Category Archives: General

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

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

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

Attractive,Chef,Using,Laptop,At,Restaurant,Kitchen

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,

What should prime cost be in a restaurant?

What should prime cost be in a restaurant? By Marisa Parker, CPA | Published on 10/3/2021 The restaurant industry is known for having very slim profit margins. According to Restaurantowner.com, the pre-tax average net profit for independent fast-casual (quick service) restaurants is 6-7% and 4-5% for full-service restaurants. When working with such small margins, it is

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

How Much Does Restaurant Accounting Cost and Why?

The Cost of Restaurant Accounting How much does restaurant accounting cost? How much should you be paying? The short answer is, it depends. In this article, I will explain the dependencies that significantly influence the cost of accounting for restaurants. Before we dive in, let’s understand the purpose of restaurant accounting and the options that

Growing a Practice and Refining Services with MarginEdge

In partnership with: Check out this article and interview from MarginEdge with our Founder, Raffi Yousefian. This article highlights the benefits and win/win for restaurants and accountants that use software like MarginEdge to streamline their restaurant accounting operations and increase profitability by gaining visibility and oversight on a real-time basis.