It’s good to see outdoor dining spaces opening at local Twin Cities restaurants this spring. Patios are getting swept, tables and chairs are receiving a power wash, and sun umbrellas are popping up along sidewalks.

All of the prep tends to move it’s way inside the building as management and staff are in spring cleaning mode. Don't let the momentum stop there. 

Annual tax hangover or not, now's the time to do some spring cleaning of the financial variety.

Doing so will allow you to trim expenses, identify new opportunities, and carve out more time to work on building profitability for your restaurant rather than being swept up in the day-to-day activities.

Depending on the health of your business, the decision to file for a tax extension this year may have been for good reason. You may have experienced unexpected growth that led to more complex tax obligations, or you realized you’re just too busy working on your business at this point in the season to accurately process the required forms. These are valid reasons to file for an extension and a good indication you’re ready for professional accounting services moving forward.

One of the largest obligations a business owner has is conducting payroll. Tracking, reporting, and executing payroll for your restaurant involves many tasks to ensure accuracy, timeliness, and compliance. Payroll duties should not be rushed; otherwise, costly errors may occur resulting in upset employees and penalties from government agencies. 

While we strongly advise every small business owner to partner with an accounting firm for tax preparation and filing, we understand that many restaurant owners are simply not aware of certain tax provisions that could save them a lot of money.

Because restaurants have unique costs, you are eligible to claim deductions to reduce taxable income. By maximizing your tax deductions, you lower the reported profit for your restaurant, which helps minimize the taxes you owe.