New VIE guidance impacting private companies

Over the past seven years, the guidance for variable interest entities (VIEs) has evolved due to collaboration between the Financial Accounting Standards Board (FASB) and the Private Company Council (PCC). The list below depicts the evolution through FASB ASU No. 2014-07 and most recently FASB ASU No. 2018-17. Prior to FASB ASU No. 2014-07 Required …

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Work Opportunity Tax Credit updates

On December 19th, the Senate passed the “Disaster Act”. It was previously passed by the House on December 17th, and the President is expected to sign it soon. Part of the Disaster Act extends the Work Opportunity Tax Credit (“WOTC”) through 2020. The WOTC allows employers who hire employees of certain targeted groups to potentially …

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Top 5 restaurant audit preparation tips and how they will improve your audit

With technology today, it’s simple enough to find out what items you might need to prepare for an audit of your restaurant. But it’s not as common to find ways that you can improve your preparation tools. In this blog, we’ll look at five preparation tips/tools, and ways that enhancing these areas can improve your …

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Year-end tax planning for your restaurant – Part 1

Year 2020 is fast approaching (and still no flying cars), but there’s still time to get some year-end tax planning done. In this two-part blog series, we’re going to discuss a variety of tax planning strategies. The first part of which needs to be implemented prior to the end of the year, followed by a …

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The future of restaurants and money-saving tips you need to consider

I just returned from one of the top two or three restaurant conferences in the industry. There were over 3,000 attendees and it seemed like a lot of deals were being made. We had a booth at the conference, which is a first for our restaurant niche, and we got a chance to meet some …

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Tax treatment of gift cards

As the holiday season approaches, gifts will be bought with increasing frequency. Have you ever considered how gift cards that go unredeemed are viewed by Federal and State taxing authorities? What are the revenue recognition rules and the escheatment standards that companies need to be aware of? Revenue Recognition The timing of recording taxable income …

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New tip pooling rules proposed by Department of Labor

Operators of full-service restaurants should take note of recent developments from the United States Department of Labor, regarding regulations governing the use of tip-pooling arrangements. There is one caveat to be aware of, which is that the non-tipped duties must be performed in conjunction with tipped duties, or within a reasonable amount of time before …

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Gift card accounting for the holidays

The third quarter of the year is winding down and with the fourth quarter upon us, restaurants will start looking forward to the holiday season and the increased customer traffic, revenues and cashflows. Part of these increased cash flows are the result of the sale of gift cards during the holiday season. Two types of …

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Get your restaurant business ready for sale

You built a successful restaurant operation and are now thinking about selling. What do you need to think about to make your business ready to sell? And importantly, maximize the proceeds you will receive. Any sophisticated buyer will go through a due diligence process. What this means will be somewhat different depending on what legal …

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Should I be outsourcing my restaurant accounting services?

Restaurant owners wear a lot of different hats in the course of running a business. Unfortunately, accounting-related duties can easily fall by the wayside when you are being pulled in so many different directions. It often comes up at inopportune times, like when you need to better understand cash flows or get ready for tax …

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