New York Department of Labor Releases Final Version of Hospitality Wage Order Effective January 1, 2011
Effective January 1, 2011, the new Part 146 titled “Hospitality Wage Order” covers employees in both the Hotel and Restaurant Industries. Effective January 1, 2011, the Wage Order will increase the tipped minimum wage, increase the spread of hours coverage and affect other areas such as tip pooling and tip sharing, record keeping and private event contracts
While the Wage Order becomes effective on January 1, 2011, the NY DOL has granted restaurants and hotels a grace period to educate themselves on the new rules and make all necessary payroll system changes needed to comply with the requirements of the new Wage Order. By March 1, 2011 (or the next regularly scheduled pay day following March 1, 2011), all employees covered by the Wage Order must be paid any additional wages owed to them on account of the increases retroactive to January 1, 2011.
Bookkeeping and financial reports tend to be a tedious task for the busy business owner. There just isn’t enough time in the day to handle bookkeeping effectively, while at the same time focusing on revenue generating activities, purchasing, and managing employees.
Yet making precise and efficient decisions regarding money is absolutely paramount to maintaining a successful business. Understanding when to reduce purchases, pull back on labor and increase sales on slow days based on sales trends. With accurate bookkeeping this can be done without the guess work.
At Back Office Solutions, we work with a variety of owners in the hospitality industry located in New York City. As their bookkeepers, we work to educate them on emerging trends and opportunities dealing with financials. We are always looking for ways we can help our clients’ improve their record keeping and help them feel completely confident with their numbers.
There are two types of accounting:
- Cash Basis Method
-Recording revenue when cash, checks and credit card batches are received
-Recording expenses when checks clear the bank account and credit card charges are posted
Accrual Basis Method
-Recording revenue when it is earned
-Recording expenses when the expense occurs, not when the cash is paid
As you can see, there are two distinct types of bookkeeping methods. For owners who use Cash Basis, it’s tough to adjust to sales trends and purchases, as the data was recorded when revenue was deposited into the bank and expenses were not recognized until payment had been made. Accrual Basis on the other hand, allows business owners to adjust based on sales, expenses and labor, since the data is recorded as it occurs.
The choice is yours. Either way, keeping accurate financials at all times is not only smart business, it’s necessary business. On any given day, you can be audited:
A Worker’s Compensation Audit requires accurate payroll records and general ledgers
A Sales Tax Audit requires accurate sales numbers
If this happened to you tomorrow, would you be prepared? Back Office Solutions can be your partner in financial reporting, allowing you to focus on running your business, while we focus on the numbers.
Right now, can you pull up your business balance sheet and easily see what you owe? Loans, Lines of Credit, Accounts Receivable, Accounts Payable, etc. Accurate financials are crucial to business success. We would not recommend going into business, or running an existing one, without this part being handled correctly.
Lastly, when applying for a loan or looking for investors to fund your growing business, you will be asked for financial data: Profit & Loss, Balance Sheet, Cash Flow, etc.
When you outsource your bookkeeping to Back Office Solutions, you are gaining peace of mind. With just a call or email, the financial reports you need will be on your desk before you go to lunch.
If now is the time to implement or revamp your accounting system or procedures without the huge expense of hiring and managing, give us a call at 718-412-2570 or email email@example.com. Back Office Solutions are your bookkeeping experts in the foodservice industry. Let us take one thing off your plate.
You’re running a successful business. Fantastic! But are you running that business as effectively as possible? Do you find you’re spending time and money in areas that could potentially be outsourced to industry professionals? Examine your current situation and if you identify with the points below, Back Office Solutions can help.
Decrease costs yet increase productivity? Very possible. Too often, bookkeeping is looked at as an operation that needs to happen in-house. Often the person(s) handling the financials are not specifically trained in that area of expertise, such as General Managers taking on the role of bookkeeper or a bartender tasked with payroll processing. Due to the lack of qualifications, costly mistakes can happen. The benefits of working with bookkeeping experts in the food service industry can help avoid these mistakes and take your business to the next level.
If your current bookkeeping is done on-site by employees, you are paying them annual salaries. Think about those numbers right now. Now add in:
- Cost of health insurance
- Cost of vacation and paid sick days
- Cost of retirement plans and worker’s compensation
- Time and money lost when that employee is not in the office
An employee working on-site requires office space, so add in costs for:
- Rent, computer, printer, furniture, ink, office supplies
Let’s look at another level and add in costs regarding:
- Hiring and Training
Retention is a scary thing. While you may be lucky and find an employee that remains at your business for many years, you will also lose many employees to a variety of situations and hiring and training costs time and money. From running employment ads, to scanning candidates, to conducting interviews, to creating job offers and performing the necessary training activities.
Not to mention, those in charge of training are taking time away from their duties, so double time and productivity is lost. Even after training, a newcomer to the field can make errors easily:
- Incorrect allocation of invoices, which will skew Cost of Goods (COGS)
- Lack of knowledge with prepaid and accrual entries
- Over payments to vendors
- Payroll entries
- Worker’s Compensation Audits
These errors are costly when your accountant reviews your books before filing the company tax returns.
With Back Office Solutions, you gain:
- Professional bookkeepers with experience in the food service industry
- Account specialists available M-F during normal business hours
- Excellent customer service and a true partner, extension of your business
- Inside knowledge and information with respect to restaurant accounting software/technology trends
- Consistent accurate and timely financial reporting
Which will allow you to focus on sales, expansion, growth and revenue, allowing Back Office Solutions to handle tasks like invoicing, payroll, reporting, vendor invoices, bank reconciliation, profit and loss statements, etc.
As a member of the Restaurant Association, AIPB and AICPA, Neema Consulting is always aware of changes affecting the industry. And they make it easy to communicate with the office using tools such as LogMeIn, RDP and GoToMeeting. Neema Consulting is in your business and at your side with the click of a mouse or the sharing of a screen.
If you are ready to explore Back Office Solutions and professional bookkeeping services, please call 718-412-2570 or email firstname.lastname@example.org.