Financial advice
Figure it out
How do you solve a problem like accountancy for a franchise network? Autosum Accounts has the answer
The franchise industry, by nature of its business platform, suggests that it should have more adequate financial controls. The industry is complex covering many different products and services, and in turn, each group requires flexible accountancy systems to match the needs of both the franchisor and franchisee, particularly when it comes to regular management accounts.
During the establishment of the final contracts between the franchisor and the franchisee a duty of care is observed by the franchisor, particularly in providing knowledge of how to be successful in the running of the business.
Therefore, for the franchisor, the benefits of providing a means for control over major aspects of the business functions such as sources of income, pricing, stock control, material supplies, distribution costs, labour and overheads including costs of franchising and renewable fees. Supporting systems for estimating, quotations, bills of material, contract analysis and invoicing must not be underestimated. Each of these elements are crucial to maintaining a successful franchise network. Unfortunately, all too often the franchisees are left to their own devices for organizing accounts and supporting systems.
With the introduction of Software as a Service (SaaS) there are new web-based packages at very affordable prices and franchisors would certainly benefit from searching the market place and selecting a common package suitable to complement their franchise operation and deal with some of the items detailed above, particularly those that would prove to be useful to their clients. At the same time they should consider how they currently monitor the financial performance of each franchisee. Better monitoring will certainly contribute to the success of the main business and at the same time the franchisee, having been provided with a structured control package should find the management of the franchise less arduous and will see this as a major benefit.
Autosum Accounts (www.autosumaccounts.com) offers one such management accountancy package that is quite suitable for the franchise industry. It is affordable and user-friendly, where the franchisee as the main user is given full access, and the franchisor has the means to monitor progress on-line without interfering with the day-to-day accounting routines through ‘third party' access to view and print. Further details are available on request.
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