Hire an Accounting and Bookkeeping Service Provider for your Restaurant Business

The restaurant business is one with limited profit margins; in the tough financial scenario today, it has become imperative to manage the accounting and bookkeeping of a restaurant business efficiently. The smallest mistake in the financials of a restaurant can force even an expert restaurateur to quit the business. If you check out business brokers in your area, you will come to know that the highest businesses for sale are in the restaurant industry. In such a situation, experts in the field suggest in-house cost-cutting measures like hiring an accounting and bookkeeping service provider for taking care of the books of your restaurant business.

A majority of restaurants fail due to the inadequate financial knowledge of the restaurateurs and due to the fact that many of them deal in cash and in the end lose out on the record keeping for their business. If you do not want your restaurant business to fail, it is of utmost importance that your books of accounts be healthy. While it is true that restaurateurs have very little resources to hire a professional accounting and bookkeeping service provider for their business, the ‘I will manage it myself’ approach can be fatal for the business.

As a restaurant business owner, the following are some points you need to keep in mind when it comes to accounting and bookkeeping for your business:

• Attain basic knowledge
The most visible mistake of the restaurant industry is that the owners have very little knowledge about accounting and bookkeeping. While it is not necessary to know the whole process in depth, restaurateurs should at least be aware of some basics like Profit and Loss Statements, Balance Sheet, Statement of Cash Flows etc. You can leave the rest of the financial details to your accounting and bookkeeping service provider, but these basic statements are a must-know for you as an owner.

• Have a proper accounting system in place
As an owner, you will be unaware of the financials of your restaurant business if you don’t have a well-organized accounting system in place. Softwares like QuickBooks, Great Plains, Peach Tree, MYOB etc. are a great tool for your day to day accounting and bookkeeping. If you can’t find a software that is suitable for your business, you can even get a custom-made one developed for you through an accounting and bookkeeping service provider.

• Have a 4-week accounting period
A 4-week accounting period is recommended for restaurants by accounting and bookkeeping firms, due to the fact that it has many advantages for the business. The numbers compiled for 4 weeks are then comparable for performance and earnings to ,say, the last month or the same week last year. Also, in a system when you pay staff bi-weekly, it may eliminate the need for payroll accrual.

• Record all your business transactions
If you can’t do this yourself, hire an accounting and bookkeeping service provider specializing in restaurants. But recording ALL transactions of your restaurant is a must-do for a successful restaurant. (It is the secret to the success of many restaurant franchises today.) Don’t depend on your bank statement or credit card bills for a list of income and expenses. All transactions must be kept in a record which will be useful at the end of the year.

• Hire a professional accounting and bookkeeping service provider
There are many professional accounting firms which can work as back-office service providers. Many of them even specialize in accounting for the restaurant industry. They charge anywhere between $15-40 an hour and can be an easy alternative to hiring someone in house.

As a restaurant owner, you should take the above-mentioned points into consideration for a healthy business in this time of financial crisis. A professional accounting and bookkeeping service provider will help you to not only ride through the recession, but also ensure the sustenance of your business in the longer run.

Analytix Solutions was One of the Elite Exhibitors at the New England Xpo for Business

Analytix Solutions, a prominent back office service provider for accounting, bookkeeping and part time CFO services in New England, participated in the New England Xpo for Business on May 19th, 2009. The highly anticipated B2B show had over 400 exhibits of innovative products and services which visitors could tap into for information. Visitors thronged the booths with doubts related to small businesses and appreciated the chance to interact with so many business professionals for expert tips.

“We met a lot of visitors at this Xpo, most of whom were small business owners, having queries regarding managing their business finances in the most cost-effective way,” says Satish Patel, President of Analytix Solutions. “Our tips on cutting up to 40% of their accounting and bookkeeping costs attracted a lot of visitors and we are glad of the phenomenal response to our participation.”

About Analytix Solutions

Analytix Solutions is a one-stop back office service provider for Accounting & Bookkeeping and other value-added services like IT, Operations and Marketing to small and mid-sized businesses. Based in Boston, Mass., Analytix’s clients typically range from $100k to $10M in annual revenues. To know more about Analytix Solutions, visit www.analytixsolutions.com.

5 Expectations to Set before Hiring a Bookkeeper for your Business

As a business owner, you might be wondering if you need the services of a bookkeeper for financial accounting of your business. Most business owners think that they will be able to learn any skill that is necessary to run their business better. But is it really that simple to learn to do your own books or does your business need the expertise of a bookkeeper? According to a well-known saying, if you try to be a jack of all trades, you will be master of none. It is hence advisable to hire a bookkeeper to do your business bookkeeping. Look for an experienced firm providing accounting services; they will have experienced bookkeepers for hire. However, there are a set of skills for a bookkeeper that help in the accounting and bookkeeping field and before you hire a bookkeeper, you’ll want to set some expectations to make sure he/she knows what to do. The following are some of them:

1. Your bookkeeper should have a basic understanding of your industry
   An expert bookkeeper with the basic knowledge about your industry will make a huge difference and you will be miles ahead on the learning curve if your bookkeeper already has a basic understanding of your industry. While the basic fundamentals of accounting and bookkeeping are similar, there are some variations according to the industry. Each industry has different terms which can be learnt on the job only. So be sure to look for a bookkeeper who has experience in your industry.
   
