If you are a franchisee, consider partnering with an accounting firm specializing in franchise accounting services. Compared to other small businesses, franchises must comply with regulatory requirements and standards set forth by the franchisor, and it can be challenging to keep up with these requirements.
Here are five types of franchise accounting services you might find beneficial if you own or operate a franchise.
1. Auditing Services
If you are a franchisor, you must provide your franchisees with a franchise disclosure document (FDD). An FDD is required by the Federal Trade Commission’s Franchise Rule. It gives your franchisees specific information about your franchise and operations before they agree to operate it. Part of the FDD requires a franchise audit, which a franchise accounting specialist must complete.
Aside from conducting franchise audits, your audit firm can help you satisfy other necessary compliance requirements.
2. Tax Accounting
Taxes can be tricky, especially for franchisees and franchisors. This is something to be aware of when you look for accounting services.
As a franchisee or franchisor, you’ll need to pay quarterly tax payments. You might also need to pay royalty payments depending on your business agreements. If you have trouble keeping up with a payment schedule or are unsure how to submit your tax documents, consider looking for an accountant with this experience.
3. Chartered Accounting
Chartered accounting is another accounting and advisory service you may need as a franchisee or franchisor.
Along with other types of accounting services, like tax preparation and audits, chartered accounting aims to provide expert financial advice. Chartered accounting is highly specialized and technical. Considering the technicalities of owning and operating a franchise, the specialization of chartered accounting benefits franchises.
4. Bookkeeping Services
Bookkeeping is a franchise accounting service you may find with an outsource accounting and advisory agency. Accurate and reliable bookkeeping is a must if you operate a business. It can be challenging for franchisees to hire a dedicated team member to handle bookkeeping. If you’re struggling to find a qualified bookkeeper or your management team struggles to find the time for proper bookkeeping, consider outsourcing this part of your business operations.
Outsourcing accounting and bookkeeping teams can save you time, ensure your employees are paid on time, calculate wages, manage withheld taxes and the accompanying documents, and ensure compliance with all tax laws and regulations.
5. Revenue Reporting Services
Revenue reporting is offered to franchisees and franchisors. Revenue reporting is a critical aspect of franchise accounting because franchisees need to understand how, when, and where their operations make money, and franchisors also need to understand how franchisees impact the company’s overall revenue.
Your audit team will help create necessary documents, such as financial statements, income statements, cash flow statements, and other documents, in the revenue reporting process.
Franchise Accounting Services with Assurance Dimensions
Various types of franchise accounting services benefit franchisees and franchisors. Consider partnering with an audit team that understands how franchises operate and the regulations governing them.
At Assurance Dimensions, we have over 75 years of industry experience. We offer remote consulting services, making it even more accessible and secure to get the help you need for your franchise. Contact us today to learn more.