Restaurant Accounting Software: Features and Solutions

Restaurant businesses have a complex business model that includes various processes. That’s especially true for large food service chains. In order to streamline business processes, eateries use various software products. From online food ordering platforms to restaurant data analytics solutions, there are innovative tools that can help boost a food service business. Restaurant accounting software is among the most important solutions. It helps eateries with regulatory compliance, the creation of financial reports, payrolls, and tracking important KPIs. In this post, we’ll share more about the key features of restaurant accounting software and the most popular solutions food service businesses can use. If you operate a business in this field, check out our article on restaurant marketing and tips on how to achieve restaurant success.

Key takeaway: Food service businesses need reliable bookkeeping and accounting software solutions for tax compliance and sales tracking. Restaurant365 and QuickBooks are among the most popular accounting software.

What Is Restaurant Accounting Software

These are specialized financial management solutions that help food service businesses meet their bookkeeping and accounting needs. Thanks to restaurant accounting software, eateries can automate various financial tasks and streamline income tracking, payroll processing, and cost management. Virtually all businesses in the food and beverage industry use some type of accounting software. Some of them choose general accounting software that can be used by companies in most niche markets. However, some business owners in the restaurant industry choose specialized restaurant accounting software. That’s because these solutions are custom-tailored to the needs of the food service sector.

Benefits of Using Restaurant Accounting Software

Thanks to these tools, eateries can ensure compliance with labor regulations and tax laws. This reason alone makes them a must for businesses. Nevertheless, there are many additional benefits of using modern restaurant accounting software. Here are the main ones.

1. Reducing human errors in manual data entry and helps prevent restaurant fraud;
2. Creation of financial reports and other statements that improve the decision-making process;
3. Better control of food costs and other expenses to help boost profitability;
4. Faster and more efficient bookkeeping, payroll, and accounting procedures;
5. Integration with other restaurant technology to ensure data consolidation integrity;
6. Features for budgeting and forecasting that are tailored to the restaurant sector.

Features of Restaurant Accounting Software

Modern accounting solutions have hundreds of solutions related to payroll processing, bookkeeping, calculating costs, analytics, and more. Although some features are optional and rarely used, other key tools are extensively used by food service businesses that use specialized restaurant accounting software. Here are some of the main features of these solutions.

1. Sales and transaction tracking. As accounting software can be integrated with POS solutions, it automatically records any sales. Furthermore, restaurant accounting software has the functionality to calculate restaurant tipping and make tip management easier.
2. Payroll processing. Managing employee wages, tax withholdings, tips, and overtime costs is a key feature of restaurant accounting software. This data is also used to calculate labor costs and determine overstaffing or understaffing.
3. Tax compliance. Filing sales tax and income tax is much easier thanks to modern accounting products. Specialized solutions for food service businesses also help with regulatory compliance.
4. Analytics. In order to improve restaurant customer acquisition, investor relations, and other key areas of business, food service businesses need powerful reporting and analytics capabilities. Restaurant accounting software has various preset reports and capabilities to generate custom reports.
5. Inventory tracking. Most types of accounting software for the food service industry also possess powerful inventory management capabilities. They include supplier management, automated stock counting, and integration of recipes and ingredient costs.

Most Popular Restaurant Accounting Software Solutions

There are dozens of different accounting solutions that can be used by eateries. Let’s examine some of the common ones.

1. QuickBooks. It’s one of the most popular accounting software solutions. QuickBooks offers integration with various restaurant POS systems like Toast and Square. It’s suitable for small to mid-sized eateries.
2. Restaurant365. As it’s built specifically for the food service sector, this restaurant accounting software has unique features and industry-focused functionalities. Restaurant365 is suitable for medium to large restaurants and multi-location chains.
3. Xero. It’s best for small restaurants, cafes, and mobile food vendors. This cloud-based solution is simple and offers the main functionalities needed by businesses.
4. TouchBistro Accounting. As TouchBistro POS is one of the popular systems used by eateries, many companies in the food service sector might choose this solution. 
5. Other broad and specialized accounting solutions like MarketMan, Zoho Books, and Wave Accounting are also available for small and large restaurant businesses.

Frequently Asked Questions about Restaurant Accounting Software

If you’re looking for resources regarding back-of-house and FOH operations in restaurants or wish to know how to increase the wholesale sales of your distribution business, BlueCart is the place for you. There are multiple useful guides and articles on our website. Below are the answers to commonly asked questions regarding bookkeeping and accounting software for restaurants.

What Type of Accounting Do Restaurants Use?

Most bars and food service businesses deal with a lot of cash on a daily basis. That’s why the most common accounting method for these companies is cash accounting. Also known as cash basis, this accounting method allows restaurants to record income and expenses when cash is received or paid. Accrual accounting is another common method. This method calculates expenses when they are incurred. Although it’s more accurate in the long term, it is more complex and offers fewer immediate cash flow insights. Accrual accounting is used primarily by chains and large businesses in the restaurant industry that benefit from structured financial and accounting oversight.

What Other Software Do Food Service Businesses Use?

Bar and food inventory management software, employee scheduling solutions, and table management platforms are just a few examples of software solutions used by eateries. Modern restaurant technology trends allow small and large food service businesses to streamline their processes and improve profit margins through better efficiency. Thanks to artificial intelligence features, restaurant managers can reduce their labor costs and optimize various fields of their food service business. Third-party solutions like DoorDash and Uber Eats have also become a must for many restaurants and other food service companies.

Is Accounting the Same as Bookkeeping?

Although the two terms are often used interchangeably, there are differences between bookkeeping and accounting. Generally speaking, the former lays the foundation for the latter. Bookkeeping is the process of recording sales and payments in a systematic way. The primary focus of bookkeeping in a business is on transactions and the management of documents. On the other hand, the main goals of accounting are regulatory and analytical interpretations of financial data. The accounting process uses data collected from bookkeeping and uses it to file tax returns, prepare financial statements, or ensure regulatory compliance. Restaurant accounting software usually has both bookkeeping and accounting tools.

BlueCart: SaaS Software for Restaurants and Suppliers

Throughout the years, thousands of specialized and broadline distributors have benefited from BlueCart’s solutions to optimize their wholesale distribution business. In addition to being beneficial for suppliers, our wholesale ordering software also has multiple features for wholesale buyers like restaurants, hotels, and stores. Thanks to BlueCart, eateries can streamline vendor relationship management. Furthermore, our solution also has multiple tools to help with kitchen and bar inventory management. Sign up for BlueCart as a buyer today or schedule a demo if you wish to see our software’s features for distributors.