   
2. Your bookkeeper should be good a communicator
   Communication will be a critical aspect of getting your accounting and bookkeeping done in a proper way. Your bookkeeper needs to understand your requirements and communicate any doubts or confusions clearly. Good communication skills will allow the bookkeeper to become a useful asset for your business.
   
   
3. He/she should have the ability to integrate modern technology with the basics of accounting and bookkeeping
   The days of doing accounting and bookkeeping with hand are long gone; today all functions of bookkeeping are done with the help of latest computer softwares like Quickbooks, Peachtree, MYOB, Great Plains, other Sage Products and ERP Systems. Ideally, your prospective bookkeeper should know such technological changes or have the ability to learn them.
   
   
4. A strong commitment to your business is a must for your bookkeeper
   While hiring a bookkeeper, it is essential that you find someone who will give his/her complete attention to your business; your business should be on the top of the bookkeeper’s priority list. Your financials will be impeccable only if your bookkeeper is focused on getting things done the right way.
   
   
5. Your bookkeeper should be able to pay attention to details
   An ideal bookkeeper for your business would be one who is detail oriented. Perfection in business financials depends on the fine details of transactions, which the bookkeeper should be able to pay attention to. Such a bookkeeper will enable you to pay complete attention to the core activities of your business without worrying about the financial side of it.
   

It is critical for your business’s profitability that you set these expectations for a bookkeeper before bringing him/her on board. You will know where your business is headed through the financial records the bookkeeper will maintain. If the bookkeeper you hire meets all these expectations, then he/she will be a perfect addition to your business and team.

How to Search for a Reliable Accounting & Bookkeeping Service Firm

Managing your business cost-effectively has become even more important in this recession. In such a situation, hiring an outside accounting firm for faster financial accounting would be a wise solution compared to adding more in-house accounting staff. Searching for an accounting and bookkeeping firm can be a daunting task at best. Given below are five tips which will help you in your search for an expert accounting services firm.

1. Talk to Family, Friends and Professionals
   
   Interacting with trusted people and getting their opinion is one of the most suitable approaches to search for an expert accounting and bookkeeping firm. You can ask them about which accounting firm they use, how it works for them and how they went about finding the right professional to hire. This is a great way to make sure you get the right information from the right people. It is important to separate a firm which provides good accounting services from others who are not that good at what they do. The opinion you get about the services of any professional speaks a lot about its reputation; so if you don’t hear anything good about a specific accounting and bookkeeping firm, don’t hire it.
   
   
2. Understand your Requirements
   
   One of the key factors in your search for good accounting services understands what your business requires. Once you have the overview of what each accounting firm offers, you can take your pick of accounting and bookkeeping services which are more relevant to your business. You can decide the frequency – daily, weekly or yearly accounting services; you can also decide the types of services your business needs: accounting, bookkeeping, tax preparation etc. But remember, for deciding all this, it is crucial that you fully understand what your business requires.
   
   
3. Do some Research
   
   You shouldn’t restrict yourself to any criteria from the beginning. Your search for accounting and bookkeeping services requires in-depth research, as hiring the wrong firm would prove an expensive mistake for your business. Through research, get an overall idea of what accounting and bookkeeping service providers are offering, what their prices are, whether there are any conditions, guarantee of services etc. Ask for their work samples and client testimonials. You can also use the internet to look through websites and connect with other businesses already using accounting services. Such research will help you in matching your business requirements to the accounting services on offer.
   
   
4. Ask for Details
   
   After you have selected a couple of firms providing accounting services, you should ask them for details regarding price quotes, terms and conditions, customer support etc. Once you get the required information, you can decide on the best deal suitable for your business.
   
   
5. Be Patient
   
   If your search for a good accounting and bookkeeping service provider is taking a little time, be patient. There are a lot of professionals out there, and you need to filter through them to find the ideal outsourced accounting service provider for your business. Once you have made the right choice, your business’s accounting and bookkeeping will be safe in the hands of the best professionals in the industry.
   

10 Bookkeeping Tips for your New Business

If you’ve finally taken the plunge and started your own business, you are in for a great experience. There is a lot of hard work and risk involved in owning a business, but nothing compares to the satisfaction of watching your own venture grow and become successful. We have put together an exclusive list of 10 bookkeeping tips to start your business on the right note.

