Best Inventory Management Software for Restaurants
Why We Recommend MarginEdge Again and Again
There’s no shortage of restaurant inventory software out there. A quick Google search will show you dozens of options promising to streamline operations, reduce food waste, and improve your margins.
But as restaurant accountants who work in the weeds of real-world restaurant data every single day, we’re not impressed by hype – we’re impressed by software that actually works.
So when clients ask us, “What’s the best inventory management software for restaurants?” our answer is almost always the same:
Not because we’re paid to say that (we’re not). But because we’ve seen what happens when restaurant operators use MarginEdge well – and it’s a game changer.
Let’s dive into what it does and why we recommend it so often.
What Is MarginEdge Used For?
In case you didn’t know, MarginEdge is a restaurant management software built by former operators. It pulls together POS integration, real-time invoice data, labor and shift data, and inventory tracking to give you a real-time view of your food and labor costs, before the end of the month hits.
At least, that’s what it says on their website.
But does it actually do all that? And is it accountant-approved?
Yes. And here’s why.
MarginEdge: Invoice Processing That Actually Works
If there’s one place restaurant owners burn hours of admin time, it’s invoices. MarginEdge fixes that.
Instead of entering invoices by hand, your team can snap a photo from the mobile app, forward them via email, or have them sent directly from vendors. MarginEdge then extracts all the line-item details within 24 – 48 hours, accurately.
You don’t need a back-office staffer stuck at a desk for hours retyping line items.
Even better: you can approve and pay invoices directly in MarginEdge. The software handles ACHs, credit cards, or even check payments on your behalf. No more cutting checks in-house.
From there, it syncs directly into Xero (our favorite bookkeeping software by far).
Honestly?
This one feature alone can save your team hours every week and dramatically reduce input errors.
MarginEdge: Real-Time Cost Management
The magic of MarginEdge is how invoice data flows straight into your cost analysis.
As invoices get processed, your cost of goods sold, labor cost, and waste reports update in real time. You don’t have to wait until the end of the month to realize something went sideways.
That means you (or your ops manager) can:
- View daily P&Ls
- Spot price increases on ingredients
- Adjust recipes before they blow up your food cost
- Respond to overspending while it’s still fixable
We’ve seen firsthand how much power that puts in a restaurant owner’s hands. This feature alone can be the difference between a profitable month and a panic moment.
MarginEdge: Inventory Without the Headaches
Inventory is usually the most painful part of managing a restaurant. MarginEdge makes it bearable, dare we say, easy.
Here’s how:
- Prices update automatically based on invoice data
- Counts can be done digitally or on paper
- You always know what’s in stock, what’s running low, and what needs to be ordered
- It tracks food usage and shrinkage so you can spot waste early
Because the system is tied to both your POS and recipe tools, it automatically factors sales and recipe changes into your stock levels.
Less guessing. More clarity.
MarginEdge: Recipe and Menu Costing in Real Time
Need to raise menu prices?
Thinking of subbing out a pricey ingredient?
MarginEdge’s recipe tool shows your updated plate costs instantly, based on current invoice data. So if salmon went up this week, you’ll know what it’s doing to your margins today.
For multi-location restaurants, you can edit recipes in one place and have them updated systemwide. No more emailing spreadsheets or printing new versions of the recipe binder.
This is one of the biggest reasons we love MarginEdge: it gives you full control over your margins, in real time.
Seamless Integration With Xero
If you’ve worked with us before, you already know our love for Xero. It’s cloud-based, flexible, and, most importantly, plays very nicely with MarginEdge.
MarginEdge pushes invoice data and journal entries (like sales data and inventory adjustments) directly into Xero. Bills show up automatically in Accounts Payable, ready for payment.
No double entry. No missing data. Just a smooth financial workflow that actually makes sense.
Are There Other Restaurant Inventory Management Tools?
Of course. And some of them are good too.
MarketMan and Craftable both offer solid inventory tools with good POS integrations. xtraCHEF by Toast works especially well if you’re already using Toast POS. These can be great depending on your size, team, and existing systems.
But for our money (and yours), MarginEdge is hands-down the most complete, intuitive, and accounting-friendly solution out there. It has a suite of integrations with POS data, labor data and accounting systems. Oh, and did we mention that it comes with unlimited users and a robust list of different user rights so that you can invite and have your operations team do most of the work for you.
MarginEdge was built by restaurant people, for restaurant people. And it shows.
Want Help Getting Started?
If you’re trying to choose the right inventory tool or just need help connecting your accounting to what’s happening in the kitchen, we’re here to help.
We’ve helped dozens of restaurants set up MarginEdge with Xero, clean up their financials, and start making better decisions based on real numbers. If that sounds like something your restaurant needs, we’d love to chat.
Book a call with our team using the calendar below, and we’ll walk you through it.
And while you’re at it, check out our popular post: Xero vs. QuickBooks for Restaurants, which breaks down why we recommend Xero 10 times out of 10.
Until next time!
By MATT CIANCIARULO
