The Complete Guide to Bookkeeping Services for Franchises

Many franchisors require regular reports that include sales data, expense breakdowns, and financial statements. These reports help the franchisor understand each location’s performance and identify trends across the franchise network. Make it a habit to generate these reports on time to maintain good standing with your franchisor.

We provide valuable financial analysis and insights to help you make informed decisions, optimize operations, and improve profitability. When you hire Remote Quality Bookkeeping, you can let go of that stress and pass the torch to a team that knows the ins and outs of bookkeeping. Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP double entry accounting defined and explained was the first of the Big Four firms to organize itself along the same industry lines as clients. KPMG has market-leading alliances with many of the world’s leading software and services vendors.

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Digitized receipts become part of a searchable database, enabling quick retrieval of specific documents when needed. Franchisers who don’t have a Gmail account can forward email receipts to their Shoeboxed account for automatic processing and categorization. The Shoeboxed Gmail plugin automatically detects and extracts receipts from your inbox and turns them into organized expense records. It might be obvious how to measure KPIs such as customer satisfaction, employee productivity or cost of goods sold. If you got the KPIs from your franchisor, they should also have systems for measuring them. If your franchisor can’t tell internal controls accounting audits consulting and fraud prevention you the KPIs to use, ask other franchisees in the network, or consult with a franchise accountant.

Though franchise accounting is similar to accounting for other types of businesses, it includes a few extra steps. As a client of our bookkeeping company, your expenses are automatically recorded in the cloud and available to you at all times. Again, this is part of your franchise agreement and must be followed to the letter to stay on the good side of your brand. Attend to royalties religiously to make sure your numbers are accurate and you don’t get behind.

Key Elements of Franchise Bookkeeping

The franchisor will have seen some franchisees succeed and others fail – and they’ll be able to share the lessons with you. That will give you a short list of key performance indicators (KPIs) to focus on when managing the business, which should make your life easier. It isn’t realistic to expect that you’ll be able to do the same without any training. Of course, you’ll also need to keep track of the revenue your business is making so that you can understand your cash flow situation and how much profit you’re making. Payroll can be a significant expense for franchises, especially in industries like fast food or retail.

As mentioned earlier, some accountants have specific knowledge and expertise in franchise accounting, so they can ensure that you get your business started on the right foot. What’s more, you can even hire accountants who have experience with your brand in particular, which can prove invaluable. A CPA can do things an accountant can’t, such as send your tax returns to the IRS. Understanding CPA compensation and benefits can help you decide whether hiring a CPA is the right option. In addition to income tax, you may have sales tax, payroll tax, and franchise-specific taxes.

Don’t Do One Offs If You Want to Grow Faster & More Profitably

Or call us—here at BookWerksTM, we are always happy to help new franchisees. Once the data is categorized, Shoeboxed generates detailed expense reports, providing insights into spending patterns and helping with financial planning and analysis. They need to track these monthly fees until they are paid off. Franchising is an excellent option for business owners and entrepreneurs. Xero does not provide accounting, tax, business or legal advice.

Our virtual bookkeeping service works with many franchises, helping franchisors and franchisees work together for precise financial recordkeeping. When we are hired by a brand, we become part of your team to streamline bookkeeping. Given the recurring franchise fees and often high staff costs, a dip in sales can be felt quickly.

1. Trust BooXkeeping to be your reliable co-captain, offering you expert guidance and effective tools to navigate successfully.
2. In franchise accounting, the franchisee owns an individual franchise location.
3. If your franchise spans a large region, you may have additional work related to reporting sales and income taxes for multiple states.
4. You can also consult with a certified partner, like BooXkeeping, to decide which software will work best.
5. Franchisees can get started with accounting on their own, but hiring a professional accountant is often a good idea.

Without a reliable bookkeeper, you may not have the time or experience to track your what does it mean to be hired as a contractor franchise revenue and expenses. Poor maintenance your of accounts can lead to cash flow issues and staffing problems due to off-base sales reports. Remote Quality Bookkeeping can do more than just balance the books — we also offer payroll services for franchises. Hand your entire payroll process over to us and relax, knowing you’ll never have to stress again about your employees being paid accurately and on time. As you embark on your franchising journey, remember that bookkeeping is the compass that keeps your venture on the right financial course.