Day: June 30, 2025

5 Benefits of Outsourcing Your Restaurant’s CFO

In the restaurant business, the Chief Financial Officer (CFO) is responsible for managing the financial aspects of the restaurant, from financial reporting and projections to compliance and overseeing finance team members, with many functions in between. The CFO role is a critical one—however, the cost of hiring a full-time in-house CFO is significant, especially for small and medium-sized businesses. For many restaurants, outsourced CFO services provide a much more practical and flexible solution to financial management. Below are five benefits of outsourcing your restaurant’s Chief Financial Officer functions.

Cost Savings

One factor a restaurant owner must consider when deciding whether to outsource CFO functions to an accounting firm is the real cost of hiring a new full-time employee. In addition to an employee’s salary, the business also bears the costs of recruitment, training, office space, medical benefits, FICA taxes, and payments into a pension fund. New hires also require time to adjust to the role, learn the ropes, and reach full productivity. Outsourcing eliminates many of the costs associated with in-house hires. Additionally, outsourcing allows businesses to pay only for the services they need rather than paying an employee for full-time work.

Expertise and Accuracy

Besides cost savings, access to expertise is the most significant advantage of outsourced accounting. Accounting firms are equipped with seasoned professionals well-versed in financial management best practices and the latest regulatory changes. Outsourced accountants can provide you with advice on financial decision-making and ensure compliance with legal requirements, minimizing the risk of costly errors and penalties. They can also help you identify ways to operate more efficiently and cost-effectively. Services an outsourced accountant can provide include but aren’t limited to: strategic tax and financial planning, cash flow management, budgeting, forecasting, financial reporting, cost control, and guidance on maximizing profitability.

Continuity of Service

CFOs who leave their positions can be difficult to replace. While in-house CFOs or accountants can resign, fall ill, or go on vacation, leaving your restaurant with operational gaps, accounting firms have staff available consistently to ensure uninterrupted service.

Access to the Latest Technology

Another advantage that comes with outsourcing is access to up-to-date accounting technology. Most accounting firms employ the latest accounting software and tools, facilitating efficient, accurate, and timely financial reporting. Since outsourced accountants typically come equipped with their own software and technology, the restaurant is also spared the cost of purchasing these (often expensive) programs itself.

Focus on Your Priorities

By delegating financial management tasks to outsourced accountants, restaurant owners can concentrate on their primary purpose of running their business. When working with experienced and reliable experts, business owners can also be assured that all financial and regulatory requirements are being met.

Thinking of Outsourcing?

RBT CPAs offers outsourced accounting and CFO services to restaurants in the Hudson Valley and beyond. Our experienced professionals understand the unique factors and challenges impacting the restaurant industry. Whether you are looking to outsource your restaurant’s accounting functions or seeking guidance related to tax, accounting, or audit matters, RBT CPAs is here to support you. Get in touch with our experts today to find out how we can be Remarkably Better Together.

Financial Toolkit for Local Officials: Overview and Resources

The Office of the New York State Comptroller provides a “Financial Toolkit for Local Officials,” containing guidance and tools for use by local government and school district leaders in navigating financial processes. This article provides a brief overview of this guidance, along with links to some of the resources available.

Identifying Fiscal Stress

The first section of the OSC financial toolkit contains information to help officials determine whether their municipality is under financial stress. Performing regular financial condition analyses, reviewing financial condition audits from other local governments, and implementing OSC’s Fiscal Stress Monitoring System (FSMS) are all methods of evaluating your municipality’s financial health.

Budgeting

The financial toolkit next covers the subject of budgeting for local governments. OSC provides a guide entitled “Understanding the Budget Process,” which contains information on preparing, implementing, and monitoring your municipality’s budget. This guide outlines various components of the budget creation process for municipalities, including:

Estimating Expenditures: All departments must submit an estimate of operational costs for the upcoming fiscal year to be reviewed by the budget officer. In addition to department estimates, other expenditures that must be taken into consideration include debt service costs, employee salaries, employee benefits, fuel and energy costs, possible costs for real property tax certiorari refunds, and payments to employees for compensated absences or separation from service.
Establishing a Contingency Account: A contingency account contains appropriations for unforeseen circumstances.
Estimating Revenue: Estimating revenue typically requires a historical analysis of revenues over a 3–5-year period. Revenue estimates should be developed for the following categories when applicable: non-property taxes (i.e., sales and use taxes, utility gross receipts taxes, mortgage recording taxes), departmental income, intergovernmental charges, use of money and property (such as interest earnings on investments and income from rental property or equipment), fines and forfeitures, sale of property and compensation for loss, interfund revenues, state and federal aid, interfund transfers, and other miscellaneous revenues.
Estimating Available Fund Balance: Municipalities must properly estimate their year-end fund balance in order to use it as a funding source. It can be challenging for budget officers to calculate this value months in advance at budget time. The OSC guide provides general instructions for estimating year-end fund balance.
Determining Real Property Taxes: Local governments need to determine the amount of real property taxes necessary to balance the budget. The formula for calculating the tax levy can be found in the guide.

