Everyone running a scalable restaurant business desires to know the best accounting software.
For starters that don’t have the slightest idea, 60% of restaurants close within their first year of business due to financial mismanagement.
That alone is a very terrifying stat, But as scary as it might sound, the solution is a rather easy and practical one.
Following a study by Cornell University, poor accounting practices are often to blame for the downfall of many restaurant establishments.
Using the right accounting software and tools has helped restaurant owners successfully manage their financial management processes, track expenses, and monitor cash flow effectively.
According to a recent report by Statista, 82% of small businesses that use accounting software see a reduction in manual data entry errors, leading to increased accuracy and efficiency in financial reporting.
Being a restaurant owner, finding the right accounting software that suits your business needs is usually a very challenging task.
But to assist with making the right decisions for your business, we have compiled a list of the top 5 accounting software and tools specifically meant for restaurant businesses.
Top 5 Accounting Software & Tools for Restaurant Businesses
Below is the list of the most efficient top 5 ranked accounting software that every restaurant business owner can happily settle for:
1. QuickBooks Online
QuickBooks Online is a popular choice among restaurant owners for its user-friendly interface and robust features. With QuickBooks Online, you can easily track sales, expenses, and inventory, generate financial reports, and manage payroll seamlessly.
Pricing plans usually start at $25 per month, making it an affordable option for small to medium-sized restaurants. The software’s user reviews has it rated 4.5/5 stars on Capterra.
Also Read: The Impact of Tax Evasion and Tax Avoidance in Nigeria’s Economy
2. Toast
Toast is a cloud-based POS system that also offers accounting and financial management features tailored for restaurants.
In addition to processing payments and managing orders, Toast helps with tracking sales data, analysing menu performance, and monitoring inventory levels.
Pricing plans is customisable based on the size and needs of your restaurant, with basic options starting at $79 per month. User reviews rate the tool at 9/10 on Trustpilot.
3. FreshBooks
FreshBooks is a versatile accounting software solution that caters to a variety of industries, including restaurants. While using the software, you can create professional invoices, track expenses, and manage client payments all in one place.
The user-friendly interface and integrations with popular payment gateways make FreshBooks a convenient choice for restaurant owners.
Pricing plans start at $15 every month with user reviews leaving the software with a 4.7/5 star rating on Software Advice.
4. Xero
Xero is also a cloud-based accounting software that has a range of necessary features for restaurant businesses, such as budgeting tools, expense tracking, and financial reporting.
With Xero, you can automate bank reconciliations, streamline payroll processes, and collaborate with your accountant easily.
Pricing plans start at $20 per month, making it a cost-effective option for many restaurant owners. The software is highly recommended by 95% of users on G2.
5. Sage Intacct
This is a comprehensive financial management solution designed for larger restaurant chains and franchises. With features such as accounts payable and receivable, budgeting, forecasting, and advanced financial reporting.
Sage Intacct offers scalability and customization options to meet the specific needs of complex restaurant businesses.
Pricing for Sage Intacct usually varies based on the size and requirements of your organisation, with customized packages available upon request. User reviews have it rated 4.3/5 stars on TrustRadius.
How to Choose the Right Accounting Software for Your Restaurant Business
When choosing the right accounting software for your restaurant business, there are several key factors to ponder upon to ensure you select the best option suited to your needs.
First of all, look for software that offers features essential to the food service industry, such as inventory management, revenue tracking, and integrations with point-of-sale systems for seamless card transactions.
Furthermore, consider the efficiency of the software to support the growth of your restaurant business, as well as its ease of use and compatibility with your already existing systems.
Evaluate the software’s reporting capabilities, data security measures, and customer support services to ensure a smooth implementation and usage experience.
To make even better-informed decisions, gather feedback from other restaurant owners and industry experts.
You can also request demos or free trials from software providers. Using the information gathered, you can compare pricing plans to find a solution that fits your budget and requirements.
Also Read: How to Know If a Company is in a Deep Financial Distress
Frequently Asked Questions About Accounting Software
Q: What are the key features to look for in restaurant accounting software?
A: When choosing restaurant accounting software, look for features like inventory management, integrations with point-of-sale systems, financial reporting capabilities, and multi-location support to better optimize your financial operations effectively.
Q: How can restaurant accounting software help me manage my expenses better?
A: Restaurant accounting software can help you track and categorize expenses, monitor cash flow, identify cost-saving opportunities, and generate detailed reports. These detailed reports can help you analyze spending patterns. In addition to that it can help you make informed decisions to optimize profitability.
Q: Is it essential for restaurant businesses to have cloud-based accounting software?
A: Cloud-based accounting software offers accessibility, real-time data insights, automatic updates, and data security benefits. Furthermore, this can greatly benefit restaurant businesses, especially those with multiple locations or remote management needs. It allows for flexibility and efficiency in financial management.
Q: How can restaurant accounting software help with tax compliance and payroll management?
A: Restaurant accounting software can automate tax calculations, facilitate tax reporting, and ensure compliance with tax regulations. It can also simplify payroll processing by tracking employee hours, generating pay stubs, and handling tax withholdings accurately.
Q: Can restaurant accounting software help to forecast and plan for financial growth?
A: Yes, restaurant accounting software can provide advanced financial forecasting tools, budgeting features, and performance analysis capabilities. Oftentimes, this tool can help you plan for growth, set financial goals, and make strategic decisions to drive success and profitability in your restaurant business.
Final Thoughts
In conclusion, choosing the right accounting software and tools can greatly benefit your restaurant business.
It does this by improving efficiency, accuracy, and overall financial management.
Exploring these top 5 accounting software options is highly recommended to find the best fit for your restaurant’s needs.
By experimenting with the right tools, you can make your business financial processes stress-free. In addition, you can also monitor performance effectively, and take the best steps to drive success in your restaurant business.
