No matter what we think, minimum wage is rising. The important thing for us to do is to make sure we can use this change to the benefit of our business in comparison with the competition.
The IRS is looking into the reported tip percentage and if it is too low may penalize the business for underreporting.
Consider using section 105 of the IRS code and the Health Reimbursement Account,. We can design a plan to give you what your employees really need, and probably with less cost.
Keep track of credit card and cash sales: This will help you when you want to check if credit card deposits have gone through and strengthening custody of cash. Also will help in bank reconciliations.
When purchasing items at general stores, it is especially important for you to separate personal and business. IRS knows that personal expenses may be mixed into purchases at general stores and will likely check the receipts when you get audited.
The more you want to categorize, the more involved accounting will be. The key to deciding how you want these to be handled is what you want to see to make sound judgments for your business.
There are several ways to take inventory in a food service operation. You do not always need to take complete inventory for each item to come up with a close-enough inventory so that you can rely on financial statements.
Restaurant food purchases typically are paid at the beginning of the next month, accounting for purchases at the month when they are delivered will give you more accurate accounting reports.
It can be done in a simple way or in a more involved way. The more involved it is, the more accurate the financials can be. But also it means higher accounting costs.
Cash basis is accounting for all things when you receive payment or when you pay for expenses. Accrual method takes into account of sale or expenses when it is incurred.