Tax Planning Services for Restaurants

What taxes do restaurants typically need to pay?

Though it varies depending on your location and business structure, some of the taxes restaurants typically need to pay include:

• Sales tax
• Utility tax
• Payroll tax
• Property tax
• State income tax
• Local income tax
• Federal income tax
• Alcoholic beverage tax
• Tourism and hospitality taxes
• Occupational privilege tax (OPT)
• State unemployment tax (SUTA)
• Federal unemployment tax (FUTA)
• Social Security and Medicare taxes (FICA)
• Excise taxes on alcohol, tobacco, etc.

This list can feel overwhelming to look at, but know that our licensed, experienced CPAs are deeply familiar with every single tax above. When you work with us for your restaurant tax planning needs, you can stop lying awake at night worrying about these details.

Are there digital tools to help track restaurant tax deductions?

Yes, there are many digital tools to help track restaurant tax deductions—and even better, we’re well-versed in all the best options.

Gone are the days of fighting with Excel spreadsheets and trying to learn QuickBooks over one weekend. Now, you have comprehensive, cloud-based options that let you check in from any mobile device, anywhere.

Best of all, our top-recommended tools are designed to integrate with most of the restaurant-specific apps you already use, including your POS system.

Get in touch with us today if you’d like to learn more about custom digital solutions for your restaurant tax deductions.

What are common tax filing mistakes made by restaurants?

A few common tax filing mistakes made by restaurants are:

• Overall inadequate recordkeeping
• Errors in sales tax collection and remittance
• Not adhering to IRS tip reporting requirements
• Incorrectly depositing withheld employment taxes
• Misclassifying employees as independent contractors
• Missing out on meaningful industry-specific tax credits
• Incurring penalties due to underpaying estimated taxes

While these tax filing mistakes are common, they’re also entirely avoidable. Working with a knowledgeable CPA for your restaurant tax planning is the best way to prevent these costly errors.

How can a restaurant plan for taxes during an economic downturn?

The best way a restaurant can plan for taxes during an economic downturn is by taking a proactive, strategic approach:

• Conducting regular financial reviews to cut costs and maximize revenue
• Delaying non-essential expenses and negotiating payment terms with suppliers
• Considering tax credits and incentives, including energy efficiency credits
• Maximizing absolutely all deductions and accelerating deductible expenses
• Leveraging accelerated depreciation and cost segregation studies for more write-offs
• Investing in efficient inventory management to reduce waste and overstocking
• Adjusting estimated tax payments to reflect your lower projected income
• Working closely with a restaurant CPA to adjust strategies whenever needed

What are effective tax planning strategies for a new restaurant?

Generally speaking, a few effective tax planning strategies for a new restaurant are:

• Choosing a business structure that suits your specific financial and business goals
• Leveraging start-up cost deductions to minimize your upfront expenses
• Utilizing bonus depreciation for immediate deductions on major costs
• Managing inventory effectively to prevent waste and overstocking
• Taking advantage of employee-related tax credits

But keep in mind that the best restaurant tax planning strategies for you will depend entirely on things like your restaurant’s size, location, and company structure. What works well for someone else may not benefit you.

This is why the best tax planning strategy for a new restaurant is to work with an experienced, knowledgeable, and supportive CPA. When you have guidance every step of the way, filing your taxes—and minimizing your payments—becomes a smooth, straightforward process.

If you’re ready to learn more about how restaurant tax planning can change the way you do business, book a call with us today!