You might have heard about the importance of a food cost calculator, but how does it actually help you? Your end goal isn’t to figure out how much your food costs. It’s to boost your profits by setting smart prices and ordering in the right quantities. Here’s how to use your food cost calculator to get there.
Why do so many restaurant owners hate doing accounts?
Often, it?s because they don?t see accounting as something that adds value to the business. Bookkeeping is one of the many admin tasks that pulls you away from where the real action is, in the kitchen and out front.
You can file Form 8846 if you meet two requirements. These requirements are:
Your employees earned tips from customers for their service and/or delivery work at your food/beverage establishment where tipping is customary.
You must pay employer Social Security and Medicare taxes on those tips.
Have you ever thought about Internal Accounting Controls? Your accountant may only be paying attention to the numbers. This can be very costly. Smart thieves can drain your accounts. They can take profits away from the business even though a CPA may be auditing the books. They will do things you never thought of. Every company’s goal is to turn profits. To do that, you must get your cash management under control.
Do your workers earn tips? If so, using Form 4070 from the IRS will help you keep the books accurate. This form acts as an “Employee’s Daily Record of Tips”. It enables you to track how much your employees are earning in tips each payroll period.
Hospitality is one industry where many employees earn the majority of their wages through tips. If you operate such a business, you will need to withhold taxes for your employees for the tips that they earn. This is in addition to what you withhold from their salary or hourly pay. Form 8027 is what you’ll use to report the tips employees earn.
Workers who receive tips through their job must use Form 4137 as a means of reporting their earnings. We realize how confusing tax forms can be so here is a comprehensive guide to Form 4137. We’ll cover reporting tips, tip taxation, and everything needed to understand this form.
You can’t have a great restaurant without great staff. From the valet to the waiter to the cook to the cleaner, each of your employees helps to create the perfect customer experience.