Restaurant Accounting Software

So we have to write about a lot of different accounting items here at ClockWork, but I have to admit that today I’m pretty excited about the topic. I have two great passions in life (1) Accounting and (2) eating. So you can imagine my excitement when I received the topic of accounting software for restaurants.

The Basics

Restaurants need to keep track of information just like any other business. Some specific accounting software tailored for restaurants can be very helpful. However, keep in mind that a basic QuickBooks package or even Excel could be used to track the information. Buying a tailored package hopefully means that you’ll be able to keep track of information in a more effective and efficient manner.

Some Things to Look for in Restaurant Accounting Software

Compatibility with your point of sale (POS) system. You’ve invested all this time and money in getting POS software and hardware for your restaurant. Now it’s time to make sure it all pays off by keeping all of this information in your accounting records.

There may be some custom POS systems out there that come completely integrated with accounting software. However, it is more likely that you’ll have to buy the two systems separate (a major bummer in our opinion). Make sure to ask when you are buying your software if it is compatible with your specific POS system.

Recommendations/Options:

Below are some of the different restaurant accounting software packages available. Note that you could probably separate these into a couple different categories. For example some of the software listed below is restaurant management software. This type of restaurant software is geared toward providing you information that will make your company more profitable (like menu costing and gross margins). It is less focused on the necessary reporting and tax functions. If you are looking for software for reporting and tax functions then stick with basic accounting software packages like QuickBooks and Peachtree.

I hate to always recommend big names and would love to talk about some other great POS systems if readers have other suggestions, but as it is I will have to recommend the classics: Microsoft and QuickBooks. Microsoft has a system that will automatically enter all transactions into either a Microsoft accounting package or QuickBooks. This covers a large majority of medium sized restaurants and will be a good option for a lot of people.

Note that one major weakness of the QuickBooks POS system that many restaurant owners are mentioning is that it is too complicated for the restaurant staff to operate. This may have been updated in more recent editions, but we feel it is something worth mentioning.

Other Restaurant Software Options

Providing accounting software for restaurants is a relatively small industry. We have tried doing our homework and have found a few places that claim to offer this software:

TRRAP.Com Restaurant Software : This may have been one of the first places you came to visit when looking for software for your restaurant. In this case, we have to agree with the name (it is a trap). The webpage looks like it was made in the late 1990’s and though the prices offered are very good, this looks like nothing more than some pre-designed excel spreadsheets. If you’re looking for some spreadsheets, this may not be a bad option for you, but chances are you could develop some spreadsheets that would fit your company better. Not our first choice. P.S. We did some more digging around and it turns out the webpage hasn’t been updated since 2006. We’re not sure they are still in business (steer clear).

Restaurant Operators Complete Guide to QuickBooks by John Nessel – We realize that this isn’t actually software, but it is a book that tells you how to use QuickBooks for your restaurant accounting. We believe that for a lot of people, this will be your best option. Not only are there tons of people who know how to use QuickBooks, but they have a special version within premier that is designed for retailers and should work nicely for restaurants. Did we mention John Nessel has been working in the restaurant industry for 25 years? The guy knows what he is doing.

EZ Chef Software – This is a great tool for managing a restaurant. However we are concerned about its ability to provide the necessary accounting reports that investors and bankers may want. This is another glorified excel spreadsheet program that tracks your menu costing, inventory, and will help you perform in-house profitability analysis. However, we’re not sure if a banker would look at these reports and feel confident in giving you a loan. Great restaurant management software, but may be a little weak on the accounting side.

Food Service Solutions – These guys seem to be saying all of the right things. They claim to be able to install a system that will allow you to track inventory and other costs and help prevent shrinkage. They don’t mention prices on their website, probably because they will custom design the software depending on the size of your company. This may mean that they are a little pricier. One thing that turned us off a little was the extremely long sales page; you know the spammy looking ones that keep telling you how good their product is and then try and make the sale at the bottom of the page?

Compeat Restaurant Software – This is a complete end-to-end restaurant software package. It has your accounting technology and your POS technology all wrapped up in one bundle. The idea to create a comprehensive restaurant software package is unique. You can read my review by clicking on the link above.

See another restaurant accounting software package that should be on this list? Please let us know by commenting below. In addition, if there was some piece of information that you felt was left out that would have helped please let us know by posting in the comment box.