It is exciting to start a franchise as a business venture. But it entails its own risks, one of the biggest ones being when franchisees don’t understand the financial aspects surrounding the business. While an understanding of how to work with numbers helps, there’s a lot more to it than just that. Most franchisees struggle with accountancy terms and phrases, not to mention all of the complicated tax regulations. A one-time course in accounting doesn’t cut it as an effective solution either.
In order to have the best resources for creating a successful franchise, it’s essential to get franchise accountants who specializes in a franchise business. Accountants often specialize in certain industries; they are well aware of all of the ins and outs in regard to the financial side of the industry and can be trusted advisers in helping you and your franchisees achieve their goals. With their holistic view of the industry and expertise, they are more aware and can gauge financial situations better.
Franchise accountants with industry experience can save you time, money, and can help in making a clearer picture to manage finances efficiently and prevent you from making detrimental mistakes. They can help you manage cash flow as well as plan for growth, assess risk and much more. They can plan long term and offer strategic advice that can be invaluable, including things like budgeting and forecasting or startup advice for franchise.
How do you find the accountant who is most suited for your franchise? You can do it the hard way and speak to other businesses and colleagues to gather a list of candidates, or place an ad; schedule interviews and conduct extensive reference checks.
Finding franchise accountants who has the knowledge of your particular type of franchise can seem rather overwhelming as it can take a long time which you won’t often have.
Fortunately, you do have another option. Just by calling the consultants at ORB360, you’ll be matched with the most qualified accounts that are ideal for the needs of your type of franchise. This valuable service is offered to you without any cost, making sure you save time, and do not undergo the stress it takes to find the perfect candidate on your own.
Every business around the world is governed by certain laws. Some countries have laws specifically concerning franchising. For example, in Australia, the Franchising Code of Conduct, applies to both the franchisor and franchisee. Within the code, are a set of obligations, among which is a document detailing all the opportunities and risks of the business. These set of laws are required to be usually set up by your franchise accountant. There are numerous laws and obligations around franchise laws, the last thing any franchisor or franchise owner wants is to be paying hefty penalties and infringements.
Another common mistake committed by franchise owners is not taking into account the local laws of the territory. For example, what may be required of you in Australia may not be the case in New Zealand. Always be aware of all laws, from the global level to the local laws.
As a business model, the franchise model is very different from other businesses. This could be partly because of how your income isn’t always recognised as income. There are certain criteria to meet before you use it as you wish, but you need to know how to distinguish between what is your income and what isn’t. Your franchise accountant should know this, as this is part of their job description. If they fail to assess this, then you must ask them to undergo further training or you might face legal issues.
This is where franchise accounting evidently differentiates itself from the other specialisations in the field. Initiating, maintaining, and ending the franchise partnership all involve money in different ways. You must give your accountant access to as much data as you possibly can, and they must in turn always have the franchise’s development in mind. Only then would you be assured that at every point, they would act to improve your company and have reasons behind every action.
Even before the purchase, preparations should be made to ensure a smooth, long business term. The profitability and strengths of potential franchisees should be evaluated by your franchise accountants. They should guide you about prospects that are worth your time, money and energy. If you’re looking to become a franchisee, your accountant should thoroughly assess the strength of your choices to present you with the best option.
Your franchise accountant is responsible for keeping track right from the starting franchise fee, to facilitate a relationship with the other party, and to ensure your financial matters are of utmost importance. Franchisors expect a return of a percentage of their revenue from the franchisees. This amount depends on your franchise agreement, and like any flow of money, your accountant must monitor this carefully. Franchisors are sometimes expected to send aid to their franchisees depending on their agreement. This can include tools, trainers, supplies, or franchise software solutions.