Restaurant Accounting

Why Hire a Real Estate CPA Firm

Real Estate - BuckhdThe real estate industry is very different from other industries, especially when it comes to accounting and tax issues.

The tax incentives for real estate are very different than other industries.  The timing of expenses, specialized services like cost segregation and 1031 exchanges, debt restructuring and tax deferral strategies can have huge consequences.  For instance, a real estate CPA firm can pull together these strategic pieces that will improve your bottom line that a local generalist can’t replicate.

Second, working with a CPA Firm that works with a wide variety of real estate clients enables them to add more value to your day-to-day business and key business decisions.  If warranted, they can bring specialized services to the table that a local generalist can’t possibly provide.  In other words, working with a regional CPA Firm that works with the right specialists reduces the risk of making business mistakes, missing key tax incentives, and add value immediately to you.

Third, having a small team of accountants that specializes in real estate accounting reduces your annual costs because their depth of knowledge on the subject matter is deeper and without having to charge you more.

As in any industry, there are economies of scale that can be gleaned by working with a specialist.  It is important to let specialists and experts handle matters that require additional expertise and can save you money.  A real estate business can benefit from specialized services when it comes to tax planning, capital spending, budgeting, accounting and estate planning.

And after you hire the best CPA Firm for your industry, you’ll soon realize how easy they make it appear on the surface.

To learn more, call 404-504-7051 and ask for John Charles Roe.

 

Roe CPA is a licensed CPA Firm in Atlanta.  Our clients include property management, real estate investment trust companies, and developers.  Our real estate accounting expertise also applies to our hotel property and restaurant owner operators.

 

Top Tax Mistakes Made by Atlanta Restaurants

Rest TipsKeeping a restaurant up and running and profitable is no easy task. It is estimated that one in five restaurants will close within two years time, so it’s no wonder that tax issues can be pushed to the side when you’re working hard just to keep the doors open. Unfortunately, these five top tax mistakes can cause even more damage if not correctly quickly.

Tip Reporting

Tips may keep your wait staff happy, but the IRS still wants their cut. There are specific rules and requirements that both your employees and you have to follow. For example, the total tip income reported for a pay period must equal at least 8% of sales. In addition, it is your responsibility to collect and report social security, Medicare, and income tax on tips.

Structuring Deposits

Because many restaurants deal in cash, it can be tempting to deposit less than $10k at a time to avoid having to fill out a Currency Transaction Report, (CTR). Too often, business owners feel that filing a CTR will raise a red flag, but the opposite is actually true.

If you structure your deposits, so they are less than $10K, you will quickly gain the attention of the IRS and possibly other government agencies. In addition, avoiding the CTR is a felony.

Employee Classification

It can be tempting to classify your employees as independent contractors to avoid taxes, but this will catch up to you. A business owner can’t make this type of classification on their own. The IRS rule comes down to whether or not your employee is under your control and direction. If so, they are an employee and not an independent contractor. To classify them incorrectly can lead to heavy penalties.

Not Paying Employment Taxes

If  you’re having trouble paying vendors or your lease payments, it may seem like a good option to put off paying employment taxes. This is always a mistake. You will be liable for IRS penalties not only as a business but also as an individual. This debt cannot be discharged in a bankruptcy.

Unorganized Record Keeping

This is one area where the pain comes from losing possible deductions instead of being penalized by the government. By keeping good records, you can take full advantage of business tax deductions. This can be the difference between being in the black or falling back into the red.

If you are tired of overpaying taxes and worrying about tax compliance, then call 404-504-7051 and ask for John Charles.

 

Roe CPA makes life easier for hospitality businesses, everything from tax compliance to financial reporting to accounts payable.  Our hospitality accounting expertise helps us better service hotels, restaurants, brew pubs, bars, and golf courses.