WhatElsetoKnow
AboutFranchiseAccountants?
When you have a business, your first goal is to stay afloat and, ideally, to make a profit too. For that, you should keep track of your finances and understand your expenses and your cash flow.
That’s where accounting comes into the scenario. Whether you’re running a pop pizza shop or establishing your own franchise, proper accounting and bookkeeping play a crucial role to run a successful business.
For the most part, franchise accounting has similarities with non-franchise accounting, but there are a few idiosyncrasies you should keep in mind.
For a new entrepreneur getting started with accounting for their franchise is tough. Know everything about franchise accounting from this article, including how you can do it yourself and how to know if you need to hire a professional.
What Is Franchise Accounting?
Accounting is simply keeping records of financial transactions linked to your business. So, if you close down the day at your pizza shop, you should count up the money in the register, and take note of that in your financial records, you’re accounting.
When it comes to a franchise business, the basic principles of accounting are the same: you still just need to keep records of your financial transactions but by using franchise accounting, you’re doing it in the context of a franchise. Why does this need a separate designation in spite of being lumped in with accounting in general? Franchises have a few different unique fees and expenses that aren’t not there in non-franchise situations.
How To Do It-
Let’s begin with getting into the nitty-gritty: how exactly do you account for a franchise? The answer is not simple Professional accountants typically possess a bachelor’s degree in accounting or a related field and they also have a professional certification on top of that. Properly accounting for a franchise may be a harder matter, and you’ll often need to hire a professional franchise accountants.
