Best Bookkeeping Software for Restaurants

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Running a restaurant means dealing with high overhead, frequent inventory turnover, employee payroll, and a constant flow of transactions. When I first helped a restaurant owner organize their finances, they were buried under receipts, invoices, and bills, struggling to track expenses and revenue. Bookkeeping software made a world of difference by automating tasks, tracking inventory, and ensuring that they could keep a close eye on profits and costs.

The right bookkeeping software will help restaurant owners manage income, expenses, payroll, and inventory efficiently. Below are the best bookkeeping software options for restaurants to help you stay on top of your finances and grow your business.

Best Bookkeeping Software for Restaurants

1. QuickBooks Online

Why It’s a Powerhouse for Restaurants

  • Expense & Income Tracking: QuickBooks Online automatically tracks income from sales, expenses for inventory, utilities, payroll, and other restaurant-specific costs like vendor payments.
  • Payroll Integration: QuickBooks offers integrated payroll services, which can handle employee wages, tips, and tax deductions, crucial for a restaurant with a large staff.
  • Inventory Management: Track food and beverage inventory in real-time, helping you manage costs and reduce food waste.
  • Sales Tax Tracking: Automatically calculates sales tax for dine-in, delivery, and takeout sales, helping you stay compliant.
  • POS Integration: QuickBooks integrates seamlessly with popular restaurant POS systems like Square and Toast, automating sales tracking.

Pros

  • Advanced expense tracking, payroll, and inventory management.
  • Direct integration with POS systems for easy sales reporting.
  • Offers comprehensive financial reports and tax preparation.

Cons

  • Monthly subscription cost starts at $25, with higher costs for payroll and advanced features.
  • Can be complex for beginners.

Best For: Small to large restaurants looking for an all-in-one solution with advanced payroll, inventory, and tax tracking.

2. Xero

Why It’s a Great Option for Restaurants

  • Multi-Currency Transactions: Xero supports multi-currency transactions, perfect for restaurants that deal with international suppliers or take payments from overseas guests.
  • Inventory Management: Xero includes inventory tracking, allowing you to manage ingredients and stock levels, helping to control food costs and minimize waste.
  • Invoicing & Expense Tracking: Xero allows you to send invoices to vendors and track expenses automatically, making it easy to manage supplier costs.
  • POS Integration: Xero integrates with popular restaurant POS systems, syncing your sales data and ensuring that all transactions are accounted for.

Pros

  • Affordable pricing, starting at $13/month.
  • Great for managing inventory and supplier payments.
  • Multi-currency support for restaurants with international transactions.

Cons

  • Requires third-party apps for payroll management.
  • Can be difficult for new users to set up advanced features.

Best For: Restaurants that need inventory management and deal with international suppliers, and those seeking a more affordable alternative to QuickBooks.

3. Restaurant365

Why It’s Tailored for Restaurants

  • Built for Restaurants: Restaurant365 is designed specifically for the foodservice industry, offering features like food cost tracking, inventory management, and recipe costing.
  • Labor Management: Track employee schedules, labor costs, and payroll all in one system, helping to control staffing costs and improve efficiency.
  • POS Integration: Automatically import sales data from popular POS systems like Toast, Square, and Clover, making it easy to track revenue and food costs in real time.
  • Financial Reporting: Restaurant365 offers detailed financial reports specific to the restaurant industry, such as food cost analysis, labor cost tracking, and profit margins.

Pros

  • Built specifically for restaurants, with tools tailored to the industry.
  • Comprehensive inventory, food cost, and payroll management.
  • POS integration ensures accurate sales and expense tracking.

Cons

  • More expensive than general-purpose software.
  • A steeper learning curve due to advanced industry-specific features.

Best For: Restaurants needing in-depth, restaurant-specific financial management and those looking for integrated food cost and labor tracking.

4. Zoho Books

Why It’s Ideal for Budget-Conscious Restaurants

  • Affordable: Zoho Books is one of the most affordable bookkeeping solutions, offering a range of pricing tiers starting at $0 for basic features.
  • Expense Tracking & Invoicing: Easily track supplier expenses, utility bills, and rent, while also creating invoices for catering events or large orders.
  • Inventory Management: Track your inventory, including food and beverages, ensuring you’re keeping costs down and reducing waste.
  • Mobile Access: Manage your books from anywhere with Zoho Books’ mobile app, perfect for restaurant owners who are always on the go.

