Accounting for Franchise – Things to keep in Mind

Looking for a career change, want to do something independently but the risk is too high. Well Franchise is the answer. The brand is set and the product is ready, in fact you are running your own business without actually starting a new company.

There are certain advantages of Franchises but there are certain risk associated also which the traditional business does not face. As a franchise owner one needs to have a general grasp on various aspects of business like marketing, management, or finance. One might not be an expert but needs basic understanding of how each of these work. There are certain things to keep in mind while going about your day to day operations.

Good Franchise accounting:- The most important is Good Franchise accounting as it will be beneficial in avoiding the pitfalls and imperative in running a healthy, profitable, sustainable franchise. A firm understanding of your balance sheet, income and expenses, and taxation is important.

The next crucial question is, to manage on your own or to call in the experts to manage the finances. There are some franchisees who choose to manage their own finances, while others prefer to leave accounting for franchises to the experts.
Franchise accountants have specialized training and deep experience with best practices for franchises. A good franchise accountant will help an owner keep proper records, produce useful reports, and prepare taxes as well as give valuable financial management advice. If not on full time basis, atleast hire someone on part-time basis to keep the accounts updated and file your returns.

Accounting softwares:-While we are on the topic of accounting, one should take the opportunity of the advance technology and progress in that area. Well what is being referred to here is the Accounting softwares which are there in the market. The days of spreadsheets are gone, it is so ancient. Now we have accounting programs designed to for average business owner that makes sending invoices, bifurcate and categorize expenses and just stay on top of the accounts. For examples programs like Freshbooks, Quick books, Inuit, Xero and Zoho which are affordable and easy to use.

Plastic money:- Trying going cashless ie use a debit or credit card or internet banking as much as possible as its easier to track the expenses as the transaction record is available from the bank or the card company. This reduces lot of headache during tax period. If there has been a transaction in cash, and you forget to record the same, you will end paying more in taxes if such instances occur quite a few times.

Tax planning and planners:- A business owner will have a perpetual headache when it comes to tax planning and as the tax time draws near. It is advisable to pass on this headache to the experts and focus on the other business activities. It is important to rope in the experts for developing tax planning strategies because as and when the company grows it is crucial to develop a beneficial strategy. There are number of tax consults or planners who are also experts for the franchises and who know the current policies, procedures of taxation.

Australia has the most dynamic and progressive business sector in the form of franchising. Among the cities Melbourne has numerous franchises and more are opening on day to day basis. With the influx of so many franchises, there are going to be experts related to the business. There are professional and registered tax planners who provide required consultation to the franchise owners. Hence depending upon the franchise business need, choose the consultant.

By keeping these certain tips in mind for franchise accounting, a franchise owner may have a little ease as far as accounting is concerned.

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