A franchise can only flourish if the franchisees are doing well financially. Confiance is here to provide franchise accounting services by evaluating the finances of the franchisees and providing a game plan to efficiently help them manage funds, which will in turn maximize profits in the long run.
Here is how franchise accounting works to benefit the franchisor as well as the franchisees:
- It doesn’t only provide accurate data related to incomes and expenditures but also makes it easier for the franchisor to monitor opportunities or problems by keeping an eye on things like sales growth, margin trends and return on investments in general.
- It gives the franchisor a clear picture of how much it will cost to open a franchise from start to finish.
- Building a database will in turn help new franchisees to devise strategic business plan that are more likely to increase their profits.
- Recording all financial successes will give you a better chance of obtaining bank loans for expansion.
- It allows franchisors to step in and take charge when franchisees seem to be going off the rails so to speak. For instance, if they are behind on payments to vendors or not paying taxes the franchisor can see the signs and rectify them before any real damage is done.
In order for us to be able to be the most efficient in our accounting strategies, it helps if franchisors can:
- Insist on a uniform accounts chart for all franchisees to make comparisons and analysis easier for the accounting department.
- Mandate a standard financial statement that is uniform to all franchisees.
- Set a pre-decided and non negotiable date for turning in reports on a weekly, monthly and annual basis.
- Establish universal software used by all franchisees to record financial activities.
- Maintain a shared database of financial recordings to all franchisors and franchisees have access to information across the chain.
- Insist that franchisees can only obtain raw materials and avail services from authorized vendors.
- Decide on some indicators or financial performance so that the franchisor and franchisees can both recognize when there is chance to improve.
Confiance can provide a new design for a comprehensive accounting chart made especially for the needs of a franchisor. We pride ourselves in being able to customize and adapt our strategies to each client depending on their needs and financial objectives.