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Over 30 Years of Excellence
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Business success often leads to multiple locations, which exponentially increases financial management complexity. This was the case for one of our restaurant clients. They had eateries in various cities and a significant staff at each location. As a result, figuring out the best path for overall business improvement became overwhelming. However, by collaborating with a business tax specialist near me, they gained the detailed insights needed to make informed decisions for each location and the business as a whole.
When the client came to us, they were overwhelmed, trying to keep track of countless details across multiple locations. Despite their best efforts, they still lacked the insights required to make proper improvements. As a business tax specialist near me, we emphasized the importance of understanding margins at each restaurant location.
We assisted by converting them to our standard chart of accounts, tailoring it to their specific locations and revenue streams. As a trusted business tax specialist near me, we provided both consolidated and location-specific financial statements each month. This approach immediately helped them isolate their food, liquor, and payroll costs. These expenses could be analyzed for each location and understood across the entire group. Consequently, they implemented internal inventory and management changes to improve operations at the underperforming locations.
Moreover, the standardized reporting systems we implemented reduced the time spent adding up receipts and digging through bank statements late at night. This led to a much happier and well-rested client.
Payroll often stands as the largest expense and the most time-consuming task for small business owners. Managing over 200 employees who work various shifts across different cities had become a constant headache for the client. They struggled to track timesheets, enter hours, and correct errors, all while dealing with a different customer service representative at their old payroll processor.
However, once they signed up with EZ Payroll, the payroll division at Haworth & Company, everything changed. What previously took days now requires only minutes. With Employer on the Go, the client delegated hours entry and payroll data uploads to their restaurant managers. Reports became instantly available online, ready for review and authorization from any computer or mobile phone. Moreover, employees gained access to their private portal, where they could download pay stubs and W-2s, eliminating numerous admin hours previously spent on handling requests. Additionally, the client signed up for HR On-Demand, which filled a crucial gap in their small business that they had always struggled with but couldn’t afford to address before. For more information on payroll integration, visit the IRS’s payroll services page.
The client also appreciated the seamless integration of payroll with accounting and tax services at the same firm. They no longer needed to send payroll reports each month. Their business advisor coordinated directly with EZ Payroll, ensuring that the tax benefits from self-employed health insurance expenses didn’t get overlooked at year-end.
After running multiple locations for years, our client thought they had it down. They had a feel for the business environment and they were doing well, but could they be doing better?
Working with a trusted business advisor opened their eyes. Detailed review and discussion of their financial statements exposed issues that had been hidden and mitigated by the success of their best location. Underperforming locations were closed, and soon after a new location was opened that had a greater chance of success.
We explained the concept of cost segregation to our client, showing them how it could reduce taxable income and increase cash flow by managing the timing of their asset depreciation. Once they agreed that this approach made sense, we brought in a specialist to help accelerate the depreciation of assets that would otherwise have been classified under a 39.5-year depreciation schedule.
Eventually, a buyer approached our client with an attractive offer. They asked for our input on what selling the business would mean for them. We discussed the differences between an asset sale and a stock sale, the impact of capital gains versus ordinary income, and the risks associated with depreciation recapture. We provided a tax projection based on the buyer’s initial proposal, along with the client’s most recent financial statements and tax returns. After reviewing all the details, we went further and advised them on how to counter the buyer’s offer to better position themselves. With this information, the client walked away from a deal that might have otherwise led them into a situation that wasn’t in their best interest.
Managing the finances of a multi-location business with a significant number of employees can easily drain an entrepreneur’s energy. However, we take pride in helping these clients get back to what they love about their business. Our expert team uncovers the insights hidden within the numbers to find the best path forward. Contact us to discuss your challenges and discover how we can assist you.
