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Accounting For Your Money
Double-check your numbers
Question: How do I ensure that my sales figures, according to my point of sale system, make it to the bank? Answer: You need to practice internal control. First, print a daily sales report from the point of sale and from your credit card machine if you have a standalone terminal. Next, create … More
Accounting For Your Money
Hiding from Uncle Sam
QUESTION: I’m a small independent operator with five employees, so why would the IRS seek me out? ANSWER: After attending a recent IRS Nationwide Tax Forum in Dallas last summer, I returned with plenty of reasons the IRS would seek you out. First, the government needs to balance its budget and has fully staffed … More
Accounting For Your Money
Defusing fees
Question: Can I mandate a fee that’s passed on to my customers to account for excessive credit card fees? Answer: In my research, merchants are restricted in charging any additional fees to customers specifically to recoup merchant processing fees charged by bank processors. Simply put, merchants have to bury the fees charged in the … More
Accounting For Your Money
Bank loan assistance and state payroll taxes
QUESTION: How can I obtain a loan to purchase equipment and for costs to be incurred for leasehold improvements at a new location for my restaurant? ANSWER: We have been flooded with these requests lately. First, understand that most lending institutions or bankers do not understand your operations to the degree that you do. … More
Accounting For Your Money
Second opinions and credit card fees
QUESTION: My current accountant doesn’t provide restaurant advice, and I feel like I’m missing out on something. Without hurting his feelings, how can I get a second opinion? ANSWER: If you are at this stage with your current accountant, who may even be a family member, you owe it to your employees, your staff, … More
Accounting For Your Money
Budget basics
You wouldn’t get on a plane if you weren’t comfortable that the pilot budgeted the correct amount of fuel needed for the trip. You wouldn’t enter into a long-term lease in a strip mall without budgeting your restaurant’s cash flow to ensure you pay the lease, since nonpayment may lead you to bankruptcy. You wouldn’t … More
Accounting For Your Money
The credit card game
Regardless of your restaurant’s size, there are many benefits of having the ability to process credit card transactions. By accepting multiple forms of payment, you give your customers options and improve their experiences. You also attract a new group of customers to grow your business. In addition, card processing is an efficient, convenient payment solution … More
Accounting For Your Money
Guided goals
Now that the House of Representatives and the Senate are not skewed by the vision of one dominant party after the elections in November 2010, get ready for changes to tax laws, job growth, and hopefully a renewed focus on small businesses in America—including restaurants! It’s that time of year to reset your … More
Pizza News
Friendly taxes
The recently enacted Small Business Jobs Act of 2010 includes a wide-ranging assortment of tax changes generally affecting businesses—specifically restaurants. Two of the most significant changes allow for faster cost recovery of business property. Here are the details: Enhanced small business expensing (Section 179 expensing): In order to help small businesses quickly recover the cost of … More
Accounting For Your Money
Keeping receipts
Receipts, receipts and more receipts! Which ones do I keep? For how long? Here are the basics and a few scenarios for you to consider: Travel and Entertainment: Amount, time, place, business purpose and business relationship are the five areas in which each expense must be substantiated or kept in order to prove an allowable expense. For travel expenses, track the amount of each separate … More
Accounting For Your Money
On loan
Owning vs. leasing your restaurant equipment is very similar to the purchase vs. lease options for a vehicle. In either case, cash flow and immediate tax deductions are two areas to focus on. However, first and foremost, always negotiate the best purchase price of the equipment before deciding how to pay for it. For any asset purchases, the … More