Tax-Ready Restaurants: Essential Documents Your Accountant Needs

Let's get your restaurant/restaurant Franchise Tax-Ready for the upcoming tax season: Today we are diving into the Essential Documents Your Accountant Needs.

Tax season is almost here! It's time to ensure all of your restaurant's financial records are in order, otherwise, you will not experience a smooth filing process. In this free resource/blog, we'll guide you through the essential documents your accountant/tax filling professional will need to efficiently file your upcoming annual taxes.

1. Income Statements (Profit and Loss Statements):

   This will provide a detailed record of your restaurant's revenue, cost of goods sold (COGS), and expenses. Clear income statements are fundamental for accurate tax calculations (guessing/rounding will  put you in hot water with the IRS).

2. Expense Receipts:

   Collect and organize all receipts for all of your business-related expenses, including: purchases, utilities, rent, and any other operational costs. Proper documentation ensures deductions are maximized.

3. Payroll Records:

   Gather all of your payroll documents, including employee salaries, benefits, and tax withholdings. having accurate payroll information is crucial for both federal and state tax compliance.

4. Bank Statements:

   Submit complete bank statements for the tax year, highlighting all financial transactions related to your restaurant. This includes income deposits, expenses, and any loan transactions.

5. Depreciation Schedules:

   Provide details on any depreciable assets your restaurant owns. This includes equipment, furniture, or property. Accurate depreciation schedules contribute to proper tax deductions.

6. Sales Tax Reports:

   Include records of sales tax collected, if applicable. This is especially crucial for restaurants with retail components. Clear documentation ensures compliance with tax regulations.

7. Inventory Reports:

   If your restaurant manages inventory, offer comprehensive reports detailing opening and closing inventory, purchases, and usage. Accurate inventory data impacts the cost of goods sold (COGS) calculation.

8. 1099 Forms: 

   If your restaurant works with freelancers or contractors, provide 1099 forms for each. This ensures compliance with tax regulations regarding non-employee compensation. Check out our latest video to learn everything you need about 1099s

Business Structure Documents:

   Offer documentation specifying your restaurant's business structure, whether it's a sole proprietorship, LLC, partnership, or corporation. This information influences your tax filing requirements.

10. Previous Tax Returns:

   Include copies of your previous year's tax returns. This provides your accountant with historical data and insights into your restaurant's financial trajectory.

BOSUS: I recommend saving the documents in a google drive folder ( include the year in the name of the folder. This ensures, you will always have access to your documents when you need them.

By proactively gathering and organizing these documents, you set the stage for a seamless tax filing process. Collaborate closely with your Bookkeeper &  accountant. It's important to ensure all necessary information/documents are sent to your accountant/tax filling professional promptly. With thorough preparation, you'll not only meet your tax obligations but also gain valuable insights into your restaurant's financial health. Your accountant will thank you.

Ready to tackle tax season head-on?  Do you feel ready for the upcoming tax season?

Ready to transform your restaurant's finances? Whether you need Monthly Bookkeeping, a Catch-up Bookkeeping service, or want to embark on our DIY Bookkeeping course, we've got you covered. Have questions or need more information? Don't hesitate to reach out. Let's talk about how we can support your business. Schedule your FREE 15-Minute Call today and let's get started on your path to stress-free bookkeeping!