Cooking the Books?

[Alibi Ike]

Not if you take credit cards. We just got a notice from AmEx that they will be sending an 'income' statement to the IRS every year with the dollar amounts we processed and what we paid for the privilege. MC and Visa will be doing the same just not as fast.
If your SSN or EI is wrong with AmEx or the IRS, woe unto you.

 

[Breakfast Diva]

I don't see a problem with this. Even if someone were "cooking the books", they would be very foolish to not declair income that went directly into a bank account!

 

[One Day]

Yeah.....not smart
Only reason for cooking books is when selling or possibly applying for a loan...
You'd have to provide the previous years tax return.......#'s don't jive.........huge red flag.

 

[Don Draper]

The flip side of this new legislation (which is actually part of the new healthcare bill) is that WE (small businesses) will now have to 1099 everyone to whom we pay more than $600 per year, even corporations. Just what we needed, more paperwork!
Do be sure to check with your cc processor that the TIN they have matches up with your business name and address, if it doesn't they will start withholding 28% of your charges.

 

[Joey Camb]

A neighbour of mine is selling and they are making they net profts look better buy getting rid of staff and doing all the work for 12 bedrooms plus garden themselves. How they are managing it all I don't know but it saves you about $2000 a month and if they sell to someone with no exeperience who they say oh we easily do blah blah each day they might be fooled. If you do all the book keeping and house keeping and reservations yourself you will have no time for anything else. (ie a life or marketing) It is down as an easily managed guest house I said pull the other one it is shorter! It is a really nice place. good business and excellent location but none of us will disagree it will be easily managed LOL

 

[Breakfast Diva]

A neighbour of mine is selling and they are making they net profts look better buy getting rid of staff and doing all the work for 12 bedrooms plus garden themselves. How they are managing it all I don't know but it saves you about $2000 a month and if they sell to someone with no exeperience who they say oh we easily do blah blah each day they might be fooled. If you do all the book keeping and house keeping and reservations yourself you will have no time for anything else. (ie a life or marketing) It is down as an easily managed guest house I said pull the other one it is shorter! It is a really nice place. good business and excellent location but none of us will disagree it will be easily managed LOL.

Let this be a warning to aspiring innkeepers out there. QUESTION EVERYTHING when you're looking at an inn's numbers. I don't care how busy an inn is, if you have 12 rooms, you can't do it by yourself.

 

[Alibi Ike]

The flip side of this new legislation (which is actually part of the new healthcare bill) is that WE (small businesses) will now have to 1099 everyone to whom we pay more than $600 per year, even corporations. Just what we needed, more paperwork!
Do be sure to check with your cc processor that the TIN they have matches up with your business name and address, if it doesn't they will start withholding 28% of your charges..

Yeah, that whole aspect of the 1099 is odd. We've done that in the past when we've had people work for us, but send a 1099 to the hardware store because we bought $620 in plumbing supplies? And how about biz guests who stay here? Do they have to send us a 1099 for their stay? Glad I'm not the accountant.

 

[Joey Camb]

I remember when we bought here the previous owers who operated 8 bedrooms we like oh yes we do breakfast 8 to 9 then have all the rooms cleaned by 12. Lucily we wern't so daft and just said yes that's nice and hired a cleaner. People are just soo green!

 

[Tom]

A friend was buying an inn a while back. Owner said there was a set of books for the taxes and a set of books showing the real profit ... and the inn price was based on the latter. My friend wisely said, no. Don't do business with a cheat.

 

[Breakfast Diva]

We acccept a check for the balance of the stay once they get here. Our policy states "we prefer cash or personal checks, but happily accept visa, mastercard and discover". It's amazing how often when someone writes their check they ask if we want them to make it out to us personally instead of the business. I always tell them make it out to the business. They must think we're wanting to have them pay under the table, but we're just saving on bank fees. EVERYTHING hits the books here.

 

[gillumhouse]

We acccept a check for the balance of the stay once they get here. Our policy states "we prefer cash or personal checks, but happily accept visa, mastercard and discover". It's amazing how often when someone writes their check they ask if we want them to make it out to us personally instead of the business. I always tell them make it out to the business. They must think we're wanting to have them pay under the table, but we're just saving on bank fees. EVERYTHING hits the books here..

