Q: Does the U.S. Department of Labor (DOL) have the authority to question my employees? A: The DOL can investigate your company for alleged violations of the Fair Labor Standards Act (FLSA). The DOL’s Wage and Hour Division (WHD) recently investigated one of our restaurant clients over back wages employees … More
Accounting For Your Money
“Units of Property” method could prevent problems with IRS
Q: What are the new rules in regard to building write-offs and repairs? A: The IRS has been paying close attention lately to an allegedly abusive practice in which restaurant owners treat some costs for building purchases and improvements as repair expenses in their tax returns, effectively writing off … More
Accounting For Your Money
How to cure the pain of plate costing
QUESTION: I know that plate costing is important, but it seems almost impossible. How can I do a better job of keeping track of it? ANSWER: It all starts with finding the right software. Unfortunately, not all plate-costing programs are created equally. Let’s say that cash flow is … More
Accounting For Your Money
Hiring a Tech-Savvy Student Intern
QUESTION: I’m a small independent operator with limited resources, but I’d like to be able to take better advantage of new technologies to improve my restaurant business. How can I do this affordably? ANSWER: I’ve learned over the years that many pizzeria operators are simply too busy to … More
Accounting For Your Money
Is your data secure in the “Cloud”?
QUESTION: How can I make sure that my restaurant’s data is truly secure in the “cloud”? ANSWER: If your accountant has offered to provide a service that will store your restaurant accounting data in the “cloud,” there are four security questions you should ask: What type of protection does … More
Accounting For Your Money
Don’t throw away those credit card receipts
QUESTION: How long must I keep credit card receipts? ANSWER: I recently discussed this subject with the director of the IRS Self-Employed Division. I had been involved in an IRS field audit with a restaurant operator who had failed to keep all credit card receipts related to net sales … More
Accounting For Your Money
Beware of hidden fees in bundled POS deals
QUESTION: Do you have any words of wisdom for pizzeria operators who are looking to purchasing a new POS system? ANSWER: For starters, read the fine print before finalizing any deal. Most POS companies are reputable and honest, but a few will surprise you with hidden fees. I … More
Accounting For Your Money
Donating used items to charity
Question: We’d like to do some general house cleaning around the pizzeria. Can we get a tax break for donating used equipment and other items to charity? Answer: If the pizzeria operates as a Sole Proprietorship, LLC, Partnership or S Corporation, the amount of the contribution deduction for which you’d … More
Accounting For Your Money
Tax law changes could help pizzerias
QUESTION: I hear some changes to tax laws may be in the works. What’s the latest? ANSWER: The Senate Finance Committee recently approved the Expiring Provisions Improvement Reform and Efficiency Act (EXPIRE), and it includes three key provisions for restaurant owners. First, the bill, which had bipartisan support, provides for … More
Accounting For Your Money
Bridging the Communication Gap
QUESTION: It seems like my chef and my accountant are never on the same page. How can I solve that problem? ANSWER: I am convinced that chefs speak a language that’s all their own. The same can be said about accountants, who have their own way of expressing results of … More
Accounting For Your Money
How the IRS’ new tipping rule will impact your pizza business.
As reported in the March issue of PMQ, the Internal Revenue Service (IRS) now classifies an automatic gratuity—that is, any required tip added by restaurant management to customers’ bills—as a service charge instead of a tip, and these charges will constitute taxable wages for payroll tax purposes. So what does … More
Accounting For Your Money
Calculating Your True Pie Costs
QUESTION: My food costs are out of control. What can I do to rein them in? ANSWER: Controlling your food costs starts with better record-keeping and knowing exactly how much you're paying for – and exactly how much you're earning from – each and every item on your menu. To get started, … More