Help Yourself by Recommending a Good Bookkeeper to Your Franchisees
You have lots of reasons to make sure your Franchisees select a good bookkeeping service:
- Gain easy access top line data like sales, cost of goods sold, gross margins
- Receive consistent data within Charts of Accounts to simplify comparing locations
- Get on-time, accurate marketing fees, royalties and management fees
- Enjoy correct record-keeping so you earn the right amounts for volume-based fees
- Quickly spot any performance problems in term of income and expenses
Most Franchisors allow Franchisees to use any bookkeeper they want, as long as they get their reports in on time. But timely, accurate bookkeeping is essential for business success, and many Franchisees appreciate some guidance in terms of finding a bookkeeper they can trust.
Here are some tips if you want to make sure your Franchisees take bookkeeping seriously:
Compile a list of recommended services with experience working with franchises. Professional bookkeeping services like BookWerksTM offering both local and virtual bookkeeping will allow you to suggest all your franchises use the same bookkeeper, no matter where they are located, which will help standardize reports.
Ask other local Franchisors in non-competing business who they use, and why. Ask any bookkeeping companies you are considering about their experience with franchises in your industry.
Offer training and support on best bookkeeping practices for franchises. These can help Franchisees understand the value of proper financial record-keeping to their success, and learn how to effectively manage their finances.
Include practices such as:
- Keep personal and business finances completely separate
- Establish internal controls
- Decide whether to use cash-basis or accrual accounting
- Use accounting software to track expenses
- Track employee time to understand profitability
- Optimize your Chart of Accounts
- Diligently manage accounts payable and receivable
- Download banking transactions daily and reconcile bank statements regularly
- Evaluate financial data monthly
- Plan for tax time year-round
- Keep clean and thorough records
Set up partnerships with better Cincinnati bookkeeping services and negotiate preferred rates or packages for your Franchisees.
Offer resources and tools such as templates, guides and software to help Franchisees streamline their record-keeping. Show them a sample Chart of Accounts and Expense Tracking.
Offer consultations and support. Regular check-ins and financial reviews can go a long way toward building strong relationships and troubleshooting any challenges or concerns.
Facilitate communication and networking among Franchisees to encourage the sharing of best practices and recommendations for good bookkeepers. You could host online forums, Franchisee conferences or regional meetings.
Implement quality control measures. These can help ensure Franchisees maintain accurate and compliant financial records. You might include periodic audits, financial reporting requirements and guidelines for bookkeeping standards.
Like all businesses, franchises need to track overhead costs, profits, revenue, raw material costs, utility costs, rent, salaries and employee scheduling. But there are additional costs which need to be recorded — initial fees, amortization fees, marketing fees and royalties – and additional reporting requirements.
Bookkeeping and accounting services for franchises should evolve around a proven business model that includes a healthy cash flow, writing off the onetime franchise fees, and an accounting system that includes the required reports.
Choosing a bookkeeper with franchise experience will make it easy for your Franchisees to adapt to the special bookkeeping needs of franchises. Particularly if they have owned business before, they may not realize that franchise bookkeeping is different.
Be proactive in helping your Franchisees find expert franchise bookkeeping help, and you will contribute to the overall success of your network.