Same here. I am proud of what this little B & B brings in! And since I do not make enough to make wearing a striped jumpsuit worthwhile, I ain't agonna try to cheat Uncle. He could chew me up and spit me out without even noticing me.
I taught my kids early on - some people can get away with everything and anything - however WE are the variety that gets caught spitting on the sidewalk and do not forget it!

 

[Joey Camb]

Plus as well if you are thinking of the future and selling you need the revenue stream and showing over a few years to get the best price. Or if you want to borrow money to expand etc so you cut your own throat.

 

[Don Draper]

It take me SO long to do my regular bookkeeping, I can't even imagine how long it would take to have a "fake" set too! No thanks.
On the bank charge side, I used to be happy when folks paid cash or by check to save the processing fee, but so few folks do that now that it's actually a lot more work to get the deposit together and take it to the bank. Our fees are low enough that I'm happy to swipe the card and have it go right in versus all the running around.

 

[wendydk]

It take me SO long to do my regular bookkeeping, I can't even imagine how long it would take to have a "fake" set too! No thanks.
On the bank charge side, I used to be happy when folks paid cash or by check to save the processing fee, but so few folks do that now that it's actually a lot more work to get the deposit together and take it to the bank. Our fees are low enough that I'm happy to swipe the card and have it go right in versus all the running around..

I used to be happy when folks paid cash or by check to save the processing fee, but so few folks do that now that it's actually a lot more work to get the deposit together and take it to the bank.

My opinion exactly, especially since our bank was 8 miles away.

 

[Joey Camb]

I also feel with card I am not runnng to the bank and worrying about large amounts of cash or taking ages for a cheque to clear. Plus in the UK it is very rare now for people to carry cash. Also again we deal with a lot of business people both sellers and buyers and they have to use credit cards for the paper trail or they have a company one so why spend their own money.

 

[gillumhouse]

It take me SO long to do my regular bookkeeping, I can't even imagine how long it would take to have a "fake" set too! No thanks.
On the bank charge side, I used to be happy when folks paid cash or by check to save the processing fee, but so few folks do that now that it's actually a lot more work to get the deposit together and take it to the bank. Our fees are low enough that I'm happy to swipe the card and have it go right in versus all the running around..

One of the lovely things about the horse people is they usually pay with cash or check. The bank with the B & B account is about 10 miles from me (gave me better rates than the 2 banks in town) and we always combine the trip to the bank with other things we have to do. Unless it is a "gotta cover that check in today's mail" run, we try to multi-task with any trip to the bank or the veggie store or whatever.

 

[gillumhouse]

Sigh! Wishful thinking. We were barely able to go help another innkeeper in my high school town Sunday. Her Dad died and we stayed at the house for the food drop-offs and to have things ready for the family between visiting hours. Then I cleaned up the dishes before we stopped in at the funeral home on the way home.
Fortunately I flipped the room totally before we left (we FINALLY were able to make connections with a man who wants DH to do a painting) because I did not want to "rush" DH. We were on the Interstate about 10 minutes ahead of the guests when they made their escort call - so we just went to the exit and waited for them!
December is few guests - but sooooo much other obligations. Concerts Dec 4 & 12 - I get to blow my brains out (except the sections where the brain takes over and I stop blowing!).

 

[MTLLodge]

Joey. . . looks like alot of fun!

 

[JBloggs]

It take me SO long to do my regular bookkeeping, I can't even imagine how long it would take to have a "fake" set too! No thanks.
On the bank charge side, I used to be happy when folks paid cash or by check to save the processing fee, but so few folks do that now that it's actually a lot more work to get the deposit together and take it to the bank. Our fees are low enough that I'm happy to swipe the card and have it go right in versus all the running around..

One of the lovely things about the horse people is they usually pay with cash or check. The bank with the B & B account is about 10 miles from me (gave me better rates than the 2 banks in town) and we always combine the trip to the bank with other things we have to do. Unless it is a "gotta cover that check in today's mail" run, we try to multi-task with any trip to the bank or the veggie store or whatever.
.

One of the lovely things about the horse people is they usually pay with cash or check.