When it comes to operating a restaurant business, there are a lot of factors to consider to keep the business running smoothly.
Managing your restaurant accounts can be one of the hardest parts of running a restaurant as well as the deciding factor between success and failure. From creating cash-flow projections to applying for loans, managing the financial aspect of your restaurant can sometimes feel like a juggling act.
When you are starting a new business or prepping your taxes for the coming year, hiring an accounting service may be on your mind. Even the most business-savvy restaurateur could require an accountant to help handle the ins and outs of his restaurant’s finances.
If you are skeptical of the importance of accounting for your restaurant, this overview will help you understand its benefits for your business to thrive. Read along and find out how!
Ensures Compliance with State and Federal Directives
With constant law changes regarding sick leave, termination of employment, new hire reporting, health insurance, and more, it is nearly impossible to keep up with the federal and state laws for restaurants. ATS Accounting provides back office support in addition to offering payroll services. The company provides accounting and human resources management that offers clients a full suite of services that often intersect.
A full-service accounting firm understands the state rules and regulations regarding payroll services, tax-breaks, insurance, etc. They are also aware of how the latest amendments affect restaurant costs. Assessing for fines and fees due to recent law amendments is one less worry that restaurants need stress about when they outsource their accounting to a restaurant accounting firm.
Creates Cash Flow Projections
A cash-flow projection is a formula that estimates your budgeted revenue after expenses (total revenue – total expenses = projected cash-flow). For new restaurant owners trying to master accounting, creating cash-flow projections can be challenging. Still, this is a necessary part of financial planning and will aid you to keep your restaurant on a budget.
Helps in Processing Payroll Transactions
Your employees are the engines of your restaurant; therefore, it's imperative that you keep them happy and paid. When it comes to payroll services in Edmonton, there's more to consider than just wages and time tracking. You should also ponder over deductions, benefits, overtime payments, payroll taxes, and more.
Applicable deductions might include income tax, your share of your employees' contribution to the Canada Pension Plan, and employment insurance. To accurately calculate each employee's income tax deductions, require all workers to provide their Social Insurance Numbers (SIN), and fill out a separate Personal Tax Credits Return Form, or TD1.
Though paying employees may seem like a simple task, but it is more complicated than you might think. Some of the details you'll need to iron out include:
It can be a lot to keep up with, which is why many restaurant owners outsource these tasks to an accounting firm that offers restaurant bookkeeping services, including payroll services management.
Maintains Accuracy in Holding Accounting Records
It is critical to maintaining up-to-date financial records. Not only it helps monitor how much revenue is flowing in and out, but it also helps your restaurant survive should you ever face a CRA audit. If you aren’t experienced with managing the logs, consider seeking help from an accounting firm. Additionally, most accounting firms also keep track of the inventory, manage payroll services, and run sales reports.
Provides Sound Advice for Your Business
Many restaurateurs have backgrounds in the food industry but may not have experience in finance. It is wise for such entrepreneurs to outsource their accounting tasks to professionals.
Hiring an accounting service in Edmonton is often about bringing a new perspective, one with years of experience that suggests viable paths to business growth. An accounting service helps you plan your target goals and look out for financial tricks that would reduce your expenses. Your accountant offers insurance advice, find ways to trim costs without lessening quality, help you evaluate menu prices, and even research your business potential for expansion.
As you and your employees work hard in the day-to-day aspects of the business, your restaurant accountant can take a step back and see the forest for the trees.
Gives Tax Advice and Help in Auditing
Many restaurant owners approach an accountant when it's the tax time, and indeed, that's a service your restaurant can consider an accounting service for. Not only your accountant makes sure your restaurant is in compliance with federal and state tax laws but helps you plan throughout the year so that your deductibles go smoothly by the time the tax season approaches.
If a restaurant is audited, whether for taxes or during the bank loan process, restaurant accounting services also assure the auditor that the business’ financial documents are precise and up-to-date.
By understanding what an accounting firm does – and knowing what to look for in a restaurant accountant specifically, you can hire a great fit for your business and set your restaurant up for success!
ATS Accounting has licensed agents who work exclusively with all business owners. Our team of dedicated agents knows the specific risks restaurant owners may face and help ensure your business is protected with the right policies and coverage limits.
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