How Outsourced Bookkeeping Helps Franchisors Get Ahead

After working with franchisors across the country for many years, we here at BookWerks^TM have been able to show our clients that outsourced professional bookkeeping services are the most cost-efficient approach to financial recordkeeping.

BookWerks^TM is an affordable bookkeeping firm that offers discounted, flat monthly fees. It’s why we are the trusted option for Franchisors and their Franchisees.

Applying cloud-based SaaS technology, we electronically scan, digitally read and categorize vendor invoices, and link directly with Management or POS systems, payroll, credit card and bank accounts, eliminating hours of data entry (and errors) by the Franchisee.

Beyond Saving Money: Why Every Franchisor Needs a Bookkeeper

There are many other advantages to outsourcing your bookkeeping, both for you and your franchisees:

• If each franchisee uses the same bookkeeping service and follows the same procedures, the data you receive on each location will be consistent and on time. You’ll stay up-to-the minute on how each franchisee is doing so that you can make changes before small worries become big problems.
• You’ll build trust with franchisees through transparency. They know every owner is being treated the same and will be able to see exactly how they are doing against the goals you have set for them.
• At the same time, you’ll ensure franchisee compliance with financial disclosure requirements that your bookkeeper will track and manage for each location.
• If you share financial reporting between franchisees, they can support each other, collaborate and learn from their peers for the good of their location(s) and the whole company.

Standardizing Each Location’s Bookkeeping

We work with the franchisor to establish a common chart of accounts so that standard accounting practices are being used across all locations. This means that if a franchisor adds a new franchisee to their network, we can partner with them early on to ensure their accounting practices match those of every other location. This ensures consistency in reporting, makes it easier to compare performance and cuts the risk of errors.

We also help you structure your franchisees’ books, making sure every franchisee:

1. Knows and follows your SOPs.
2. Arranges their chart of accounts in your preferred format.
3. Enables the automatic downloading of expenses and income from bank accounts, credit cards, loans, and other sources.
4. Reports royalties properly and truthfully.
5. Meets regulatory requirements and franchise agreements, which reduces the risk of legal issues.

Providing the Support Franchisees Need to Succeed

We assist our client’s franchisees in understanding and managing various financial reports, including financial statements, budgets and cash flows. This support can enhance the overall financial health of your franchisees.

We also provide basic monthly financial reports that are crucial in helping franchisees run their business. Every month, we provide a robust Income Statement and Balance Sheet that helps franchisees see at a glance how well their location is doing. With accurate and up-to-date financial records, monitoring performance and making informed business decisions is easy.

We also answer any questions they have promptly, and our work frees up their time to focus on other key activities, like growth and customer service.

Support for Franchisors and Franchisees at Tax Time

BookWerks^TM provides every franchisee with timely statements that will help them prepare for tax time.  Allowing us to handle your books ahead of the tax season rush reduces stress and helps accountants do their jobs efficiently.

And, should a franchisee be audited, they can breathe easy knowing their financial records are well-organized and comply with auditing standards.

Helping Franchisors Determine when to Expand

Our numbers don’t lie. They show you whether and where it makes sense to expand. When you decide the time is right, we can provide financial models for your growth strategy.

The Bottom Line

Franchise bookkeeping services help everyone involved. The whole system becomes more transparent, efficient, consistent and compliant. Looking to make your life easier? Contact us to discuss our franchise bookkeeping services.