Running a coffee shop involves more than just brewing the perfect cup of coffee. You’ve got to keep track of inventory, handle payroll, manage daily sales, and ensure the finances are in order. The right bookkeeping software can streamline these processes, saving you time and headaches while letting you focus on your passion—serving great coffee!
Here’s a rundown of the best bookkeeping software for coffee shops, starting with a user-friendly, versatile favorite—FreshBooks.
1. FreshBooks
When I first helped a small coffee shop transition to FreshBooks, the owners loved how easy it was to manage their invoices, track daily expenses, and keep tabs on profits. FreshBooks is especially great for coffee shop owners who need simple, reliable bookkeeping without the complexity of advanced accounting systems.
Key Features:
- Expense Tracking: Easily track daily expenses such as inventory purchases, utilities, and equipment repairs.
- Invoicing: Perfect for catering or wholesale orders. Send customized invoices with your coffee shop’s branding.
- Time Tracking: Useful if you pay baristas or staff based on shifts or hours worked.
- Inventory Management: While basic, you can manually track coffee beans, milk, cups, and other inventory.
- Reporting: Generate profit and loss statements, expense reports, and more to keep tabs on your shop’s financial health.
Why It Works:
FreshBooks is an excellent choice for smaller coffee shops that don’t need advanced features like in-depth inventory management or payroll integration. Its user-friendly interface makes it easy for anyone—whether you’re a barista or a manager—to track income and expenses. It’s ideal for coffee shops with a focus on simplicity.
2. QuickBooks Online
QuickBooks is one of the most popular accounting software options, and it’s perfect for coffee shops that are scaling or need more detailed financial tracking. A medium-sized coffee shop I worked with had multiple locations, and QuickBooks allowed them to track each location’s financials separately while keeping everything organized in one account.
Key Features:
- Inventory Management: Track supplies like coffee beans, milk, cups, and syrups in real time.
- Sales Tracking: Sync your POS system to automatically track daily sales, including tips and taxes.
- Payroll: Manage employee payroll, with automatic tax calculations and direct deposit.
- Custom Reporting: Generate detailed reports to analyze sales, expenses, and profits across different locations or time periods.
- Integration with POS Systems: Works well with POS systems like Square, allowing you to sync sales data directly into QuickBooks.
Why It Works:
QuickBooks is perfect for coffee shops that need more control over their financials, especially if you have multiple locations or a growing business. Its ability to integrate with POS systems and manage payroll makes it a comprehensive solution for larger or expanding coffee shops.
3. Xero
Xero is a cloud-based accounting software that’s known for its simplicity and flexibility, which is ideal for small to medium-sized coffee shops. A café I worked with used Xero to automate their bookkeeping tasks while tracking daily sales and expenses with minimal effort.
Key Features:
- POS Integration: Integrates with major POS systems like Square or Vend to sync sales data automatically.
- Expense Management: Track daily expenses such as rent, utilities, and inventory purchases.
- Bank Reconciliation: Connect your bank account to reconcile transactions and ensure your books match your real-world bank balance.
- Custom Invoices: Easily create invoices for catering orders or wholesale deliveries.
- Mobile App: Manage your coffee shop’s finances on the go, from tracking sales to paying suppliers.
Why It Works:
Xero is an excellent option for coffee shop owners who want easy-to-use software that automates a lot of the daily bookkeeping tasks. It’s especially helpful for tracking inventory, reconciling bank transactions, and managing expenses with minimal manual effort.
4. Zoho Books
Zoho Books is part of the larger Zoho suite, making it an attractive option for coffee shop owners who want to integrate their bookkeeping with other business tools, such as CRM and inventory management. I once recommended Zoho Books to a coffee shop that also sold merchandise and catering services, and it worked perfectly for managing both the shop’s daily operations and external sales.
Key Features:
- Inventory Tracking: Manage your stock of coffee beans, milk, cups, and more with automatic inventory tracking.
- Customizable Invoices: Easily send invoices for catering orders or event bookings, with customizable templates.
- Expense Tracking: Categorize and track daily expenses to keep your budget on track.
- POS Integration: Works with Zoho’s own inventory management system or integrates with external POS systems.