The toolkit also offers strategies for addressing a current budget deficit, such as modifying the current budget, using established reserve funds, using available surplus fund balance, and issuing short-term debt.

Cash Flow Management

Cash flow management involves policies and procedures that help to control the movement of cash in and out of the municipality. The OSC provides cash flow management best practices for local governments which can be found here, and include actively monitoring cash flow, accelerating the collection and deposit of receipts, optimizing the timing of disbursements, maximizing interest earnings, and adhering to state legal requirements for depositing and investing public funds.

Additional Guidance

Local officials can refer to the OSC Financial Toolkit for additional information and resources including publications, fact sheets, and webinars. Meanwhile, for all of your municipality’s accounting, advisory, tax, and audit needs, you can rely on RBT CPAs. Give us a call to find out how we can be Remarkably Better Together.

DOL Recordkeeping and Retention Requirements for Unions

Unions, like any other organization, are subject to financial recordkeeping requirements. The Labor-Management Reporting and Disclosure Act (LMRDA) provides specific guidelines for unions in regard to financial records and retention requirements, with the purpose of ensuring transparency and promoting democratic practices within labor organizations. According to the LMRDA, “unions must maintain financial records and other related records that clarify or verify any report filed with the Office of Labor-Management Standards (OLMS).” Your union’s treasurer and president—or the corresponding principal officers—are responsible for ensuring these recordkeeping requirements are met.

What records do you need to retain?

Per an OLMS Fact Sheet providing guidance on LMRDA recordkeeping requirements, examples of records that should be retained include, but are not limited to:

Receipts and disbursement journals
Cancelled checks and check stubs
Bank statements
Dues collection receipts
Employer checkoff statements
Per capita tax reports
Vendor invoices
Payroll records

In addition, unions should retain records that help explain or clarify financial transactions, including:

Credit card statements and itemized receipts for each credit card charge
Former members’ ledger cards
Union copies of bank deposit slips
Bank debit and credit memos
Vouchers for union expenditures
Internal union financial reports and statements
Minutes of all membership and executive board meetings
Accountants’ working papers used to prepare financial statements and reports filed with OLMS
Fixed assets inventory

Electronic records and software needed to complete, read, or file reports for the Office of Labor-Management Standards (OLMS) must also be retained. If you are not sure about whether to keep a record, you can contact the nearest OLM field office for advice.

How long do you need to retain records?

You must retain financial records (and other related records) for 5 years after a report is filed with the Office of Labor-Management Standards, during which time those records must be available for examination.

2025 Compliance Audit Finding Examples

OLMS conducts compliance audits of local unions under the Compliance Audit Program (CAP), following which closing letters are sent to the unions detailing any reporting or recordkeeping violations or deficiencies identified during the audit process. The closing letters for various unions audited thus far in 2025 can be viewed here. These letters reveal that, when it comes to OLMS recordkeeping requirements, details matter. Below are some examples of violations listed in these letters:

Missing receipts for meal expenses
Receipts for meal expenses were not itemized
Records of meal expenses did not include written explanations of union business conducted or the names and titles of people incurring the charges
Missing invoices for disbursements to vendors
Inadequate documentation for lost wage reimbursement payments to union officers and employees
Lack of documentation for reimbursed expenses and debit card expenses incurred by union officers
Inadequate documentation to support mileage reimbursements
Interest earned on savings accounts was not recorded in monthly financial books

As you can see, unions must accurately report financial activity and provide proper supporting documentation in order to avoid violations.

Contact Us

As you work to keep your union in compliance with recordkeeping requirements, you can count on RBT CPAs for all of your accounting, advisory, audit, and tax needs. Contact us today to learn how we can be Remarkably Better Together.

Are You Taking Advantage of the Short-Term Rental Tax Loophole?

Summer is upon us, which means that we are entering peak season for short-term rental (STR) investors. Millions of traveling families and friends will be flocking throughout the country for summer getaways, many booked at STR properties on digital platforms like Airbnb and Vrbo. STRs are popular year-round; however, depending on a property’s location and proximity to nearby attractions. According to Consumer Affairs, guest demand for STRs in the US has increased in recent years, surpassing pre-COVID levels, and is estimated to have an annual compound growth of 11% through 2033.

You may be considering jumping in on the short-term rental game or capitalizing on missed opportunities. If so, you should know the basics of the short-term rental tax loophole, a strategy that can significantly reduce your taxes. Let’s talk about it.

