Profit making is the most significant motive behind every entrepreneur aspiring to take up franchising. A business is able to earn profits only when its accounts are managed well. As a franchise attorney safeguards the interests of aspiring as well as new franchisees, similarly, an accountant safeguards the franchise business from failure and act as a catalyst for a successful franchise. Franchisees need to have an efficient accountant in their franchise team to help the franchise business run profitably. Lack of expertise and time limitations are few of the constrains of an entrepreneur to manage the accounts personally, therefore, a specialised accountant is a must for every franchise business. The article herein deals with the responsibilities of an accountant for aspiring as well as new franchisees.
For prospective franchisees
Aspirants keen on taking the franchise route need the expert services of an accountant from the initial period of selecting a suitable franchise company. Below given are the various ways in which an accountant can help the prospective franchisees:
Evaluating franchisor’s financial strength: After selecting the franchise in which the entrepreneur is interested, the accountant can carefully analyse the financial strength of the franchisor. He can study the related financial papers and advise the prospective franchisee whether to take the franchise or not.
Assessment of earnings and ROI: Professional accountants can help aspirants in figuring out the probable earnings and Return on Investment (ROI) that can be made by taking a particular franchise.
Determining the franchise fee and royalty: Being novices, the aspirants are not aware of the franchise fee. Therefore, taking the services of an accountant can help the aspiring franchisees in finding out whether the franchise fee and royalties demanded by the franchisor are reasonable or not.
Suitable for franchisee’s investment: An accountant can also assist the franchisee in selecting a franchise system that is best suited to prospective franchisee's investment and goals.
Business plan: A well made business plan helps the franchisee acquire loans from financial institutes and etc. A well qualified accountant can help him in doing so.
For current franchisees
Franchisees should keep in mind that the need for an accountant does not cease after becoming a franchise owner. Rather he can become the advisor of the franchisee and contribute further towards the well functioning of the franchise business. Below mentioned are a few key services of accountants for current franchisees:
Takes care of financial statements: Accurate business decisions are the result of efficient finance management. The presence of an accountant makes this task easier by keeping an up-to-date record of the financial data. The accountant assists the franchisee to understand how his business has performed over certain period of time, and its future growth as well.
Review of franchise outlet: Assessment of the outlet at regular intervals by the accountant can make the franchisee aware of potential problems that can affect his franchise.
Financial advisor: Franchisees require the advice of an accountant on regular interval for tasting success.
Tax payment: Accountants can assist in preparing and monitoring tax returns and payments for the franchise outlet.
To conclude, it can be said that an accountant is an indispensable element for a successful franchise business. Hiring a professional accountant even if it costs a bit is an appropriate decision for the long term success of a franchised outlet.
So what are you waiting for go ahead and hire a professional accountant for success.
