Franchise owners are no different than other small businesses; they need to perform bookkeeping and accounting to stay on top of financial activity and manage the business effectively. Without those two activities being practiced regularly, the franchise might as well be operating blind. However, the same two activities are frequently neglected. Why? They don’t generate income, they usually have nothing to do with the actual franchise business itself and what it does, and they use valuable labor resources that could be used for sales. Accounting in general is seen frequently as a necessary evil, avoided as much as possible until it is time to figure out profit, apply for a loan, or file required tax reporting.
How to Change the Unattractive?
Bookkeeping and accounting for franchises may not be appealing to many, but they are essential to all for successful operations. So, instead of constantly being frustrated with the task, the franchise is better off focusing on what it does well and letting an expert handle the financial posting and tracking workload instead. This is doable through a support service skilled and trained in accounting, as well as being capable of scaling up and down as needed to match the client’s workload demand.
The above is not a new concept, but it is one of the most effective ways to utilize labor resources for their best output, by matching people with what they do best, productivity skyrockets. Again, the idea isn’t novel; it’s been proven repeatedly in numerous psychology studies; when people like what they do, they do it better. Even more interesting, when people work as a team doing what they like, they produce more than they ever would as individuals. In the business world, this is commonly referred to as synergy, and franchises can leverage it too.
Also Read: Smart Investment Strategies For Financially Savvy Individuals
Key Aspects Served With Better Financial Staffing
Franchise owners benefit significantly when the business’s bookkeeping is taken care of properly. Those benefits include:
- Timely reconciling of sales and receipts
- Tracking and reporting of the impact of transactions, amounts, frequencies, and trends
- Proper categorization of expenses as they occur
- Inventory tracking
- Consumption and waste tracking
- Revenue and profit reporting
Again, without proper accounting tasks taken care of correctly, franchises operate blind. It’s a fast way to make a short run of the business in general and become yet another statistic on the failed small businesses list of the U.S. Bureau of Labor Statistics, reported annually on their website.
Don’t be another statistic. Be a success as a franchise, especially with accounting.
