Review of EZChef Software

Nov 112010

This product is brought to you by RRG (The Restaurant Resource Group). These are the same people that provide the excellent QuickBooks Restaurant Accounting Software guide. The idea behind this restaurant software is to save managers time when performing their accounting and managerial tasks. The truth is that most restaurant managers are starting to see the benefits from tracking inventory, costs, and sales very closely. If information about these items is organized, managers can use it to make smarter decisions for their restaurants.

EZChef helps with inventory management. You can enter your inventory into the software and it will help you keep track of everything. This program is based off of Microsoft Excel. Some accountants frown upon the use of spreadsheets because of their lack of controls. However, this program has some serious functionality that would be helpful for restaurant managers. Here’s a quick look at an inventory worksheet.

As a restaurant manager, it can be a nightmare to track the costs of all of the different items on the menu (especially without a good restaurant accounting software package). Some managers don’t do a good job of this and they end up paying for it later. In order to turn a profit with your restaurant you need to accurately monitor the cost of your ingredients. The EZChef software has a pretty good tool for doing this.

There are two ways to keep track of your menu costs with this software. (1) You create recipes and sub recipes. A sub recipe is exactly what it sounds like. It isn’t a complete recipe, but it is a mixture of a few ingredients that are used in many of your different menu items. You then manually enter the price in for the ingredients that make up the sub recipes. Now anytime you enter in a new recipe (using the sub recipes) into EZChef, the software will automatically show you the cost of that recipe or menu item. If the price of an ingredient changes, simply manually update the ingredient prices and the costs of each of your menu items will also be updated.

A Look at the EZ Chef Pricing Spreadsheet

The (2) second method is quite intriguing to say the least. If your restaurant’s ingredients are changing on a daily basis, it can be a huge hassle to keep changing the price of ingredients. Some managers have decided that they simply won’t update the prices because it is too time consuming. These managers are probably promoting menu items don’t have as big of a gross margin as they think. In our opinion, the single best feature of EZChef software is that it can automatically update the prices of your ingredients as often as you want. Once the prices are updated on the ingredients, the software automatically updates the cost of each of your items on the menu. A restaurant manager armed with this information will know which menu items to push. This could lead to drastic gains for some restaurants.

This automatic updater only works with certain food distributors: Sysco, Ben E. Keith, U.S. Foodservice, and Gordon Food Service. The software can interact with these distributors. When they update their prices, all you have to do is click a button and your ingredient prices and menu costs will also be updated. Pretty nifty in our opinion. Note that there are many different types of restaurant software.

The price of this software is $189 for the standard version. The standard version is the one that you have to update manually. The standard version will probably be a good choice for companies whose ingredients don’t change prices that often. The automatic update version costs $249. This might be a good investment for those restaurant managers who want to add another tool to their arsenal.

The EZChef software isn’t a complete restaurant accounting software package. However, it is a great tool for managing inventory and pricing. The automatic update feature may just make it one of the best restaurant management software packages available.

Advantages and Disadvantages (In review)

Advantages

  • Great for managing inventory
  • Great for keeping track of menu costs
  • Automatic update feature provides incredible information

Disadvantages

  • Excel Based (may have control weaknesses)
  • Not necessarily a restaurant accounting software package. In our opinion this tool does not replace the need for accounting software (for reporting and tax purposes). This is a tool that can help you make smarter decisions.

Would I use it in my restaurant? If I already had an accounting software package, then yes. This tool could give you information that would make your restaurant much more profitable. It would be nice to see this software interact smoothly with other popular accounting software packages. They already wrote the book on QuickBooks for restaurants so why not?

Overview of Restaurant Operators Complete Guide to QuickBooks

Nov 102010

The first thing you should notice about this post is that it is means to be an “overview” and not a “review.” It is really hard to give reviews on a manual for restaurant accounting software. Some people may have the stamina to read through pages of jargon and instructions, but I do not (unless of course I’m using the manual to actually perform the tasks that the manual is meant for). For those of you who have experience using this manual as a guide, please chime in at the bottom with your opinions.

Restaurant Operators Complete Guide to Quickbooks

Restaurant Operators Complete Guide to Quickbooks

This book is produced by RRGConsulting. The RRG stands for Restaurant Resource Group. This company has been around since 1999. It is presided over by John Nessel who has been in the cooking industry for quite some time. Needless to say this book is provided by someone with experience.

The price of the book is $79 if you want the electronic copy. You’ll have to shell out more if you want the hardback. Note that if you haven’t bought the accounting software from QuickBooks you’ll still need to do that as well. The price of QuickBooks really depends on the size of your company. Most restaurants will probably be spending around $300 for it.

