Q: Do you have any advice about dealing with automatic gratuities and applicable taxes?   A: I recently worked with a restaurant that underwent a tax audit covering the previous three years. The operator uses a point-of-sale (POS) system to account for his daily operations and for monthly sales tax … More

Q: I’m worried that important correspondence from the IRS may not be making it to my desk. What should I do? A: Underreporting your income will get you into serious trouble, so once the IRS contacts you about a suspected violation, you need to act quickly. I know of a … More

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

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

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

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

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

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

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