Between £14.00 and £49.00 per month.
Pricing plans:
Xero offers several pricing plans that cater for restaurants of all sizes. The Starter Plan costs £14.00 per month and is ideal for small restaurants just starting. The Standard Plan is £28.00 per month and best suits small restaurants enjoying growth. Premium costs £36.00 per month and is the best option for larger, more established restaurants. Lastly, you have Ultimate at £48.00 per month which provides additional payroll and expenses features, as well as analytics.
Another great thing about Xero is it offers a free 30-day trial of all its features before you have to decide on a plan that best suits your operations.
Key Xero features for restaurants:
- Income and expense monitoring
- Cashflow tracking and management
- In-depth financial reporting
- Payroll processing and management
- Vendor payments
- POS and inventory management system integrations
- Bank reconciliation and invoicing
- Online invoice payment
The best option for:
Because of its extensive features and integrations that simplify accounting and its tiered pricing plans, Xero is one of the best accounting software for restaurants. No matter your size, budget or requirements, there’s an ideal plan for you.
Find out how Xero can enhance your restaurant accounting here.
QuickBooks
QuickBooks is one of the longest-running accounting software solutions on the market. Offering essential accounting features, QuickBooks also provides key capabilities for restaurant accounting. A few of these include invoice creation and sending, cashflow monitoring and performance tracking and reporting.
It’s user-friendly and designed for restaurant owners and managers with no accounting background, meaning you'll be able to operate it with ease. But, if you do run into any challenges, it also offers support, including 24/7 support for premium users.
Like Xero, QuickBooks offers a variety of plans that come with specific features tailored to different restaurants. But, it’s also a slightly pricier option, and the more restaurant-specific accounting features are found in the middle and top-tier pricing plans.
Budget:
Between £10.00 and £70.00 per month.
Pricing plans:
QuickBooks offer a variety of pricing plans, starting from as little as £10.00 per month (although this is the “self employed” option), up to £70/month for the Advanced option.
The Essentials plan at £24.00 per month is QuickBooks’ most popular option, and is perfect for businesses that have suppliers to manage. Although for £34.00 a month the Plus option is well-suited to restaurants as it covers not only suppliers but also stock, VAT and income tax, all of which may be important considerations for your business’s accounting.
Key QuickBooks features for restaurants:
- Income and expense monitoring
- Bills and employee management
- Invoice creation and payment receipts
- Online invoice payment
- Cash flow monitoring
- Financial reporting and insights
- POS system integrations
- Sales tax tracking and monitoring
- Payroll as an add-on feature (at additional cost)
The best option for:
Due to its somewhat pricier plans, QuickBooks would best suit larger, more established restaurants instead of smaller businesses or restaurants just launching.
Take a look at QuickBooks’ website to learn more about their accounting features.
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Sage
Like QuickBooks, Sage is another well-known giant in the accounting software market. Sage is a robust platform that offers core accounting features like accounts payable, accounts receivable, general ledger, cash management and order management for businesses in every industry. The restaurant industry is no exception, and Sage provides an array of features that streamline your restaurant management operations.
As a larger restaurant bookkeeping system, Sage is more complex compared to the other options on this list. As a result, it’s not as beginner-friendly either so owners and managers without prior accounting experience may find it difficult to navigate.
Budget:
Between £14.00 and £36.00 per month.
Pricing plans:
Sage has three pricing plans, each with designated features and user numbers. Its cheapest plan is called Start and costs £14.00 a month, offering the basics of accounting features and limited to one user.
The Standard plan is £28.00 per month. It provides all the features of Start, along with reporting and forecasting capabilities. It also offers unlimited monthly users. The most comprehensive plan is the Plus plan, costing £36.00 per month. It expands on both the features of Start and Standard and includes multi-currency banking.
Key Sage features for restaurants:
- Invoice creation and payment receipts
- Online invoice payment
- Cash flow tracking and forecasting
- Payroll processing and management
- Centralised bank transaction visibility
- Financial reporting and insights
- Sales tax tracking
- Automatic bank reconciliation
- Multi-currency banking
The best option for:
Although it’s not the most expensive accounting software for restaurants, Sage is a more complex system. It’s ideal for larger restaurants and restaurant chains that have designated accounting experts who can leverage the system to its full potential.
Find out more about Sage’s accounting features. Visit the official website here.
Freshbooks
Freshbooks is an accounting software that offers best-in-class bookkeeping features at an affordable price. Designed with simplicity and ease of use in mind, Freshbooks is an example of great small restaurant accounting software.
Freshbooks offers cloud-based accounting capabilities like invoice creation and sending, expense tracking and detailed financial reporting. It also integrates with a variety of POS systems, merging your restaurant POS data with your accounting software.
Looking at what users say, the only slight downside is the support experience. Whereas other restaurant accounting softwares offer immediate chat support (great for solving issues quickly), Freshbooks only offers phone or email support, with the email support working on a queue system which may mean it takes a while to get a response.
Budget:
Between £6.00 and £17.50 per month.
Pricing plans:
Freshbooks has 3 tiered pricing plans. Lite at £6.00 per month is the most basic package, offering management of invoices for up to five clients. Plus offer invoice management for up to 50 clients as well as more detailed features for expense tracking and recurring billing. Last but not least, Premium at £17.50 per month offers the features of both Lite and Plus plans but with the addition of the ability to track bills, payments and vendors with a full accounts payable function.
Key Freshbooks features for restaurants:
- Income and expense tracking
- Invoice creation and payment receipt
- Double-entry accounting
- Cashflow monitoring
- Payroll processing and management
- Bank reconciliation
- Financial reporting and insights
- POS system integration
The best option for:
As the most cost-effective option on our list, Freshbooks is definitely a great accounting software for small restaurants and restaurants just starting. Even the most affordable Freshbooks pricing plan still offers comprehensive accounting services compared to larger, more expensive competitors. However if you’re someone who doesn’t have too much accounting experience, you may be better off with an option like Xero, where support is fast and guaranteed.
Find out more about Freshbooks’ accounting services here.
growyze - helping you to keep a handle on the numbers
Streamlined stock management is a key component of your accounting operations. Don’t leave stocktake and inventory management to guesswork and estimations. Get on top of your BOH to ensure your restaurant accounting is accurate and your operations are profitable!
We can help. growyze integrates with accounting software such as Xero, helping to streamline and enhance your accounting operations. Book a demo and we’ll show you how.