Contents: Here’s a quick link to look at the Table of Contents of the Book: http://rrgconsulting.com/toc.htm
Probably the best thing about his package is that it comes with a file that will help you set up your QuickBooks software automatically. This file is specifically designed for restaurants. The whole idea behind this book and behind this file is to get your restaurant accounting software working as soon as possible. Those of you who have experience trying to set up an accounting system can attest to the fact that it isn’t easy to set one up without experience and help.

The bottom line is that many restaurant owners and entrepreneurs don’t know the first thing about accounting, business, and the different types of restaurant software. They are experts when it comes to setting up a good environment and providing good food, but they have no idea how to manage business operations. This book comes with advice on how to install a restaurant accounting system. It also comes with advice on how to manage a restaurant. For example it has some key operating ratios that are useful for restaurant managers. The bottom line is that accounting can save your restaurant money and this book can help restaurant owners set up one of the most popular accounting systems in the world. You can read more about this book at RRG: http://rrgconsulting.com/page/RRG/PROD/OP-MAN/QB-GUIDE


Review of TRRAP.com Restaurant Accounting Software

Nov 092010

Honestly, I wasn’t sure if I should even provide a review of this software package after I visited their site TRRAP.com. The site has not been updated for a long time (since 2006 according to the tracker on the bottom). In addition when you land on the site a pop-up presents itself and says “We are updating our site, please email any broken links.” I instantly wondered how long this pop-up has been there. After some more digging around, I found that the software hasn’t been updated since 2006.

The name TRRAP comes from their restaurant accounting software which is called Cash TRRAP. They claim that they have been in the accounting business since 1979. The owner of the software appears to be some guy named “Mike.” The software headquarters appear to be in Iowa.

Let’s get down to some of the restaurant accounting packages that are offered by TRRAP. They offer a basic profit/loss software, a restaurant startup software package, a catering package, a point of sale (POS) package, and a total package that includes everything.

This profit and loss software is based out of Microsoft Excel. This usually means three things: (1) The software is less expensive. (2) The software is easy to use (assuming you know how to use Excel). And (3) the software is probably susceptible to human errors. Excel is a great program, but it has some flaws that could be a problem for restaurant owners and managers. First of all, Excel spreadsheets don’t have very good controls. This means that anyone can edit them and change what you have done. When you purchase accounting software you will find that it comes with a lot of controls to ensure that you don’t make mistakes. If you make mistakes on your accounting you will regret it.

The startup package is an interesting idea. It includes a restaurant business plan which is something that most people who want to start up a restaurant often overlook. It also has some cash flow statements to help new restaurants. It also comes with some policy manuals for employees and for the business in general.

TRRAP also offers a POS system that is designed for Windows. This system has most of the features that general POS systems come with. Note that there are many types of restaurant software available.

The total package comes with everything included: the startup kit, the accounting software, and the POS system. It also comes with a special package for catering. The price of this package will vary depending on the needs of your restaurant. However, most of the time the price offered by TRRAP is well under the market average.

Recommendation: Steer clear. TRRAP may have once been a good restaurant accounting software package (and it may be a good package again someday) but for now it looks downright outdated. If you are really looking to save some money and are willing to take the risk, then TRRAP might be for you.

If you have any experience with this software please leave your comments below. Your shared experiences can help other restaurant managers who are in the position that you were once in.

Three Must Have Elements: Restaurant Accounting Software

Aug 122010

Getting your restaurant to work well and getting it established in the community is a tough job to do especially when you are still a beginner. Some beginners may not be able to get things right until they know about these three elements of a successful restaurant.

Most restaurant owners know how to run a restaurant. They make a restaurant not just to gain money but to bring good, quality food and service to the public. It is a very simple goal to think about and knowing the basics will make you reach your goal. There are three elements that an owner should and must always take into mind when starting a restaurant and these are food, people, and systems.

A restaurant is all about food. Good, quality food must always be served to the customers as it is the soul of the business. Quality is all about how fresh the ingredients are and how they are prepared. Food preparation is one of the biggest investments owners make for the restaurant as it is the main money maker for the business. Food presentation is also one of many things to consider in order to attract more and more customers to dine.

Another thing to consider in terms of establishing a successful restaurant business is the people whom you will be working with and these are the customers and employees of your fine restaurant. Though food would be the main focus of the business, you should make it a top priority that the employees are happy and satisfied. You should also make sure that payroll is accurate, well managed, and that they are well compensated for their time. An unhappy employee can make a customer feel that they are unhappy. So make sure your employees are well satisfied so that they can perform their best. In making customers happy, make sure that they get the service good enough to keep them satisfied while not being pampered to a point that they are or will be abusing the services.

One of the most important things to consider having in a restaurant is a good system of management and accounting. This involves various hardware and software tools that should be installed in the establishment. What makes a restaurant work properly is good management. Many restaurant owners implement good quality restaurant accounting software to do most of the job for them in terms of data processing and analysis. Inventory is also managed through these hardware and software tools used by the management. Finding good accounting services can make your life much easier.

