Accounting Recipe for Restaurants

By Gary Hewamadduma ACMA, CPA, CGMA, MBA, B.Sc.(Hons) in Computer Engineering Finding the right formula for revenue, cost of goods sales (COGS), labor costs, promotional giveaways, controllable overheads and non-controllable overheads is essential in running a restaurant entity. The reason for most restaurants being short-lived is not the taste of food or the service level….

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Invoice Factoring

By Gary Hewamadduma ACMA, CPA, CGMA, MBA, B.Sc.(Hons) in Computer Engineering Invoice factoring (AKA; invoice discounting, debtor financing, receivables factoring) is a great option for companies that need to manage their working capital but unable to secure a conventional short-term bank loan to increase short-term liquidity. Factoring should not be confused with “receivable financing” or…

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83(b) Election – Trick or Treat?

By Gary Hewamadduma ACMA, CPA, CGMA, MBA, B.Sc.(Hons) in Computer Engineering You are a founder of a company or a member of the founding team of employees. Company has a lot of promise, but funds raised are for purposes other than for C-suite compensation. So, the Board decides to compensate you with equity stock. Once…

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Should I issue 1099s for my payments?

By Gary Hewamadduma ACMA, CPA, CGMA, MBA, B.Sc.(Hons) in Computer Engineering All businesses have goods and services vendors. IRS mandates that all service-related vendor payments be reported on a form 1099 at year end, with a copy to IRS. However, there is a quite a bit of confusion around collection of W9 form and submission…

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Data Security – The reality check

First off, the intention of this article is not to discuss the technical aspects of data security, but to touch on the perceptions of security, when it comes to remotely managed back-offices. When we get on a plane, we never question the skill set of the pilot. We automatically assume that the airline has followed…

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Contractor VS Employee

If you are managing a business, cost savings are a top priority. When it comes to cost savings, labor expenses is probably at the top of the list. With ‘labor expenses’ comes the decision of whether to hire people as internal employees (W2 employees) or Contract employees (AKA 1099 employees). While there are many advantages…

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