Running a successful restaurant is rewarding, but it involves a lot of hard work. You’re not only living your dream of serving up delicious food to the masses – you’re also thinking about your operations, profitability, accounting – maybe you’re even considering expanding your concept across state lines or the world. That’s where our national restaurant group comes in.
You need specialists who can provide services no matter where you’re established or where your next project is taking you. Our restaurant CPAs understand your changing business environment and can tackle the unique issues you face in the restaurant industry while also providing valuable information, insights, and tips that speak specifically to your needs as a restaurant owner.
Tax Reform + New Revenue Recognition Guidance for Restaurants
It’s a big year of changes for restaurants. Several high-profile issues are directly impacting your industry: tax reform and the new revenue recognition standard. Both will affect your operations and require you to take another look at your tax planning strategies as well as your accounting and preparation of financial statements.
Our new e-Book hits all the highlights and gives you quick access to the most important information, so you don’t have to sift through 1,000 pages of tax law and FASB guidance. This easy to understand breakdown will help make sure you’re in compliance and taking advantage of tax-saving opportunities under tax reform for 2018 and prepare you to implement the new revenue recognition guidance for fiscal 2019.
Our restaurant specialists have worked with all segments and sizes of restaurants, including franchisors, franchisees, breweries, and independent restaurant groups that have locations throughout the Southwest.
Our professionals are also affiliated with and actively involved in leading industry organizations including the National Restaurant Association (NRA), the Colorado Restaurant Associate (CRA) and, in our home state of Arizona, the Arizona Restaurant Association (ARA). So, you have support not only through Henry+Horne’s resources but also those of the ARA, the NRA, and the CRA.
Restaurant CPA Services
From tax consulting and compliance to accounting and assurance services, our professionals can help you increase profits and efficiency while taking advantage of smart tax planning opportunities, making sure you’re in compliance with the new tax law and more. Maybe you’re looking to implement best practices or revamp your internal controls to minimize your fraud risk or optimize profitability. Our team specializes in a number of services that can lighten your load, so you can focus on what’s really important – running your restaurant.
Whether you’re looking to obtain equity and/or debt financing, sell your business or provide transparency to your stakeholders, an independent audit, review or compilation helps bring credibility to your financial statements and business to aid in the decision-making process of internal and external users. Knowing which is right for your restaurant and how to prepare for it will make the process smoother.
- Top 10 restaurant audit preparation tips
- First time audit expectations, preparation and planning
- Understanding audit risk assessment procedures
- Audit, review or compilation: what’s the difference?
Restaurant Accounting Hot Topics
In today’s business climate, nothing stays the same. This is why it’s important to not only focus on your restaurant operations but also be in tune with the changing regulatory environment and accounting updates affecting your bottom line, such as the new revenue recognition standard, the new lease standard and more.
- Are you violating wage and hour laws?
- New overtime threshold proposed by Department of Labor
- New revenue recognition standard, time to get ready
- New lease standard: 5 things restaurant owners MUST know now
- New revenue recognition standard: franchisors impact
- Accounting for lease incentives and tenant allowances
- Accounting for gift cards
To remain competitive, you must look for ways to become more efficient and effective whether through technology enhancements, outsourcing certain processes or requiring assistance on complex subject matters (e.g., revenue recognition). When the time comes to make these changes, it’s important to know the cost-benefit of each option and how those changes will impact you going forward.
- 3 Steps to a more efficient period close
- Bookkeeping services: when to hire a bookkeeper
- The importance of understanding your cash flow
- We’ve outgrown our accounting software! Now what?
- Best practices with account reconciliations
In every business’s lifecycle, whether you’re choosing the optimum structure upon start-up; determining the best mechanism to transition your business to the next generation or a group of employees; or restructuring to optimize after-tax proceeds on an exit, there are opportunities to consult with advisors who have helped numerous clients negotiate these tricky “life events.” Often, this is a one-time occurrence, so it’s important that you have the right advisors and knowledge to make the right decisions.
