5 Ways CPA Firms in NYC Can Increase the Revenue of Local Bars, Nightclubs, and Restaurants

New York, NY, October 11, 2012 --(PR.com)-- Manhattan has always been known for it for its fine dining, energetic nightlife, and exquisite drinks. But doing business in the Big Apple every day won’t keep the IRS away. While city-dwellers and tourists alike enjoy what these industries have to offer, a behind-the-scenes glimpse into the workings of most establishments reveals that they are struggling financially in one way or another. To cut costs, many owners or managers try to take over the number crunching and account keeping themselves or hire an in-house bookkeeper.

But in many instances, bars, nightclubs, and restaurants in the city can actually save and even grow more in the long run by partnering with a NYC CPA. Here are 5 ways that a New York City CPA can save his or her clients time and money—giving them more of both to spend on building their businesses.

1. Staying Safe During Audits and Avoiding Fees. Bars, nightclubs, and restaurants stand to lose money in fees, interest, and penalties if their sales are not documented correctly. Keeping appropriate records isn’t quite as straightforward for these industries as it is for others— attempting to figure out the correct bookkeeping and tax procedures for mixed drinks, tips, and contracted workers without the right information can throw a wrench into the entire bookkeeping process. A New York CPA will help these companies avoid audits and penalties by staying compliant to regulations.

2. Tax Breaks. On the other hand, companies stand to save their money by applying for certain tax breaks that they might not even know about. Staying up to date can help bars, restaurants and nightclubs cash in on certain tax breaks, such as Section 179 expensing, Bonus Depreciation, and the FICA tip credit. Being eligible for lots of small and obscure tax breaks can add up to significant savings in the long run. Good and experienced CPAs can find these and apply them to their clients’ tax forms.

3. The impact of a CPA on a company’s organizational habits can dramatically decrease the likelihood of internal theft. It is estimated that bars and nightclubs lose around 23% of their inventory to internal theft. Getting your books and your inventory aligned will set a high standard for your managers and workers to follow. If you don’t mess around with your money, chances are your employees won’t either.

4. By organizing your finances and monitoring your overhead and bottom line, you can get your company positioned to grow and expand. Good New York CPA Firms can keep everything together and help companies plan their next financial move.

5. CPAs can provide other financial advice and guidance. In some cases, partnering with a CPA will yield other benefits. Many experienced CPAs can help a company reap the benefits of using a computerized accounting systems like Quickbooks. They can also assist in the formation of new corporations and LLCs and help companies to apply for SBA loans and other financing.

New York CPA Anil Melwani, of Armel Tax and Accounting Services, has helped several bars, nightclubs, and restaurants in New York City make it through the recession. He knows that some companies will avoid seeking help or even completing their taxes because they’re afraid they won’t have the resources needed. Melwani adds, "Here in New York City, most medium to larger CPA firms charge for very high hourly rates, require high monthly retainers, or have a minimum fee for tax preparation. We sit down with each prospective client, go through their specific situation, then advise our price quote based on what the client actually needs." Melwani believes the number one reason that companies should use a CPA firm is so they will be able to spend more time on growing their business and less on crunching numbers.

From experience, he knows how important having the right accounting services can be. Says Melwani, "Owning and operating a restaurant in Manhattan is extremely competitive. Having an experienced CPA to help optimize your profits and minimize your losses is integral to your success." Armel Tax seeks to help businesses reach their next level with financial leadership and guidance.

The firm was established in 2008 and has been helping companies throughout the tri-state area ever since. For a wealth of tax information, check out the website of the New York City CPA here.