A good accounting service is priceless. It gives you financial peace of mind, insight into your business operations, and help and support when you need it most. But not all accountants offer you the same degree of value, so how do you pick the right one for your business?
Despite the separate functions of bookkeeping and accounting, both play a critical role in the financial lifecycle of your expanding business.
Do-it-yourself business types often find a tipping point -- where the tasks of recording daily transactions, completing payroll, analyzing financial reports, and preparing tax documents consumes the majority of their time, potentially hurting business objectives and fostering burnout.
Annual accounting firms tend to offer limited services. They only deal with your finances when the year is over -- they aren’t in touch with your business operations in real time. In comparison, monthly accountants provide ongoing support, advice, and insight to your finances.
If you work with a monthly accountant, here are some of the services you’ll get each month.
Managing food and labor costs is a crucial aspect of running a profitable restaurant or food service business. Combined, these controllable costs are known in the industry as your prime cost, which is reported as a percentage of your sales.
To remain profitable in the restaurant business, your maximum prime cost should generally be lower than 65%. As food and labor costs vary among different types of operations, prime cost ranges may dip as low as 55%. Finding your sweet spot within this range will help you achieve profitability without negatively affecting service and quality of your offerings.
Odds are you’re a bit busy this holiday season, especially if your small business caters to seasonal products and services. Now, however, is the time to start thinking, and preparing, to save on taxes for 2015 and the coming year. By implementing a few practical strategies for cash-basis entities in December, you can potentially reduce your current tax payment and set the stage for savings in 2016.