The Best Accounting Software 2024: Xero for Restaurants
Drumroll, please…
The best accounting software for restaurants…
In 2024…
Is…
…NOT QuickBooks!
That’s right! If you’re currently using QuickBooks Online for your restaurant accounting software, you’re likely missing out on valuable insights.
For a number of reasons, Xero has surpassed QuickBooks as the superior option in terms of functionality for restaurants, bars, and breweries.
We’ve written extensively about Xero vs. QuickBooks previously, but here’s why Xero for restaurants is our top choice in 2024.
What is the best restaurant accounting software in 2024?
Xero for restaurants is the top choice in 2024 for a number of reasons, including a really intuitive interface, game-changing bank reconciliations, and unlimited users.
But the main reason? Their reporting functionality is unmatched.
This is important for restaurants for a few reasons.
As a restaurant owner, you need accounting software that can run reports based on your specific 13-month calendar. (Learn more about the 13-month calendar here.)
Your accounting software needs to have the capability to run weekly reports.
With Xero, if your business week finishes on a Tuesday, you can customize the reports to run from Wednesday to Tuesday.
Here is an example of a rolling 13-period report from Xero.
For those of you who are looking to position your restaurant for sale, this is the annualized view of the business you’ll need to show:
Additionally, with Xero, you have the flexibility to organize your costs in the right way. You can easily organize your costs by prime costs (food and beverage, labor costs), and also by controllable and uncontrollable costs.
Finally, with Xero’s superior reporting, you can run reports for multiple gross profits and ratio formulas.
For example, when looking at food costs, you can run simple reports to see food costs as a percentage of food sales. Or, beverage costs as a percentage of beverage sales.
This is super simple to do with Xero, and not so much with QBO. In fact, if you are even able to do it at all in QBO, it will cost you a lot of money.
Whereas with Xero, it only costs you a flat $30 / month.
This reason alone should be enough to convince you to make the switch to Xero as a restaurant owner!
If it doesn’t, don’t worry. We have a few more to talk about.
Here are a few more reasons why Xero is the best accounting software for restaurants:
Xero loves the cloud
Being cloud-friendly is a big deal these days. Xero is designed to work effortlessly with basic browser functionality, making it a breeze to use multiple monitors and side-by-side comparisons. Trust us; you’ll love the difference it makes!
Xero’s bank reconciliation is a game-changer
Xero’s artificial intelligence (AI) is smart. Like, really smart. It does a fantastic job matching bank feeds to vendor names and general ledger accounts. Plus, it’s got an easy-to-read, side-by-side comparison format that streamlines your restaurant’s financial processes. Say goodbye to tedious reconciliations!
Xero gets you, the business owner
Xero was designed with you, the business owner in mind, rather than your accountant. Although, we love it too! Xero’s organization and structure make it a cinch for any restaurant business to use. Easy-to-navigate categories like Business, Accounting, and Contacts, and a handy top-down menu, meaning you’ll know your way around the software in just a few tries.
Unlimited users? Yes, please!
With Xero, your monthly subscription includes unlimited users. No more extra fees for added team members! Better segregation of duties and accountability? That’s a win-win in our book.
Aside from these reasons, Xero also outshines QuickBooks in areas like batch transaction fixes and tracking categories. But we wrote a whole blog post on Xero vs. QuickBooks if you’d like to dive into more details.
How easy is it for restaurant owners to transition to Xero from QuickBooks?
The good news is that once you’ve decided to switch to Xero, the rest of the work is pretty easy.
Especially if you hire us to help.
Here at U-Nique Accounting, we help restaurants modernize their entire accounting process, from accounting software to POS integration, in just a matter of weeks.
No, really!
It’s what our team of accountants are here for.
To set you up on Xero, we’ll grab your QuickBooks Online login and a few extra details, and usually, we can handle the rest from there.
In the meantime, we’ll take a look over your previous tax returns and bookkeeping to make sure you’re taking advantage of every lucrative restaurant tax break that many accountants typically miss.
So, what are you waiting for? It’s time to make the switch from QuickBooks to Xero and treat your restaurant to a better accounting experience.
Just book a quick 15-minute call, and we’ll answer any questions you have.
Until next time!
