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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 to prepare its restaurant for the annual financial statement audit. 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 […]
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 […]
New Standard Applies To Private Companies In 2019 – And It’s Not Revenue Recognition
Article written by: Kristin Romaker, CPA Manager, Assurance & Business Advisory Services While we all have been distracted discussing the implementation of the new accounting standards for leases and revenue recognition, there is another Accounting Standards Update (ASU) sneaking in that is effective for fiscal years beginning after December 15, 2018. The update impacts private companies including not-for-profits and employee […]
Time To Celebrate! FASB Expands VIE Exception For Private Companies
The Financial Accounting Standards Board (FASB) recently gave private companies long-awaited relief from one of the most complicated aspects of financial reporting — consolidation of variable interest entities (VIEs). Here are the details. Old rules Accounting Standards Codification (ASC) Topic 810, Consolidation, was designed to prevent companies from hiding liabilities in off-balance sheet vehicles. It requires businesses to report on […]
Auditing Royalty Agreements
Companies often grant licenses to others allowing them to use intellectual property — such as a patent or proprietary computer code — in exchange for royalties. Licensors can hire an external audit firm to ensure the licensee pays the correct royalty rate and amount. Here’s how the audit process works. The agreement The parties’ attorneys usually create a royalty agreement […]
5 Steps To A Smoother Audit
Article written by: Zach Berardi, CPA Assurance Senior When preparing to be audited, there are multiple workpapers, reports, documents and reconciliations to be organized. Whether arranging for your first audit, or gearing up for next year’s audit, there are a few things to be addressed that can improve the process. The following recommendations are an easy starting point that any […]
Transitioning To Remote Audits
Are you comfortable communicating electronically with your auditors? If so, a logical next step might be to transition from on-site audit procedures to a more “remote” approach. Remote audits can help reduce the time and cost of preparing audited financial statements. 21st century audits Traditionally, audit fieldwork has involved a team of auditors camping out for weeks (or even months) […]