Restaurant365 vs. QuickBooks Online: Which Accounting Software is Right for Your Restaurant?

Busy running a restaurant? The last thing you need is complicated accounting software. 

When choosing accounting software for your restaurant, the decision often comes down to the specific needs of your operation. Restaurant365 and QuickBooks Online are two popular options, but they serve different purposes.

This article compares the two, based on the unique requirements of restaurants.

Restaurant365: A Back-Office Beast for Restaurants

This software is specifically designed for restaurants, offering advanced tools that handle everything from inventory management to vendor integration. If you're looking for a system that consolidates all of your restaurant's operational data, Restaurant365 might be the right choice.

Features of Restaurant365

Integrated Vendors and Inventory Management

One of the biggest advantages of R365 is its ability to handle inventory, menus, and food costs all in one place. One standout feature is the ability to track theoretical food costs—offering insights that QuickBooks does not offer. This level of detail helps restaurants optimize their spending and control costs more effectively.

POS Integration for Real-Time Financials

Restaurant365 integrates with your POS system, allowing you to pull labor punches and other daily sales data directly into the software. This feature gives restaurant owners a near real-time P&L, with insights available on a weekly or even daily basis. 

Your POS being integrated gets you labor punches, so that creates your labor accrual, meaning the system is constantly updating your labor costs in the background.

Automation of Accounts Payable

Restaurant365 includes optical character recognition (OCR) capabilities, which automate the reading and recording of accounts payable. This feature reduces manual entry, especially for non-integrated vendors, by capturing data at the item level.

Strengths of Restaurant365

Comprehensive Reporting

The customized reports allow you to track sales and prime costs by location, and split expenses between locations using allocation templates. Restaurant365 offers advanced reporting options, allowing users to generate reports on sales and prime costs by location. 

Expense Allocation

You can preset rules for how to allocate shared expenses, such as a credit card purchase for multiple locations. Restaurant365 allows you to allocate these costs automatically, based on set rules like sales percentages or GL accounts.

Theoretical Food Costs

Restaurant365 provides insights into food costs at the item level, tying expenses directly to your recipes and menu items. This tool is especially useful for restaurants with complex operations and multiple locations.

Challenges of Restaurant365

Complex Implementation

While Restaurant365 offers powerful features, its implementation can be time-consuming and requires dedicated staff to manage daily tasks such as closing daily sales summaries (DSS) and checking inventory. Successful adoption of the platform requires a significant commitment from the restaurant’s team.

Overkill for Small Restaurants

If you’re running a single restaurant, especially one with lower volume or simpler financials, you may find Restaurant365 to be more than you need.

The system is built for more complex operations, and the time investment might not be worth it unless you're dealing with multiple locations or high-volume sales.

QuickBooks Online: The Go-To for Simpler Operations

QuickBooks Online is a household name in accounting software, and for good reason. It’s easy to use, affordable, and works well for a variety of small businesses, including restaurants.

 While it may not offer the restaurant-specific features that Restaurant365 does, it remains a strong contender for those who don’t need all the bells and whistles.

Features of QuickBooks Online

Simplicity and Flexibility

QuickBooks Online is intuitive and easy to navigate, allowing restaurant owners to handle basic accounting tasks like invoicing, payroll, and financial reporting without requiring advanced accounting knowledge.

It’s also affordable, especially when compared to the more advanced features of Restaurant365.

POS and Vendor Integration (With Limitations)

While it offers some integration with POS systems, the functionality is limited compared to Restaurant365. 

Users can still connect certain POS platforms and third-party apps to import sales data, but the process isn’t as seamless,  it won’t create a real-time P&L or automatically accrue labor costs.

Cost-Effective for Smaller Operations

If you're running a single restaurant and don’t need in-depth tracking of theoretical food costs or integrated labor management, QuickBooks Online might be all you need.

QuickBooks Online offers a range of pricing tiers, with its Advanced package providing additional features like custom reporting and payroll integration. For restaurants with basic accounting needs, QuickBooks is a cost-effective solution that covers the essentials without the complexity of restaurant-specific platforms.

Strengths of QuickBooks Online

Affordable and Easy to Use

QuickBooks Online is an ideal choice for small to mid-sized restaurants that need a reliable, easy-to-use accounting system without the high price tag. It can handle payroll, tax management, and basic financial tracking efficiently.

Third-Party Tools for Additional Features

While it lacks built-in restaurant-specific tools, QuickBooks users can connect third-party apps like Dext or bill.com to enhance functionality. These integrations can help with bill management and categorization, giving owners a bit more control over their finances without overwhelming complexity.

Challenges of QuickBooks Online

Limited Restaurant-Specific Features

QuickBooks Online doesn’t offer built-in tools for managing inventory, theoretical food costs, or labor accruals. This means restaurant owners may need to supplement their QuickBooks system with additional software, which can increase costs and complexity over time.

Not Built for Growth

For restaurants that are looking to expand or optimize their operations, QuickBooks may not be able to keep up with your growing needs.

Once you start adding third-party tools like MarginEdge or ExtraChef, you might be spending as much as you would on Restaurant365 anyway.

Which Should You Choose?

The decision between Restaurant365 and QuickBooks Online ultimately comes down to the size and complexity of your restaurant.

Both platforms have their pros and cons, but the best option will depend on your specific needs.

Restaurant365 is best for restaurants needing a robust, all-in-one system to manage multiple locations, inventory, and labor costs. It integrates with POS systems and automates tasks, providing a real-time view of operations. This software suits larger, high-volume businesses that can handle the time and cost of implementation.

QuickBooks Online is better for smaller restaurants or single locations with simpler accounting needs. It handles the basics like invoicing, payroll, and financial tracking without the complexity of Restaurant365. If you don’t need advanced features like food cost tracking or labor automation, QuickBooks offers a more affordable and easy-to-use option. However, it may not meet the needs of restaurants planning to grow or require deep financial analysis.

If you care about your numbers and running an efficient system, Restaurant365 might make sense for you, but for those who don’t require such advanced tools, QuickBooks is perfectly fine.

Need Extra Support? Outsourced Accounting Might Be the Answer

Switching to new accounting software? Easier said than done. With everything else on your plate, who has time to figure it all out?

Even the best software won’t solve every problem. That’s where outsourced accounting services come in—handling the details, providing financial reports, and offering expert advice so you can focus on running your restaurant (and maybe relax a little).

Wondering what it costs? Check out our article, How Much Do Outsourced Accounting Services Cost? and see how they can take the stress off your plate.