What is the short-term rental tax loophole?

The short-term rental tax loophole is a tax strategy allowing short-term rental property investors to classify short-term rental activities as non-passive, therefore enabling them to deduct these losses against their active income, such as W-2 and business income. Note that you do not need Real Estate Professional Status (REPS) to take advantage of this loophole. This means that an investor can have a day job and still legitimately qualify and benefit from this strategy, if done correctly.

What is considered a short-term rental?

A rental property is considered a “short-term rental” for tax purposes when:

The average period of customer use of the property is 7 days or less.
The average period of customer use of the property is 30 days or less, and you provide significant personal services for rentals.

How do you calculate the average customer stay?

Divide the total number of days in all rental periods by the number of rentals during the tax year.

How does this loophole reduce your taxes?

A well-executed STR tax strategy has two components:

Losses Treated as Non-Passive

STRs are exempt from the passive activity loss rules typically applied to rental properties. This is because, according to the IRS, STRs do not actually fall under the category of “rental activity” (see section entitled “Rental Activities”). Rental activities are normally subject to passive activity loss rules which dictate that passive losses can only be used to offset passive income, and cannot be used to reduce an individual’s active income for tax purposes. However, since STRs are not considered “rental activities” for tax purposes, they are not classified as passive.

This means that owners of STRs, if they meet certain material participation criteria below and other rules, can use STR losses to reduce their overall taxable income without the same limitations as typical rentals.

Accelerated Depreciation & Cost Segregation

Having RBT CPAs conduct a cost segregation study on your property can yield significant benefits by reclassifying certain building components that can either be deducted immediately via accelerated depreciation, such as bonus or Section 179, or over a shorter time frame of 5 or 15 years as compared to ratably over a much longer 39-year period. strategy. If you bought your property in a previous year, it’s not too late to take advantage of this method.

What is material participation?

Material participation requires active involvement in the operation of the STR. To qualify for the STR tax loophole, you must satisfy at least one of the material participation criteria outlined by the IRS. You will need to prove your participation using documentation such as time reports, logs, appointment books, calendars, or narrative summaries. Some examples of material participation include performing maintenance work on the rental property, managing bookings, and communicating with guests.

Have questions?

Need help navigating the short-term rental tax loophole? RBT CPAs has you covered. Our real estate industry accounting experts can help you determine how you qualify for this loophole, key considerations to get and stay qualified, and work with you to formulate a highly effective tax strategy that works for you. Give us a call today to learn more and to find out how we can be Remarkably Better Together.

Know Your Nexus Obligations: Tax Considerations for Mobile Veterinary Services

The mobile veterinary service industry has seen a surge in popularity in recent years, largely due to the convenience it offers clients and the flexibility it provides for veterinary professionals. This flexibility includes the ability for businesses to extend their services to clients outside of their home state. However, when operating in other states, mobile veterinary businesses need to keep certain tax considerations in mind. Let’s talk about some of the legal factors and requirements that may come into play when you do business across state lines—and how they can impact your tax obligations.

What is nexus?

Firstly, you’ll need to determine if your business is establishing nexus in another state. Nexus, in regard to taxation, refers to a level of connection between a business and a particular state that allows that state to impose tax obligations on the business. When you perform mobile veterinary services in a different state, nexus may be triggered, meaning you are subject to the tax laws of that state. The rules of nexus vary from state to state, so it’s important to know the specific rules for the states you are operating in.

What triggers nexus?

Keeping in mind that the rules of nexus vary by state, several circumstances can trigger nexus, including situations in which:

A business has a physical presence in the state, such as an office, store, or warehouse.
A business has employees in the state.
A business reaches a certain level of economic activity in the state, such as a specific sales revenue or number of transactions (thresholds for revenue and transactions vary by state).

Potential tax obligations when you create nexus

Depending on the state in which you are doing business, when nexus is created, you could be required to:

Register for sales tax and meet sales tax filing requirements for that state—this requires registering with the state’s tax authority, collecting sales tax on taxable sales to customers within the state, and remitting sales tax to the state.
Register for payroll taxes and meet payroll tax filing requirements for that state.
Meet business income or franchise tax filing requirements for that state.

Need guidance?

It’s important for mobile veterinary businesses to research and know the nexus rules for the states in which they provide services, and to maintain compliance with the necessary tax registration and filing requirements. Keeping track of differing nexus rules can be confusing, especially considering that states often update or change their criteria for determining nexus. The veterinary accounting professionals at RBT CPAs are here to help you understand nexus laws, determine whether you are creating nexus in another state, and ensure that you are fulfilling any necessary tax requirements. Let us take care of your accounting and compliance while you focus on taking care of your patients both in and out of your home state. Give us a call today to learn more—and find out how we can be Remarkably Better Together.