Author Archives: Raffi Yousefian

The Economics Behind the Soft Serve Craze

soft serve ice cream

Last month, the New York Post published an article highlighting the shift towards serving fancy soft-serve as a cost-cutting dessert option in some of the most acclaimed higher-end restaurants. As restaurant accountants, our eyes glow when we see the terms cost and cutting in the same sentence, especially when ice cream for the people is

DC Small Retailer Tax Credit for Restaurants, Bars, and Nightclubs

DC restaurants, bars, and nightclubs with less than $2.5m in sales can receive a $5k tax credit annually. This is a dollar-for-dollar refundable tax credit, not just a tax deduction. So even if you don’t have an income tax liability due to not being profitable, you can receive $5k from the DC government. After factoring

Financial Document Retention for Restaurants & Bars

The number of documents that restaurants and bars need to handle is overwhelming. You are constantly hammered with invoices, receipts, statements, operating agreements, leases, licenses, liquor board reports, purchase orders, tax returns, K-1s, etc.  Luckily, digitization and cloud migration have alleviated some of this burden. Well, has it? We frequently talk to operators storing the

DC Ballpark Fee for Restaurants

DC already has unfavorable taxes for restaurants – they charge a minimum gross receipts tax, don’t recognize pass-through entities for nonresident partners/shareholders, impose a sales tax on service charges, impose a high-income tax rate, and more. The DC minimum gross receipts tax (franchise tax) is imposed on your gross sales regardless of your profit. The

How to Issue and Account for Employee Advances in Your Bar, Restaurant, or Nightclub

Restaurant employees

As much as we try to avoid them, employee advances are inevitable in restaurants, bars, and nightclubs. An employee advance is an advance towards an employee’s pay deducted from future paychecks. Advances are issued to employees for various reasons, but they’re typically issued because they need to get paid in advance to cover personal expenses.

The NOL and Excess Business Loss Limitations for Restaurants

Gone are the days when you could freely generate a loss for a restaurant using bonus depreciation and then offset your other sources of income using those losses. The losses you can claim from your restaurant or bar against your other sources of taxable income, such as wages or investment income, are now limited. These

Profits Interest: Tax Free Equity in a Restaurant Partnership

If structured effectively, issuing sweat equity can reward and incentivize employees in a restaurant group. However, when the equity in an LLC (taxed as a partnership) is granted, the value of that equity is generally taxed upon vesting, thus subjecting the employees to tax without receiving any cash. The value of the equity is also

Depreciation and Fixed Assets Policy for Restaurants and Bars

If you’re frustrated by a massive depreciation expense throwing off your restaurant’s P&L, this article is for you. CPAs commonly record tax depreciation in their clients’ books so that the tax returns match the financial statements. Tax depreciation is generally higher than book depreciation due to the accelerated depreciation system allowed by the IRS. The

How to Set Up Bar Consumables in MarginEdge

You’ve set up Marginedge and have begun uploading invoices. Maybe you have even set up recipes and are tracking actual vs theoretical usage. In doing these things, you have modernized your bookkeeping and have real-time access to your cost of goods sold (COGS). However, you don’t have confidence in your COGS because each time you

2024 Guide to Filing Restaurant Taxes

Looking for better tax-saving strategies for your restaurant? The 2024 Guide to Filing Restaurant Taxes: Tips and Tricks, hosted by TouchBistro, is here to help! Rather than simply explaining how to organize your tax documents and walking through the basics of how to file taxes for a restaurant, this guide provides a comprehensive roadmap of