Benefits of Creating an Internal Bookkeeping System for Mulit-Unit Franchise Owners

All good businesses are simply a collection of systems and nowhere are they better understood than in a franchise. Franchises have systems from how to open the store and sweep the floor, how to put part A with part B and how to turn off the phone system at night. There are systems for marketing, operations and bookkeeping. These are all dictated to the Franchisee by the Franchiser.

Internal bookkeeping is often an overlooked area for the Franchisees. The Franchiser has their requirements for tracking sales. However, all other aspects of bookkeeping are left to the Franchisee. When owning and running multiple stores the business of running the business tends to place this aspect of bookkeeping to the back burner. Your Franchise POS system tracks incoming inventory and sales. This satisfies the Franchiser but what analytics does it proved to you the Franchisee that allows for managerial finance control?

Many Franchises implement QuickBooks to track outgoing payments. This is only one side of the business. To get a clear picture of the business the incorporation of the inventory and sales with outgoing payments is necessary. With multiple stores a franchise owner may find that each store has their own method for tracking those outgoing payments. Be it a different chart of accounts, different vendor descriptions, even different software.

What does creating an internal bookkeeping SYSTEM do for the owner of multiple franchises?

• One Chart of Accounts
• One Accounts Payable
• One Set of financials for all stores and individual financial statement per store
• Internal Cost Controls
• Ability to manage what you expect while inspecting what you manage

Your managers at each store have the job of managing, people, product, customers, facilities and the relationship with you, the owner. Bookkeeping is a deep 5th runner in this scenario. They were hired for the core competency of managing the first 4 but the fifth aspect may not be a core competency. Based on research that Indevia Accounting has accumulated, on its management of data entry for franchise bookkeeping, this appears to more often be the norm.

Using QuickBooks, Indevia’s team of highly qualified accountants can organize your varied stores into one, easy to control and review, matrix of information that will give you the internal controls you need to run a more efficient SYSTEM and obtain quality real time information on where the profit and losses are occurring.