Tax Issues for Restaurants
Should I Incorporate My Business? Ask us.
Business Deductions for Restaurants
Tax deductible expenses include:
- Merchant fees
- Point-Of-Sale Expenses
- Food and alcohol
- Restaurant supplies
- Repairs and Maintenance
- Rental and utility expenses
- Travel expenses
- Make travel deductible in a legal way.
- Marketing/branding, e.g. to develop your brand logo when selling your own brand Advertising
HST Issues for Restaurants
Keep a separate bank account for HST and tax (transfer ~20% income to this account) – HST is not your income, you only collect for CRA.
Accounting Issues for Restaurants
- Use a Cloud-based Accounting System and point-of-sale system, ask us about your options.
- Set up a proper chart of accounts to fit your operations.
- Set up tracking categories to track restaurant sales and operations by category.
- Keep concise records of purchases and income regardless if the transaction is electronic or by cash.
- Report tips (pool tips or direct)
Payroll Issues for Restaurants
Payroll Management for Restaurants
- Make sure all employees are on your payroll system.
- Understand payroll laws and regulations for different payroll scenarios (I.e. – holiday pay, vacation pay, overtime pay).
- Our office provides a complete hassle-free payroll system, contact us for more details.
- High turnover can complicate payroll, we can help simplify your payroll management.
- Report casual labour on T4A tax slips.
Workers Compensation and EHT for Restaurants
- If your gross payroll exceeds $450,000, you will be required to remit the Employee Health Tax to the Ontario Government. Ask us if this situation applies to you.
- You may be liable to pay Worker’s Compensation Insurance for all provinces that your business operates in. Ask us for more details.
Accounting Solutions Across Every Industry Sector
Xero Online Accounting Software
Operate more efficiently and have more time to focus on your business. Find out why over 300,000 people worldwide have moved to Xero’s online accounting solution.
Xero Key Features
- Invoicing Made Easy
Not only can you create professional recurring invoices in Xero, you can also keep track of when they are opened.
- Value For Money
Xero reduces your upfront business costs with free upgrades and access for an unlimited number of users all at an affordable monthly fee.
- At-A-Glance Dashboard
With just one click, you can see your bank balance, invoices, bills and expense claims, without having to log onto various websites.
- Automatic Bank Reconciliation
Xero imports and categorizes you latest bank, PayPal and credit card transactions so reconciliation is just one click away.