Author Archives: Anna Baumgardner

Services Charges vs Tips – Must Know Implications

Animation of a personified service charge chasing a man

Services Charges vs Tips Article by: Raffi Yousefian, CPA, Principal at RY CPAs On January 1, 2014, the IRS enforced Revenue Ruling 2012-18 which defined tips vs service charges (aka Autograt) and clarified the tax implications of each. Almost 5 years later, it seems there is still some confusion among restaurant owners, employees, and customers. Service

How Distributions and Profit & Loss Allocations are Taxed

By Greta Diercks, CPA | 08/24/2022 Welcome to the second portion of restaurant capital and ownership series: How Distributions and Profit and Loss Allocations are Taxed! In Part I, Raising and Distributing Capital for Restaurant Startups, we discussed what capital is, how to read an operating agreement, and we walked through an example showing how

The 7 Impacts and Benefits of AP Automation with XtraCHEF by Toast

Processing invoices, developing pricing strategy, managing inventory costs, and keeping the right inventory levels are all challenging functions of managing a restaurant. You can quickly and easily do all of these things by using xtraCHEF, integrated into your management processes and accounting systems! Check out “7 Impacts and Benefits of Accounts Payable Automation with xtraCHEF

Key Due Dates & Deadlines

June 15, 2022 2022 Q2 Federal Estimated Income Taxes due for Corporations 2022 Q2 Federal Estimated income Taxes due for Individuals 2022 Q2 State Estimated Income Taxes due for Corporations 2022 Q2 State Estimated Income Taxes due for Individuals September 15, 2022 Extended S-Corporation Income Taxes (Federal Form 1120S) Extended Partnership Income Taxes (Federal Form

Raising and Distributing Capital for Restaurant Startups

raising and distributing capital

By Chris Loudy, CPA This is part 1 of a 2-article series. Please check back to read our article on taxation of distributions and allocation of profits and losses. You are a restaurateur with a great idea for a restaurant and feel it is a cannot-miss investment opportunity. There are several different options to raise

How to Reconcile Food Delivery Service Fees and Taxes

food delivery service

Published 05/20/2022 | Guest article originally published 04/25/2022. Written in partnership with: Restaurants are doing more carry-out and delivery than ever, and maximizing revenue per square foot by using two, three, or more different delivery services to reach the most hungry customers as possible. Unfortunately, each additional delivery service means more taxes, fees, and commissions

How to Avoid the Most Common Restaurant Accounting Errors


Published 05/20/2022 | Guest article originally published 04/25/2022. Written in partnership with: At the very minimum, restaurant operators need a weekly overview of cash flow and labor costs to stay current on how the restaurant is doing, and prevent financial surprises. If the bookkeeping for a restaurant is treated the same as any other business,

The 2022 Guide to Restaurant Taxes: Tips and Advice

Restaurant accounting and tax specialists have navigated many operators through millions of dollars from COVID Relief, and helped many restaurants become cash-flow-positive even throughout the pandemic. When tax time comes around, working with a seasoned accounting team like the Fork CPAs helps keep the momentum, and ensures the filing process is as pain-free as possible.

Accounting & Tax Guide for Service Charges, Tips, & Delivery Fees

Accounting and Tax Guide for Service Charges, Tips, and Delivery Fees By Marisa Parker, CPA | Published on 08/02/2021 Through months of unimaginable hardships and uncertainty, restaurants around the country have been rethinking their operations. Uncertainty as to if the restaurant will be open the next day, or if any customers will show up in the