In getting any type of business to become successful, there are always key elements to know about and work on. With these three elements, restaurant managers who will just be opening their first restaurant can be successful. Remember that running a restaurant can be daunting at first (there are a lot of different types of restaurant software and there is a lot to learn). Remember to keep moving ahead when things get difficult.

Restaurant Accounting Software

Apr 302010

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.

Forty-Four Different Types of Accounting Software

Mar 012010

Most people believe that accounting software is not a very broad topic. However, it turns out that there are about as many different accounting packages as there are people in a small country. Below is a list of all the

different types we could identify. We’ll provide a short summary of each here, but in the future we plan to go more in depth into each category. In fact look for a post on each software category in the future.

Business Accounting Software – This is a pretty broad category within the accounting softwares arena. It basically consists of all of the accounting packages that a business might use. Some popular choices include QuickBooks, Sage, Peachtree, etc. Note that a lot of larger businesses will develop special software just for their business.

General Ledger Accounting Software – Just like it sounds, this software is specifically designed to interact with the general ledger. Most software out there has this integrated within the package, but there are still some places where you can buy just general ledger software.

Manufacturing Accounting Software – Turns out that manufacturers want their own type of accounting software. We’ll dive more into this topic at a later time, but manufacturers need something that will not only keep them in compliance with GAAP, but will also keep track of vital manufacturing information that can give them an edge on their competitors.

Inventory Control Software – This in all honesty is some of the coolest accounting software available. The normal software tracks the information provided by bar codes and scanners. The high-end packages are really awesome; the software actually interacts with RFID (Radio-Frequency Identification) tags to keep track of where your inventory is at all times. Very nice, and very expensive.

Property Software – Like all the categories we are discussing, this one has a lot of different functions. The basic function of this type of software is to be able to keep track of a Landlord’s many properties and tenants while still being able to generate reports that satisfy banks and investors.

Restaurant Accounting Software – Another fun area of accounting. There is actually a whole field of accounting software dedicated to restaurants. Who would have thought? More on this coming in the future.

MRP  Software – Stands for material requirements planning software.  This software is used to account for the type, quantity, and quality of material that will be necessary for the manufacturing process.

Small Business Inventory Software – This is just like the inventory software mentioned above except it is specifically designed for smaller businesses. This usually means that the package is not as detailed, and in most cases not as expensive.

Payroll Accounting Software – This software is specifically designed to keep track of the payroll department of a business. It tracks payroll information, generates checks, and generates payroll reports for management.

Insurance Accounting Software – If you’re not part of the insurance industry you may believe that we’re making up this type of accounting software. Although it doesn’t seem like the Insurance industry would need its own accounting software, there are companies that specialize in making accounting software for these companies.

Trust Accounting Software – Trust accounting is a difficult area, burdened with all sorts of laws and policies. Having specific software for this industry helps, but don’t expect it to solve all your problems.

Warehouse Inventory Software – Similar to inventory software, but designed for larger warehouses.

Asset Software – This type of software can be as basic as you want or as high tech. Some people keep track of their assets with excel, while others have some complicated programs that interact with RFID tags to keep track of depreciation, life, location, and value of each asset (pretty cool software).

Audit Management Software – Just like it sounds, this software industry provides a tool for auditors to manage their audits. Most of the larger audit firms (The Big 4) have their own proprietary software, but some of the smaller firms may be interested in some over-the-counter packages.

Retail Inventory Software – Similar to normal inventory software, but for retailers. On a big scale think Wal-Mart’s vendor managed inventory system that basically forces all of their suppliers to keep their inventory stocked. On a smaller scale, think of a Mom-and-Pop shop that needs some inventory tracking software that will alert them when they need to reorder.

Construction Accounting Software – QuickBooks Premier Edition actually has a specific industry section for construction; that shows you how large of an accounting software industry this is.

Online Accounting Software – This type of software, known as software as a service (SAAS) has become very popular in recent years. Basically the idea is that you don’t need to store your information on local computers. Instead the information is stored on secure servers. This can be beneficial because you can access key information from anywhere in the world, even when you’re on vacation.

Personal Accounting Software – Excel is probably the most used personal accounting software. There are some other popular services out there such as QuickBooks. There is also a wealth of free resources available on the Internet.

Accounts Payable Software – Not a lot to add about this type of software. It simply tracks a company’s accounts payable. Most accounting software comes with this included, but you some still sell it as a separate module.
Accounts Receivable Software – Tracks your accounts receivable. This software can help you reduce your days receivables outstanding.

