Recent Articles

January 2014

Alcohol Costs – Monitor Closely


In the restaurant business, alcohol is the single best margin generator.   If you are going to have a profit, this is where the money is made.  As an owner, you need to understand the value of alcohol sales and the associated costs.  This aspect [...]

Partnership Agreements – Terminology


Each of us has our own built in dictionary for terms we hear in our business lives.  I find it fascinating that the standard business term ‘Equity’ is interpreted differently within the business world.  I often interpret the term using the [...]

Common Stock – Definition


A document indicating ownership in a corporation is often referred to as common stock.   It identifies an equity position in a business.  The document or certificate is commonly referred to as a security and provides certain rights to the holder [...]

Capital Expenditures – IRS Definition


The Internal Revenue Service uses a complex definition to identify capital expenditures (assets).  A capital expenditure is not deductible as an expense in the tax year purchased; the taxpayer or entity must use depreciation, amortization or [...]

Tip Income – Employer’s Responsibilities


The Internal Revenue Service is acutely aware of the volume of tip income generated in the United States.  Therefore they are shifting the compliance aspect of this income onto employers.  This is a direct result of our government’s need for [...]

Quick Ratio – Definition, Explanation and Proper Use


The quick ratio is a formula used in business to identify the ability of a business to pay its current liabilities.  It is also known as the ‘Acid Test’ formula (ratio).  In the large markets this formula is one of the financial industry [...]

Partnership Agreements – An Introduction


There is a tremendous amount of information to convey to fully understand partnership agreements.  This is the first in a series of articles related to partnership agreements.  Throughout this series I will explain the various sections and issues [...]

Mileage Deduction – Rate for 2014


On December 6, 2013, the Internal Revenue Service announced the mileage rate deduction for 2014.  They reduced the amount allowed one-half a cent to 56 cents per mile.  So how do you calculate and use the mileage rate formula for tax purposes?  [...]