1. Keep Receipts for All Transactions
   
   Receipts for all the transactions are a must for a healthy bookkeeping system. Some businessmen believe that if they are using a check or credit or debit card, they do not need a receipt; they can just refer to their bank account and get the details. But the Internal Revenue System (IRS) policy clearly states that any cash or check transaction needs receipts to be validated. If you cannot produce relevant receipts for transactions, you cannot claim certain tax benefits.
   
   
2. Indulge in Daily Bookkeeping
   
   Maintaining daily records of financial transactions is one of the most important aspects of bookkeeping. If the day-to-day bookkeeping is not up to the mark, then the business can fall apart. If you do not have the time to take care of these administrative duties, consider hiring a firm providing bookkeeping services.
   
   
3. Be Consistent in Bookkeeping
   
   Many small business owners start their bookkeeping with a lot of enthusiasm, but in time, they fail to maintain it consistently. Inconsistency in bookkeeping may be the biggest mistake you make and might prove fatal for your business. As soon as you start your new business, the first pledge must be to maintain your accounting and bookkeeping. If you cannot take care of it yourself, hire an accounting bookkeeping firm to do it for you.
   
   
4. Keep a Trail for Audit
   
   Your bookkeeping should be done in such a way that you can easily retrace your business’s financial transactions. This is not a complicated process and can be done in simple steps like keeping records in their numeric order, not skipping invoice or check numbers and maintaining separate records for your business and personal transactions. If you can trace your business’s financial transactions up to a year backwards, consider your record keeping perfect.
   
   
5. Get a Bank Statement at the End of the Month
   
   Many businessmen believe that simply logging into a bank account and checking the transactions will enable them to reconcile their business expenses. But it is a more complicated procedure than that. Getting a bank statement at the end of the month would be a good idea to reconcile all transactions and track expenses.
   
   
6. Use the Right Accounting System
   
   Determine whether the cash or accrual is the right accounting system for your business and use the one applicable. The IRS requires that if your business has more than $5 million in sales or keeps and inventory, you use the accrual accounting system. (The cash method of accounting counts expenses when you pay them and income when you receive it, whereas in the accrual method you count the income and expenses at the time they happen)
   
   
7. Maintain a File for All Documents
   
   This may sound a simple enough step, but most businessmen fail to follow it. As a result, the end of the financial year has many businesses and their accountants struggling to find documents to support financial transactions. If you simply maintain a file for all the transactions and file the relevant papers at the time of their occurrence, the end-of-the-year hassles won’t happen.
   
   
8. Keep Business and Personal Transactions Separate
   
   Having a separate bank account and credit card for your business is a must for a healthy bookkeeping system. That way, you can keep your personal transactions separate and at the end of the year, claim applicable tax benefits on business transactions.
   
   
9. Use QuickBooks
   
   Using popular softwares like QuickBooks helps in maintaining proper accounting and bookkeeping records for your business. Such softwares make it easy to calculate incomes and expenses and make a great backup system for all your documents. Many known accounting and bookkeeping firms use this system and can help you integrate it into your business for you.
   
   
10. Hire a firm providing bookkeeping services
    
    If all the above points sound too much of a hassle for you to keep in mind, it may be best to hire a professional firm providing expert bookkeeping services.
    

A professional accounting and bookkeeping firm can take all the responsibility for your day-to-day functions so that you can concentrate of growing and expanding your business.

9 Tax Law Changes for 2009 that Make Tax Preparation Easier

While undertaking tax preparation for 2009, you have to be aware of the changes in the tax laws in order to reap the maximum benefit. Given below is the list of the changes which are applicable to small businesses, as explained on the government website for business resources business.gov. Though this list covers the major changes in tax law and will help you in tax preparation, you should consult your tax advisor or CPA for a comprehensive analysis of those applicable to your business. Also keep visiting the official Internal Revenue Service (www.irs.gov) website for the latest updates.

Major changes in tax laws of 2009 include:

1. Commuting and Parking Benefits for Employees - Starting in 2009, businesses can pay $230 a month in tax-free parking for employees, up $10 per month from 2008. The cap on tax-free transit passes rises to $120 a month, up $5 a month from 2008. In addition, you can offer employees who prefer to cycle to work a new tax-free benefit of $20 per month to cover the cost of buying, maintaining, and storing a bicycle for commuting purposes.
   
2. Expensing Business Equipment - What business expense write offs can you plan on this year? The maximum amount of equipment placed in service in 2009 that businesses can expense (section 179 Expense Deduction) falls to $133,000, a $117,000 decrease from 2008, when a temporary $250,000 ceiling was in effect. The annual investment limit drops to $530,000 for 2009. In 2008, the limit had been temporarily increased to $800,000. Keep your ears to the ground on this one, however, as the government may extend the 2008 tax breaks for 2009.
   
