A franchise bookkeeping service involves accounting for the income and expenses of your store or multi locations, as well as other information such as payroll, taxes, asset depreciation, loan payments and investments. Business transactions should be recorded daily into an accounting system for proper bookkeeping. Each transaction must involve a sales invoice or receipt that details the transaction so that an audit trail can exist for auditing purposes. This data can also be used to generate financial reports you may be required to submit to your franchisor.
Although it may sound like a lot to have on your plate, your franchisor should provide you with accounting direction, and some may offer a franchise bookkeeping service as well. For example, your franchisor might sell you specific software and hardware you’re required to use for tracking records. Point-of-sale systems provided at franchise restaurants and stores automatically record transactions when they’re processed, making it easier for the store owner.
Hiring a bookkeeping firm to do your franchise bookkeeping is a great way to ensure your bookkeeping accuracy and compliance. To avoid penalties, accuracy important, but so is punctuality. Ensure you’re aware of deadlines for financial reports you’re required to submit to your franchisor and that you submit them on time. You should also be in-compliance with local and federal tax laws and deadlines.
Proper bookkeeping for your store not only ensures you avoid penalties, but also can help you better understand your business’ performance in useful ways for example, knowing exactly what is selling and what is not selling per location every month allows you to make better inventory decisions per location. Always staying on top of your financials increases the probability of success but with the daily tasks that arise and the issues that come with being a business owner there is not always enough time in the day to get the right information you need. With a bookkeeping firm like BooXkeeping you will always have exactly what you need when you need it!
For more information on how you can get a quote from one of our Chief BooXkeeping Officers click here!