The question of how to elect a new tax year when switching from the traditional 12 month calendar year to a 13 four week period format. More and more restaurants are switching to this way of keeping their books as they see the advantages for measuring thier performance evenly across the year. Restuarant365 makes this very easy to do and has built in tools to help make the accruals for invoices you receive 12 times a year into the proper 13 periods (people do this with memorized transactions in QuickBooks.)
At any rate, the form you will need to submit is IRS Form 1128 Application to Adopt, Change, or Retain a Tax Year. Below is a link to a good page describing how to use it and when you should use the form. It is a common misconception that if your are an S-Corp, your year end must be on December 31. Here is a link to the page https://www.irs.gov/businesses/small/article/0,,id=98673,00.html.
I will write more about the advantages of using a 13 four week period in another post. It’s a no brainer if you really want to start seeing your business clearly. I mean, what does the fact that Julius Ceasar wanted 31 days in the month named for him (July) so he could appear more important have anything to do with the way you measure the performance of your restaurant business in 2012?
Morgan Harris | C0-founder | Restaurant365