Can you please clarify what do you mean by “cash wages are being paid”.
Is it that
a) wages are paid in cash and off the record, so there is under reporting of wages in the accountant’s financials, or
b) that cash wages being paid, that are recorded in the financials, but saves the owner from paying the extras (insurance, pension plan contributions etc) as mandated by the government?
I just want to make sure tthat I dont make blind assumptions and interpret things incorrectly.
Thank you very much for the flour and cheese bags numbers. That is tremendously helpful. Curious though, how much does a bag of flour and cheese weigh, according to your math?
Also with food cost being 30%, does that include food alone, or does it include wastage, paper/supplies etc.
Would you happen to have math for cogs (food, wastage, paper), preferably with a breakdown for each of the subitems, if possible?
Other points noted:
- Ask for 1 year of payroll records (941s) & state if applicable & 3 months of vendor invoices.
- Check their storage area
Thank you VERY much, RobT!