Meals and Entertainment
Opportunity: With tightened cash flows during these new and challenging economic times, taking a closer look at a company’s meals and entertainment expenses subjected to the 50% deduction “haircut” can save tax dollars and lower a company’s effective tax rate.
Implementation: Meals and Entertainment can be reviewed annually or for all open years under statute in a single sample. The process begins with an electronic data dump of your meals and entertainment account(s). After the Client data is received and cleaned up, it gets analyzed and stratified to obtain a “sample pull list” for ThreeFive auditors to perform a field audit review. The A/P review is performed by a team of ThreeFive specialists to capture the line by line data items required to support the deduction and arrive at the final number.
Result: Upon completion of a meals and entertainment study, our clients will benefit from tax savings and a lower effective tax rate. Our fee is based on those tax savings.