The Adventures of the Restaurant Site Assessment

March 22, 2018By Robert A. Benson

Here at KROST, we have conducted several Restaurant Site Assessment (RSA) to help give owners and operators an insight into their processes and procedures and we wanted to share some of the interesting issues that we have come across. Sometimes, they even surprise us. At a full-service restaurant, after a 10-minute introduction, we asked the … Read More

Restaurant Industry Tax Update

March 22, 2018By KROST CPAs

As the dust is settling from tax reform, restaurant owners should be aware of some changes that may have a substantial impact on their tax liability, both positively or negatively. In this post, we discuss the rules related to capital expenses and depreciation for restaurateurs that own buildings or have paid for significant improvements to … Read More

Client Profile: El Cholo Cafe

March 22, 2018By Robert A. Benson

We are fortunate to have clients that are an integral part of the history of dining in Los Angeles such as El Cholo Cafe. El Cholo Cafe traces its history all the way back to their first restaurant, which opened in 1924 on Broadway and Santa Barbara Street (near the Coliseum). It has remained a … Read More

Does the New Tax Code Affect Your Business?

March 21, 2018By Jean Hagan

There are several changes in the new tax code that may or may not affect your sales. We are particularly concerned about lunch and daytime event sales, as these are the areas that could be affected the most. Code section 13304 in the Tax Cut and Jobs Act (TCJA) amends the IRC section 274 about … Read More

The Big Change on Tip Distributions and Tip Credits

February 9, 2018By Robert A Benson

On December 15, 2017, The Federal Labor Department notified the Office of Management and Budget that it intends to rescind the current rule (FLSA Sec. 203 “m”) that restaurant owners can only distribute pooled tips to employees “who customarily and regularly receive tips.” The newly proposed change (29 CFR 531) would effectively return the rule … Read More

Annual 8027 – Employers Annual Information Return of Tip Income

February 7, 2018By Jean Hagan

It’s that time of year again to calculate your tip liability. 8027 forms are due annually by the last day of February on paper, or April 2nd electronically. Employers that operate where food and beverages are served for onsite consumption and tipping is customary are required to file. Also, any employer with more than 10 … Read More

Restaurant Owners, Hold on to Your Profits!

February 2, 2018By KROST CPAs

According to the US Chamber of Commerce, approximately one-third of bankruptcies and/or business failures are directly related to employee theft, embezzlement or fraud. That same report states that 75% of these employee crimes go unnoticed until it is too late. We don’t want to you be a statistic. Our Restaurant Site Audit (RSA) is a … Read More

Cash Flow Relief: How Your Vendors Can Help You

January 15, 2018By Melissa Cunarro

One of the best ways you have available to you to improve your cash flow is to renegotiate your vendor terms. Improved vendor terms allow for additional lead time between payments to purveyors, and provide relief when your bi-weekly payrolls, monthly rent, insurances and sales tax payments are due. It’s common practice for vendors to … Read More

New California Hiring Practices for 2018

December 20, 2017By KROST CPAs

During the latter half of 2017, California enacted new employment laws that will affect your business’s hiring practices starting on January 1, 2018. Employers can no longer ask applicants about prior salary. On October 12th, the governor approved AB 168 authored by Assembly member Susan Talamentes Eggman (District 13). AB 168 would prohibit an employer … Read More