3. First-Time Buyers with Home-Based Businesses - If you operate your small business from an office situated within a first-time home purchase, you can still qualify for additional tax incentives - if you purchased your home between April 2, 2008 and June 30, 2009.
   
4. Lower Mileage Rates - As expected, the IRS lowered the standard mileage rates for the business use of vehicles. Beginning on Jan. 1, 2009, the standard mileage rate for the use of a car (also vans, pickups or panel trucks) is:
   
   (a) 55 cents per mile for business miles driven
   (b) 24 cents per mile driven for medical or moving purposes
   (c) 14 cents per mile driven in service of charitable organizations
   
5. Payroll Tax Changes - The maximum amount of wages subject to Social Security tax has increased to $106,800 for 2009, up from $102,000 in 2008. That means you should stop making (and paying) Social Security for employees once they reach $106,801 in eligible earnings in 2009. The tax rate remains 7.65 percent on employers and employees.
   
6. Maximize Your Retirement Contributions - In 2009, small business owners have the opportunity to invest more tax-deductible money in their retirement savings accounts. These include:
   
   (a) 401(k) elective deferrals up to $16,500 (plus another $5,500 for those age 50 or older by the end of 2009); the limits had been $15,500 (plus another $5,000 for those age 50 or older by the end of 2008).
   (b) SEP and profit-sharing plan limit of $49,000 (up from $46,000 in 2008).
   (c) Defined benefit (pension plan) limit of $195,000 (up from $185,000 in 2008).
   
7. Increased Deductions for Health Savings Accounts (HSAs) - You can contribute more in 2009 to business HSAs, with a 100% tax deduction up to a limit of $5,950 for a family, and $3,000 for an individual.
   
8. Bonus First-year Depreciation Ends - Businesses can no longer claim 50 percent bonus first-year depreciation on assets placed in service in 2009.This was a special write-off that was put in place for the 2008 tax year.
   
9. Depreciation of Restaurants and Retail Stores - The current 15-year depreciation period for tenant and restaurant improvements is expanded to include buildings housing restaurants, and improvements made to retail stores that are placed in service in 2009.

It is very important for you to plan your business tax according to these new tax laws. But these laws are ever-changing and you need to keep a track of them each year. If tax preparation and keeping track of business tax laws seems too much of a hassle for you, you can hire an expert tax advisor or a firm which provides tax preparation services. You can also try outsourcing tax preparation. In case you have confusions or questions regarding tax laws, try consulting a professional who specializes in business tax preparation.

ARTICLE SOURCE: http://www.community.business.gov/t5/Government-Resources-for/Tax-Law-Changes-for-2009-What-s-New-for-Your-Small-Business/ba-p/60

How can Tax Preparation and Filing become a hassle-free experience?

The income tax filing season can be a difficult time for many business owners. The IRS is flooded with inquiries from exasperated businessmen regarding tax filing from February till May each year. If you are one of the people who need guidance on your tax issues, browse through the official Internal Revenue Service website www.irs.gov/ for guidance and information.

There are 2 perennial problems businessmen face when it comes to tax preparation:
• Poor Record Keeping
• Keeping Up with the Changing Tax Laws

Problem 1: Poor Record Keeping

Poor record keeping is the problem for most businessmen who are busy in running a business and keeping it profitable. All records of transactions in and out of the business are carelessly kept to the extent that sometimes they don’t know where their business stands financially. At the time of filing business tax, these businessmen are hence clueless. Some businessmen use their checkbooks as records, but face problems when they can’t locate their check registers. Even more disorganized are those businessmen who keep documents in piles or boxes and are referred by CPAs as “shoebox clients”. Such businessmen, at the time of tax filing, miss out on important tax deductions due to lack of documented proof.

Solution

The solution to this problem for businessmen is: get professional help. For all business documents, record keeping and ledgers, a professional bookkeeper should be hired. If a dedicated bookkeeper or bookkeeping service provider is looking after all documents, the businessman need not worry about maintaining his records from day-to-day. This way, at the time of tax preparation and filing, precise information will be available with documented proof.

Problem 2: Keeping up with Changing Tax Laws

Most businessmen also do not have the time to keep up with the constantly changing taxation laws. It is difficult for them to discern which law is applicable to them and which one is not. For example, many states’ laws differ from the Internal Revenue Code and require separate calculations.

Solution

In case of inability to follow the law changes, a businessman should hire a tax professional or tax advisor. Such professionals are updated with the latest changes in all laws related to taxes, and will be able to easily keep track of them. They will also be able to spot the applicable laws in respective situations. You can also regularly check the IRS website www.irs.gov/ for the most updated information regarding laws of tax filing.