- Tax Compliance: Automatically calculates taxes on sales and purchases, ensuring compliance.
Why It Works:
Zoho Books is a great fit for coffee shops that need both basic bookkeeping and inventory management. Its integration with other Zoho apps also makes it ideal for those who want an all-in-one solution for managing everything from sales to customer relationships.
5. Wave Accounting
Wave is a free accounting software that’s perfect for small coffee shops with limited budgets. I’ve recommended Wave to coffee shop startups because it provides all the essential bookkeeping tools without the need for costly subscriptions.
Key Features:
- Expense Tracking: Keep track of daily expenses like coffee purchases, utilities, and supplies.
- Invoicing: Easily create and send invoices for events, catering, or wholesale coffee orders.
- Income Tracking: Monitor daily sales and other sources of income.
- Free Payroll (Limited Regions): In some regions, Wave offers free payroll services, ideal for coffee shops with a few employees.
- Reports: Generate financial reports such as profit and loss statements, balance sheets, and more.
Why It Works:
Wave is a perfect budget-friendly option for small coffee shops just starting out. It covers all the basics without any cost, making it ideal for owners who are just getting their feet wet with bookkeeping.
6. Square (POS with Built-in Accounting Features)
If you’re using Square as your point-of-sale (POS) system, you’re in luck. Square offers built-in bookkeeping features that make it easier to track sales, expenses, and inventory all in one place. I’ve seen many coffee shops thrive by integrating their POS system with accounting tools for seamless operations.
Key Features:
- POS and Sales Tracking: Automatically tracks daily sales, including cash, card payments, and tips.
- Inventory Management: Manage your coffee beans, cups, syrups, and other items directly through the Square POS.
- Invoicing: Send invoices for catering, wholesale orders, or event services.
- Integration with QuickBooks and Xero: Sync sales data with accounting software to keep your books up to date.
Why It Works:
Square’s POS system is built for small businesses like coffee shops, and its accounting features make it easy to track sales and manage daily finances. For coffee shops already using Square, this solution minimizes the need for additional accounting software and streamlines your entire financial workflow.
What to Consider in Bookkeeping Software for Coffee Shops
1. POS Integration
Since daily sales are the bread and butter of your coffee shop, make sure your bookkeeping software integrates with your point-of-sale system to automatically track sales, payments, and tips.
2. Inventory Management
Tracking inventory is crucial for coffee shops, as you constantly need to manage your stock of coffee beans, milk, cups, syrups, and other ingredients. Look for software that offers easy-to-use inventory tracking.
3. Payroll Management
If you have employees, consider software that can handle payroll, including calculating tips, taxes, and direct deposits.
4. Expense Tracking
Make sure your software can easily categorize and track daily expenses like rent, utilities, equipment, and supplies.
5. Financial Reporting
You’ll need a clear view of your profits, losses, and cash flow. Choose software that can generate financial reports tailored to your coffee shop’s needs.
Comparison Table for Quick Review
| Software | Best For | Key Features | Price Range |
|---|---|---|---|
| FreshBooks | Small to medium coffee shops | Expense tracking, invoicing, basic inventory | Starts at $15/month |
| QuickBooks | Larger coffee shops or franchises | Inventory management, payroll, POS integration | $30+/month |
| Xero | Growing coffee shops | POS integration, bank reconciliation, reporting | $13+/month |
| Zoho Books | Shops with merchandise & catering | Inventory tracking, CRM integration, invoicing | Starts at $15/month |
| Wave | Small startups, budget-conscious | Free accounting, invoicing, expense tracking | Free |
| Square (POS) | Shops using Square POS | POS with built-in sales tracking, inventory management | Free for basic, paid add-ons |
My Top Recommendation
For small to medium-sized coffee shops, FreshBooks is a great option due to its ease of use and straightforward features like expense tracking and invoicing. However, if you’re managing a larger coffee shop or multiple locations, QuickBooks is your best bet with its robust payroll, inventory management, and POS integration.
For those just starting out or on a tight budget, Wave is a solid free option that covers the essentials, while Square is the perfect fit if you’re already using their POS system and want a seamless all-in-one solution.