Pros

  • Affordable, with a free plan for basic features and higher tiers for more advanced tools.
  • Simple to use and easy to set up.
  • Includes basic inventory management, expense tracking, and invoicing.

Cons

  • Limited features compared to more advanced software like QuickBooks and Restaurant365.
  • No built-in payroll (requires a third-party app).

Best For: Small restaurants or food trucks on a tight budget needing basic bookkeeping and inventory tracking.

5. Wave

Why It’s a Great Free Option for Restaurants

  • Completely Free: Wave offers free bookkeeping software with no subscription fees, making it perfect for smaller restaurants or startups.
  • Expense & Income Tracking: Track all your expenses, including supplier payments, rent, and utilities. Automatically categorize transactions and sync with your bank.
  • Invoicing: If you run a catering side-business or need to invoice for large orders, Wave offers free invoicing that looks professional.
  • Receipt Scanning: Use the Wave app to scan receipts and track expenses, making it easy to stay organized with restaurant purchases.

Pros

  • Completely free accounting software, including invoicing and receipt scanning.
  • Easy to use and set up, even for non-accountants.
  • Perfect for small restaurants or food trucks.

Cons

  • No inventory management, making it harder to track food costs.
  • No built-in payroll, though it can be added for a fee.

Best For: Small or startup restaurants on a budget that need basic bookkeeping and invoicing without a subscription.

6. TouchBistro (With QuickBooks or Xero Integration)

Why It’s a Solid Restaurant-Focused Choice

  • Restaurant-Specific Features: TouchBistro is a restaurant POS system that integrates with QuickBooks and Xero for full-service bookkeeping. It helps with tableside ordering, menu management, and staff scheduling.
  • Inventory Tracking: Built-in inventory management helps you track ingredients, reduce waste, and improve ordering efficiency.
  • POS & Financial Sync: TouchBistro integrates with QuickBooks or Xero, allowing you to sync your POS sales data with your bookkeeping software automatically.
  • Labor Management: Manage employee scheduling, hours, and tips within the system, then sync payroll with your accounting software.

Pros

  • Tailored specifically for restaurants with POS, inventory, and labor tracking.
  • Integrates with QuickBooks and Xero for comprehensive bookkeeping.
  • Handles the restaurant-specific needs like food cost tracking and menu management.

Cons

  • Requires integration with third-party software for full bookkeeping functionality.
  • Can be expensive, especially for smaller restaurants.

Best For: Restaurants already using or planning to use TouchBistro for POS and looking to integrate it with QuickBooks or Xero for bookkeeping.

How to Choose the Right Bookkeeping Software for Your Restaurant

When selecting bookkeeping software for your restaurant, consider the following key factors:

  • POS Integration: Make sure the software integrates with your existing POS system to automatically track sales and reduce manual data entry.
  • Inventory Management: Choose software that helps you manage inventory and track food costs, which are critical for a restaurant’s profitability.
  • Payroll & Labor Tracking: Restaurants often have many employees, so opt for software with payroll and labor cost management features.
  • Sales Tax Tracking: Ensure the software can handle sales tax reporting for dine-in, takeout, and delivery services.
  • Ease of Use: You don’t want to spend too much time managing your books, so choose software that is easy to use and integrates smoothly with your operations.

Conclusion: QuickBooks Online is the Top Choice

For most restaurants, QuickBooks Online offers the best balance of robust features, ease of use, and POS integration. It handles everything from expense tracking and payroll to inventory management and sales tax tracking, making it perfect for both small and large restaurants. If you’re managing a larger operation with specific restaurant needs, Restaurant365 or TouchBistro (with QuickBooks or Xero integration) are excellent alternatives.

For smaller restaurants or food trucks on a budget, Wave and Zoho Books are great, affordable options that cover essential bookkeeping tasks like expense tracking, invoicing, and basic inventory management.

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