LFTL: What Harmony Does
As the calendar turns over from 2022 to 2023 we want to take a minute to remind you of the services performed by Harmony Group so any clients who are reading this can better understand our services. Please don’t hesitate to reach out and take advantage of these services or ask questions about anything you don’t understand or want to learn more about.
Our guiding principle in everything we do is to work in partnership with our clients. I started Harmony to give small and medium sized businesses the same accounting and financial resources that larger companies enjoy. Our outputs are only as good as our inputs – clear communication and good information flow is essential in making sure your financial house is in the best shape possible.
Matt Hetrick, CPA
President and founder of Harmony Group Inc.
What Harmony Does
December 2022
In-House Controller
Keeping and maintaining your books to Harmony standards is the core of our services. All financial discussions and optimization opportunities stem from transactions being entered accurately in a timely fashion.
We start the process early for some clients that join us in the pre-opening stages by setting up their starting trade credit/banking applications and filing out and submitting tax withholding paperwork for the necessary jurisdictions. For clients who have this information, we confirm that everything is done correctly.
Other controller processes are done on a weekly and/or monthly basis depending on the service plan. These processes handle all transactions that flow through the business and include: (1) reconciling banking, credit card, third party, payroll, house banks, and cash accounts; (2) accounts payable management including invoice entry, invoice payments, and managing the vendor relationship; (3) payroll entry and reconciliations, quarterly tip reports, worker’s compensation insurance audits and (4) sales tax reporting and payment. This is just a partial list of what we do – we want our restaurateurs to know their back office functions are covered so they can focus on hospitality.
These recorded transactions form the basis of the reports we deliver. Weekly reports given to clients include a Cash Flow Forecast for effective cash management and 5 Week Trend Sheets to allow for timely management of key cost centers.
Financial reports are delivered on a monthly basis and include a Profit & Loss Statement and monthly Balance Sheet delivered in a format that is designed for clarity and understanding.
Assurance
Having a reliable financial picture starts with entering the transactions in a timely manner and delivering those reports. Equally important is our assurance process – ensuring the numbers and recorded transactions can be relied upon to make the decisions that drive business success.
Our assurance work happens on an on-going basis as well as through detailed review processes. All of our weekly reports and systems have robust internal controls designed to spot errors or discrepancies which are resolved on a weekly basis. Every clients’ financials also undergo a regular internal “Board Review” where senior management reviews over 60+ aspects of the clients data to find discrepancies, improve processes and unearth key areas of improvement. Finally, at year-end we scrutinize every transaction in our workpaper process to ensure that everything has been properly completed, coded and ready to file taxes.
Advisory
Beyond delivering accounting services, something we take pride in is our industry expertise and our ability to advise clients who desire these services. For some clients we are more than an accounting team – we’re an outsourced finance team partnering in setting the direction of your business and working towards profitability.
If accounting is looking at the data to understand the business’s history, finance is studying the numbers to understand the future. To make that a successful future, our expertise is in advising around decisions with an eye towards improving financial metrics and profitability: (1) budgeting, benchmarking, and tracking those budgets against actual spends; (2) COGS/Labor training, modeling, and seminars for effective cost management; (3) consolidated multi-unit financial analysis; (4) start-up consulting; and (5) providing a perspective grounded in the financials for Strategic and Operations Review processes.
All Harmony Staff Accountants have industry expertise to aid in these advisory functions. We continually invest in developing that capability so our staff can be ready to answer client questions and best advise you in collaboration with our senior team.
Management
You know how hard it is to find and develop great staff for your kitchens – let alone having to worry about managing a back office. At Harmony we view our staff as our greatest asset and manage and develop our Staff Accountants as vigorously as you develop your staff. We go beyond managing the day-to-day operations and invest in their development so they are on top of emerging issues and best equipped to serve our clients.
Additionally, we have coverage teams and back-ups so if something goes wrong you don’t need to worry about replacing and or finding coverage to make sure your financials are up to date.
Many clients who are reading this might be saying – I don’t need an advertisement, I know what Harmony has to offer.
We wrote this article to make sure that you are getting the most out of Harmony’s offerings. If you see a service that would be beneficial to your business please don’t hesitate to reach out to your Harmony advisor. And above all, more communication is never bad. If you’re not a client yet and your business could benefit from these services please reach out to admin@harmonycpa.com.
We’re grateful for your partnership this year and look forward to servicing you in the New Year.
Last Bites
December 2022
Restaurant Revitalization Tax Credit Act Introduced
Some of the senators behind the Restaurant Revitalization Fund introduced the Restaurant Revitalization Tax Credit Act – which creates a payroll tax of credit of up to $25,000 per quarter in 2023 and is fully refundable for smaller employers. Eligibility would be restricted to restaurants that didn’t receive aid from the Restaurant Revitalization Fund and that pass the gross receipt reduction requirements. The Independent Restaurant Coalition is enthusiastically backing the measure, calling it a pivotal moment for the industry by pointing out that COVID losses far exceeded dedicated RRF Relief. Sen. Murray expressed a desire to replenish the fund and views this bill as a stop-gap measure. However, no similar bill has been introduced in the House and the change in party control will affect the chances of all future legislation. Nonetheless, we’re tracking all these developments and will keep you apprised.
Mall Ritzs
What movie starred Ben Affleck, Joey Lauren Adams, Ben Affleck, and Claire Forlani? If you answered Mallrats – well, we like the cut of your jib, sailor. As the 90s come screaming back dominating fashion trends, it seems the mall has become cool again, or at least a better place to eat. Suburban diners are probably never going back to the office full time as that pandemic “trend” gained permanence, but their tastes haven’t changed. More upscale and ambitious eateries are seeing malls and mixed-use shopping centers as promising places to cater to the sophisticated diners who are looking to rock the suburbs. Our advice is to make sure any projects have their own exterior facing entrance and visibility.
It's December - Which Means Predictions!
The end of the year comes the Holidays, yearly wrap ups and predictions. Here’s 22 Fast Food Trends to Watch, New Food Trends for 2023, NRA What’s Hot 2023, Food Trends from Delish, a review of Tik Tok Food Trends - the list could go on and on. The purpose of predictions is less prophecy and more spurring reflection and conversation. In that spirit, email us admin@harmonycpa.com with your Top 3 Trends and we’ll include them in our January missive with our own predictions.