Are you a franchisee? Which online accounting package is right for you?
3rd June 2016
Franchisors have different approaches with regard to franchisees reporting financial information about the ongoing performance of the franchisee’s business. In a large number of cases there are tight monthly reporting requirements with the provision of management accounts.
Whilst monthly management accounts are a good management tool for businesses it is fair to say that many businesses do not routinely produce them and, if in a different business set up the franchisee was operating a standalone business, they may be one of those many businesses that do not have formal management accounts prepared.
Given the requirement of many franchisors to have this information submitted it is important for the franchisee to consider the type of accounting package used for bookkeeping and management accounts purposes.
There are now various online accounting packages, hosted in the cloud such as Xero, Quickbooks online and Kashflow amongst others. The clever software allows the systems to link to bank accounts and reconcile bank payments and recognise repeated transactions such as bank receipts speeding up the processing of this information. Real-time information is available to both business owners and accountants, enabling better planning, management and the identification of problems that can then be resolved far more seamlessly and quickly than would potentially be the case with traditional desk- top software packages.
Franchisees may think of bookkeeping as just a processing function but considering how this work is undertaken can free up time and resource within the business and enable the franchisee’s accountant to provide added value advice with regard to key performances indicators and support in other areas rather than merely concentrating on processing data.
For more information on any of the matters raised in this blog, please contact us on 01273 701200 or email firstname.lastname@example.org
Author: Andrew Blake, Accountant & member of the Franchise team
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