- Preparing to sell your restaurant – Financial due diligence
- Tax considerations when selling your restaurant
- Selling your business? Here’s what to expect
- 6 Steps to know when you want to sell your business
- Succession planning v exit planning: what’s the difference?
- How to market your business for a potential sale
- Is it time to update your buy/sell agreement?
Part of the restaurant business involves the real estate business as your concept continues to expand into new locations through construction or takeover of existing spaces. The opportunity to maximize your tax savings through cost segregation puts more cash in your pocket now using faster depreciable lives allowed by the IRS.
Depending on the number of eligible participants, your plan will need a financial statement audit to meet the requirements of the Department of Labor and IRS when filing your Form 5500. There are many complexities when it comes to administering employee benefit plans to be aware of in your fiduciary role to maintain the plan’s tax-deferred status and avoid penalties.
- Annual 401(k) compliance reminders
- Top 5 common 401(k) administration errors by restaurants
- Fiduciary review of investments
- Safe harbor 401(k) plans – the basics
The saying goes that in this world nothing can be said to be certain, except death and taxes, which is when estate planning comes into play. Knowing the legal protections that exist and tax strategies to benefit your heirs are key to estate planning.
- What happens if my estate and gift tax exclusion reverts?
- Can you defer the payment of estate tax?
- Paul Allen’s death and the estate settlement process
Restaurants often enter the world of franchising for good reason as you have a quality brand that can be easily replicated through proper training and putting proper standards in place. Keeping up to date on the issues facing franchisors today and best practices to foster a mutually respective franchise relationship can lead to a successful franchise business.
- Top 5 issues facing franchisors today
- New revenue recognition standard: franchisors impact
- Financial statement requirements for franchisors
Restaurant Fraud Prevention, Detection and Monitoring
Many companies are surprised when a significant fraud scheme is uncovered. Being knowledgeable of the causes of fraud and how to set up a strong internal control environment to prevent, detect and monitor it will help you minimize the risk.
- The Fraud Triangle, still as relevant as ever
- Controls and programs to minimize fraud
- Effectiveness of fraud hotlines
- Suspect fraud? Planning for the worst
There are more opportunities arising for international expansion, especially in Europe and the Middle East. Before taking the leap, it’s important to understand how operating in a foreign country can be different from the USA and the tax implications you may face based on the legal arrangement and structure put into place to manage this business line.
Restaurants experience their fair share of litigation issues and knowing how to respond is key to how the situation will be resolved. Whether you are looking to sell, offer equity to employees or attract new investors, obtaining a valuation of your restaurant will provide an integrated picture of your company’s value in the marketplace.
- Governing agreements and holding company valuation
- Subsequent events in the world of business valuation
Understanding the varying taxations by each state on revenues, profits or sales tax can be overwhelming, but it’s an important aspect of compliance when expanding outside your home state. Nexus issues and online sales to different states continue to be complex issues with new regulations being introduced.
- Multi-state taxation + online sales tax
- South Dakota v Wayfair: landmark sales tax decision
- California implements Wayfair sales tax threshold
With the recent changes in the tax law, understanding and interpreting the impact on your business is no easy task. Even without tax reform, laws continuously change and knowing how to operate your business under current law will impact such decisions as whether to build, remodel or open/close stores.
- Section 163(j): trap for the unwary!
- Final Section 199A regulations released
- Tax reform: small business deduction regulations are here
- Classifying workers: employee or contractor?
- Bonus depreciation and tax reform – 100% is the new 50%
There are many cases where tip programs have gotten the company in trouble for having the wrong employees (managerial) involved, taking control of the program when it should not (tip pooling) or not educating its employees on proper tip reporting. Taking the time to understand your tip program and IRS expectations of you as the employer will help alleviate possible lawsuits and penalties.
Our national restaurant accounting team has been helping clients across the country like you for more than 60 years combined. Questions about our restaurant accounting services or about finding the correct restaurant accounting firm for your business? Based on your needs, let us help you get in touch with the right professional. Fill out the form to the left to contact Brian or Bradley.