ERP Accounting Software – ERP (Enterprise Resource Planning) software is a growing trend amongst today’s businesses. The idea is that you have one software package to manage all parts of the business. As you can imagine, these are often custom built because each business is different. However there are a few basic packages that will work if you’ll mold them to your business model.

Fund Accounting Software – Fund accounting is most often used by governments, non-profits, and churches. This is a growing area of accounting software with a few well-established providers, but room for others to move in.

Tax Accounting Software – Almost everyone knows about this type of accounting software. Turbo Tax and Tax Act are some of the more popular services out there. More and more this type of software is moving to the Internet. FreeTaxUSA is a popular online tax service, and the federal filing is free.

Cost Accounting Software – There are some over-the-counter packages that deal with managerial accounting. However, there are no rules when it comes to cost accounting so many companies develop their own accounting packages and consider these packages a confidential, competitive advantage.

Linux Accounting Software – Specifically designed accounting software for Linux.

Project Accounting Software – This is usually used for managing large projects. You would be amazed at how difficult it can be to manage a large project without some software.

School Accounting Software – What type of accounting a school does really depends on its affiliation with the government. If it is a public school then it will likely want to use some form of governmental accounting software. If the school is a private, not-for-profit, then it will probably still want to use fund accounting. If the school is a for-profit entity then it will probably just want to use basic accounting software.

Trucking Accounting Software – Yes even truckers need some form of accounting software. Basically this keeps track of where everyone is going.

Farm Accounting Software – Anytime there is something to keep track of you will see some form of accounting software popping up. Farms are no different; if you think about it they have plenty to manage.

Medical Accounting Software – This is a rapidly developing area. In the olden days, doctors were ridiculed for their lack of business prowess; nowadays they have software built especially for their practices. Some software packages in the medical industry are tracking patient information. Connecting this information with doctors around the world is the future of medical accounting.

Loan Accounting Software – This software handles loan billing, loan servicing, and loan amortization processes. It’s a smaller industry, but it exists.

POS Accounting Software – Point of Sale accounting software comes in very handy for those organizations that sell multiple products. Basically you integrate your point of sale system with your accounting software. This means that for each sale, the accounting information is automatically updated.

Hotel Accounting Software – Basically an accounting package designed for hotels. Surprisingly enough this has been around since the 1980’s.

Partnership Accounting Software – Partnerships have different rules and regulations than corporations. It only makes sense that they would have some slightly different accounting packages as well.
Time Accounting Software – We’re not talking about your average, run of the mill planners here. These are packages designed to track what hundreds of employees throughout the day. This comes in very handy when trying to eliminate employee waste.

Invoice Accounting Software – Software that processes invoices and automatically enters it into the accounting system.

Mortgage Accounting Software – Basically some software that mortgage companies use to track all of their customers payment and billing information.

Stock Accounting Software – Basically a glorified excel spreadsheet. This software tracks whatever stock information you ask it to.

Daycare Accounting Software – Who would have thought that daycares needed their own special accounting software? You won’t see QuickBooks having a special category for these guys, but there is some software out there that keeps track of important financial daycare information and interfaces with QuickBooks.

Municipal Accounting Software – Similar to governmental accounting software. Governments don’t account for their money in the same way that businesses do; so they need their own type of software. Government accounting has a lot of tricky rules that we don’t want to get into in this article, but we will talk more on this in the future.

Opensource Accounting Software – This type of software doesn’t entail a specific type of software, but more about how the software is created. Opensource refers to the fact that the code is available to manipulate the software and usually for free. This can be very helpful if your company is looking to develop custom software, but needs a base to begin.

Database Accounting Software – Most accounting softwares act as a type of database; however when people are looking for this type of software, we assume they are looking for something with a little more storage power than your average software. Database accounting software can be queried and manipulated for data mining purposes.

Rental Accounting Software – If your organization is more focused on renting than selling, then you may want to look for accounting software in this category.

Billing Accounting Software – Most accounting packages come with some form of billing function. However some software packages create the bills and automatically update your accounting ledgers.

Budgeting Software – For individuals budgeting software may just be excel or a personal QuickBooks. However, large companies that rely on budgeting need complex budgeting software. The government is probably the largest entity that uses budgeting regularly. Yes we know it is hard to believe, but the government’s budgeting techniques are rigorous and highly sophisticated. They more than anyone need and use budgeting software.

As most people know, the accounting software does not solve all of your accounting problems. It is simply a tool, but you still need to understand accounting in general, as well as any industry-specific accounting or legal issues. For example if you know nothing about trust accounting and you buy trust accounting software, don’t expect that you will automatically be in compliance with all of the industry standards.

Think this list isn’t comprehensive of all the accounting software out there? Please leave us a message below suggesting a category we missed. Think the list doesn’t provide enough information? Look for an individual, in-depth post for each of these categories in the future.

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