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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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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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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Risks for restaurants you may not have considered

When most business owners think of potential risks their restaurant could face, I would bet the first thing that comes to mind would be food safety. And rightly so. The health and safety of your customers should be top of mind. All restaurant owners should be aware of the regulations they are subject to, what …

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New lease standard: Anticipating the transition impact

FASB has just given the go-ahead to delay the effective date of the new lease standard for private companies for another year. Now it won’t be applicable until 2021 for calendar year ends. But it is still important to envision what the impact will be to your financial statements. Our earlier blog, “New lease standard: …

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Franchisor financial information disclosures

If you are looking to franchise your restaurant brand or are relatively new to franchising, it is important to understand your requirements for providing financial information within your Franchise Disclosure Document (FDD).  The first requirement relates to financial information of your franchising entity. Item 21 in the FDD requires you to provide copies of your …

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