Hospitality Industry: 6 Common Tax Deductions

Restaurant workers looking at ipad by the bar.

Are you aware of tax deductions and credits your hospitality business may be eligible for? Many hospitality owners tend to focus on the day-to-day operations and dealing with compliance regulations. Tax related matters tend to be postponed until after the end of the year. Now is the time to plan ahead for tax deductions to maximize the tax savings in the future. Smith Schafer has provided a list of possible deductions and credits to help our hospitality clients, prospects and others be aware of possible tax savings in the hospitality industry.

 

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Construction Industry: Tax Reform Impact

The new tax reform law is the most significant tax legislation in decades. Now construction companies are trying to digest the details and evaluate how the changes will impact their tax situation. One key objective was to reduce taxes on companies doing business in the U.S. to make them more competitive. Prior to the change, the U.S. had one of the highest corporate tax rates globally.

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Our Client Loyalty Program

Business clients engaged in a handshake

“When it comes to client relationships, Smith Schafer's belief has always been, shop with clients who do business with us,” Managing Principal, Steve Erchul, stated.

To encourage our employees to honor this motto, we created the Client Loyalty Program in 2015. The purpose of the program is to actively encourage our staff to purchase goods and services from clients and to reward them for doing so.  Each month, staff members submit their receipts in order to receive an entry into a monthly prize drawing. The more times they choose to shop with clients, the more times they are entered into the drawing. One winner is chosen every month and receives a Visa gift card.

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Transportation Industry: Tax Tips & Common Deductions

Roadway with vehicles traveling toward mountains

The Tax Cuts and Jobs Act (TCJA) tax reform has left many taxpayers confused about what is and what is not deductible for the upcoming 2018 tax year. Smith Schafer has a team of transportation experts ready to answer your questions. Below are some common deductions the transportation industry may see this year:

 

1. Meals & Entertainment

Under the TCJA, transportation company owners may deduct 50 percent of food and beverage related to operating a trade or business, with a couple conditions:

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Understanding the Basics of Restaurant Accounting

Restaurant table set for dining

Did you know about half of all small businesses fail due to bookkeeping and accounting errors? A majority of those failures are directly related to poor accounting practices.

Many growing restaurants struggle to create a well-tuned accounting process, especially as certain systems and processes change to support increased activity. While invoicing, accounts payable and payroll often suffer first, improper or delayed accounting also stifles future growth by limiting the necessary data for strategic decisions.
 

<< Click to Read Tax Credits for Restaurants >>

 

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Commonly Missed Tax Deductions in the Construction Industry

For many construction industry business owners, they are concerned with the day-to-day activities that keep their business running. For example, hiring help for a new project or purchasing a new piece of equipment to replace an outdated one. Many owners tend to focus on the daily grind and put off thinking about the taxes until January or February, but doing so, may come at a cost. Success in the construction industry requires the ability to understand and prioritize accounting and tax planning.

Below are commonly missed tax deductions and credits construction industry business owners should take advantage of:

 

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Tax Reform Bill Overview

The new tax reform law — commonly referred to as the "Tax Cuts and Jobs Act"  is the most significant tax legislation in decades. Now businesses and individuals are trying to digest the details and evaluate how the changes will impact their tax situation. Fortunately, Smith Schafer can help you figure things out. Let's start with a basic overview of what is covered in the new law. (Except where noted, these changes are effective for tax years beginning after December 31, 2017.)

 

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Payroll Tips for Restaurants

Empty restaurant dining area and tables

Restaurant payroll is ruled by complex laws for employee wages and tips. With high turnover, unique tax situations and generally, large amounts of checks to be processed, managing a restaurant’s payroll and legal compliance can be a challenge. There are many ways minimum wage regulations, the tip credit, reporting and processing can affect payroll. Below are a few tips and rules to help payroll be a little easier:

 

Minimum Wage

As of January 1, 2019, the Minnesota minimum wage rate will increase to $9.86 per hour for large employers and $8.04 for others. The new rates will be:

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Revenue Recognition: 5 Items Affecting the Construction Industry

Hanging construction hard hats at work site

The threat of revenue recognition has been around since 2010, when the first draft of the new standard was released. Three exposure drafts and numerous accounting standards later, we are finally on the doorstep of being required to recognize income under the five step approach found in Accounting Standard Codification (ASC) 606. Although public companies have been reporting under ASC 606 for all of 2018, non-public companies are not required to adopt until years beginning after December 15, 2018. 
 

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5 Ways the New Lease Accounting Rules will Impact Transportation Companies

The new lease accounting rules will have a significant impact on the financial statements of transportation companies leasing real property, equipment, vehicles and other fixed assets. The new lease rules apply to all leases with a term of more than one year and go into effect for nonpublic companies with fiscal years beginning after December 15, 2019. Below are five ways the new lease rules may affect transportation companies:

 

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