If you plan to start your own business, you would be in good company if you own a franchise. And the best part is, you don’t have to start it from scratch. However, being a franchise owner, you need to learn a lot about accounting franchise, especially if you are looking for one.
What Is Franchise Accounting?
As a franchise owner in Australia, you would be in good company for a survey by IBIS World shows that the franchise market size is $165bn with 97,442 businesses. Although your franchise location runs under your ownership, you are bound to adhere to the franchisor’s guidelines.
Franchise accounting helps the owner lead the business in a healthy and sustainable way, securing enough profits. It is true that some franchisees choose to handle their accounts internally or hire a professional accountant. Franchise accounting, however, comes with the following benefits:
- Complete management of reporting and analysis
- Planning tax and structuring
- Preparing and filing annual tax returns
- End-to-end assistance with tax management and business cash flow every month
- Ongoing coaching and support for your accounting, business, and tax
- It acts as your ASIC and ATO agent
Things to Consider Before Selecting a Franchise Accounting
Just as you probe the essential factors and assess the amount of risk before investing in a franchise, similarly, you should be cautious in selecting the right accounting franchise to avoid significant financial consequences. Therefore, these are the things to consider before partnering with a franchise accounting firm:
You can never rush into hiring one without adequate market research. Gather as much information as you can about the firm that includes:
- the current market stand of the agency
- how long they have been in this line of business
- who belong to their present client base
- how impressive are their market rating and the reviews
You can also contact their past or existing customers to get a more candid and detailed evaluation.
Understand Your Budget
The second in line consideration has to be the budget. Every business is driven by its financials. From store maintenance to staff salary, your budget calculates every step of your trade. Whether you come across the top franchise accounting in Australia, if your revenue graph does not support the firm’s fee structure, you have to look for an alternative.
Remember, as a franchisee, your accounts are the responsibility of you and your franchisor. So what you can do is:
- ask for a yearly estimate
- be familiar with their hourly rates, which can vary from firm to firm
- confirm there are no extra costs
- compare and then consider
Have an Open Communication
Prior to engaging a franchise accounting firm, it is important to have an open discussion. Share your problem areas or the areas you need maximum assistance. Pay heed to the firm’s approach towards solving the issue. Also, ask whether they would be dedicating a personalised accountant to manage your business account.
An open dialogue always helps confirm if the firm is a good fit for your type of business and whether this association would work long-term.
Learn About Their Educational Background
Whether you are a national or international franchise holder, asking or verifying your accountant’s educational background is within your rights. Even if you are dealing with the most eminent firm, don’t forget to crosscheck the professional’s credentials responsible for handling your account.
In case you are ever dissatisfied with the performance of the accounting franchise, don’t hesitate to raise questions. Go ahead and switch to a better agency for your business, and stature demands nothing less than 100% efficiency.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.