401k audit reminders and common errors for restaurants to avoid

In order to stay competitive in the restaurant industry, many companies offer 401(k)s to their employees as an incentive. Due to the nature of the industry, there are some important factors to consider in order to avoid errors or issues with the Department of Labor (DOL). Below are necessary considerations to help restaurants administer more …

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New restaurant businesses and the importance of operating agreements

When starting or expanding a restaurant in the form of a partnership, one of the most important first steps to take is to consult with a business attorney to draft operating agreements everyone involved in the venture agrees to. Unfortunately, this very important step is often overlooked by new business owners, as they are busy …

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Preparing to sell your restaurant – Financial due diligence

Sometimes, before your advisor will list your restaurant for sale, they require a financial due diligence in the manner of a quality of earnings (“QofE”) report. You might be saying, what is a QofE report? A QofE report analyzes the earnings power of a business to determine how sustainable and accurate the business’ earnings are. …

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How does the Families First Coronavirus Emergency Response Act affect your restaurant business?

By now you’ve heard the Families First Coronavirus Emergency Response Act mandates sick time pay, and you’re probably wondering how that affects restaurant owners. You’ve been dealt multiple blows in the coronavirus pandemic. First, your business was affected by social distancing. Then state and local governments started asking (and in some places mandating) you stop …

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When you need a financial audit and what to expect

There are many reasons why business owners might consider having a financial audit performed. Financial audits enhance the perceived quality of the information communicated in your financial statements, which enables you to use your financial statements as a tool for running your business and to provide reliable financial information to outside parties. Although financial audits …

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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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New lease standard: 5 things restaurant owners MUST know now

We all know lease accounting is changing for private companies starting in fiscal 2020. With leases being such a big component of the restaurant business, the new lease standard will have a significant accounting impact on restaurants. Gone are the days of having off balance sheet impact. Now, those operating leases will be grossing up …

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New revenue recognition standard: franchisors impact

Revenue recognition for private company franchisors will be changing drastically for fiscal 2019 and will require either a retrospective or modified retrospective application to prior years presented in your audited financial statements for FDD purposes. The main impact is affecting the recognition of the initial franchise fees and area development fees. Another impact is the …

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