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Franchisor Accounting Update – Recognition Of Initial Franchise Fees
Article originally published December 16, 2020 Last updated March 2, 2021 GAAP Update: Franchisor Revenue Practical Expedient Issue: In January 2021, the Financial Accounting Standard Board issued Accounting Standards Update No. 2021-02 Franchisors – Revenue from Contracts with Customers (Subtopic 952-606). The below article includes the highlights, disclosure and effective date and remains unchanged. Early adoption is permitted. As you […]
Accounting For Delivery Fees
Article written by: Dustin Minton, CPA, MBA Director, Assurance & Business Advisory Services Anna Markin, CPA, MBA Manager, Assurance & Business Advisory Services For the past few years, the delivery trend has been on the rise with many delivery service providers (DSPs) like DoorDash, Grubhub, and Uber Eats providing an easy and convenient platform for your customers […]
Year-End Audit Reminders In A COVID Era
Article written by: Anna Markin, CPA, MBA Manager, Assurance & Business Advisory Services As 2020 quickly comes to an end, we are pleased to provide restaurateurs with an annual reminder of items to keep on the radar before the annual financial statement audit. Planning is the key to a successful and efficient audit. Staying in touch with your external audit […]
Gift Card Breakage Accounting
Article written by: Anna Markin, CPA, MBA Manager, Assurance & Business Advisory Services The holiday season is quickly approaching, and gift card promotions remain top of mind for management. As promised in Part I of our gift card accounting series, we are pleased to share Part II of the seasonal reminder for gift card accounting as you finalize promotions. A […]
Accounting for Gift Cards: Prepare for the Holiday Season
Article written by: Anna Markin, CPA, MBA Manager, Assurance & Business Advisory Services Holiday seasons bring joy and excitement to all with colorful autumn trees, family gatherings and festive decorations. When it comes to restaurant entities, it’s also a time for bustling gift card sales and various promotions! However, before running any promotion, restaurants should ensure they are ready to […]
Restaurant Research RRin5: Accounting For Delivery with Dustin Minton
Recently, Dustin Minton, Director of Restaurant Services, had the opportunity to participate in Restaurant Research’s first podcast, RRin5, featuring five-minute discussions on industry hot topics. To kick off the launch of their podcast series, Dustin had the opportunity to discuss the profitability and accounting treatment of delivery fees, exploring the profitability under differing scenarios, as well as the GAAP accounting […]
Have You Started To Implement The New Lease Accounting Guidance?
Article written by: Dustin Minton Director, Restaurant Services With 2019 closed out, it is time to face the inevitable of Lease Accounting under ASC 842. We were given a one-year reprieve by the FASB at the end of 2019 due to the unforeseen complexities of implementing ASC 842 that many public companies experienced. Based on experience, it is complicated and […]
Preparing For Your Financial Statement Audit
There are a few easy steps a restaurant owner can take when preparing financial statements. When auditors arrive for fieldwork, it’s important that the staff be knowledgeable and prepared for the process so that the auditors can get in and out as quickly as possible. Reviewing the process and individual steps ahead of the financial audit will minimize interruptions to […]
What To Expect During A Franchise Audit
It’s important for franchisors to periodically audit individual franchisees. These routine “check-ups” are especially valuable in a store’s early years of operations or if performance starts to deteriorate. They can be used to detect symptoms of unhealthy performance and treat problems before they spiral out of control. Focus on royalty payments Royalties are a franchisor’s primary source of income. Because […]