Restaurant Corporation Accounting Problems
Problems:
The file transferred to us from a well-known restaurant bookkeeping service. The client wasn’t sure whether they were set up as a C Corp or S Corp and there was no documentation or other evidence of whether the 1st draft return had been filed. The balance sheet was missing millions in shareholder loans, tenant improvements, and other assets and liabilities. No 1099s had been filed and no detail available to do so.
Outcome:
We cleaned up and created books for the 3-year life of the restaurant. We also worked with a tax preparer to file all returns. Clean records were provided for legal disputes and upon closure, owners were able to write off their millions in loans and investments. Detail was tracked down and 1099s were properly filed.