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Bookkeeping for Franchise
With over 9+ years of experience, we are a trusted partner for accounting and bookkeeping services in the US. Whether you’re a startup, a small business, or an established enterprise, our services can meet the unique needs of your industry. Our deep understanding of US regulations and best practices can empower your financial journey and drive you toward long-lasting success!
Hire Remote Team
Business Tax return filing by Certified
CPA / Enrolled Agent
(Starts at $350)
QuickBooks And Xero Certified Experts
50% Reduction In Costs
Bookkeeping and Accounting for Franchise Businesses in the US
- Maintaining accurate financial records is essential for any successful franchise business in the US. Bookkeeping and accounting provide the tools for recording, organising, and analysing financial transactions. These methods allow franchisees to track their income and expenses, address potential problems quickly, and comply with relevant laws and regulations. Accounting goes further by interpreting financial data and producing reports that help identify business improvement opportunities. Hiring Meru accounting can ensure proper procedures are followed while allowing the franchisor to save time and money on internal staff. In short, taking care of bookkeeping and accounting duties from the onset significantly improves a franchisee’s ability to achieve success over time.
- Bookkeeping involves the systematic recording and organising of financial transactions. It is the accounting foundation and provides the necessary data for accurate financial reporting. In a franchise business, bookkeeping tasks include:
Bookkeeping and Accounting for Franchise Business:
Accurate Recording
- Record all financial transactions, such as sales, expenses, payroll, and purchases, manually or using accounting software.
Chart of Accounts
- Establish a specific chart of accounts for the franchise business to categorise income, expenses, assets, liabilities, and equity for easier tracking and analysis.
Bank Reconciliation
- Regularly reconcile bank statements with recorded transactions to ensure accuracy and identify discrepancies by matching transactions in the bank statement with the books.
Accounts Receivable and Payable
- Track customer payments (accountsreceivable) and vendor payments (accounts payable) to manage cash flow and maintain good relationships.
Payroll Management
- Accurately record wages, deductions, and taxes for employees, ensuring compliance with employment laws and remitting payroll taxes accurately.
Financial Statements
- Prepare financial statements, including income statements, balance sheets, and cash flow statements, to provide an overview of financial performance, position, and liquidity.
Analysis and Interpretation
- Analyze financial data to identify trends, assess profitability, and evaluate the financial health of the franchise business, supporting informed decision-making.
Tax Compliance
- Ensure compliance with tax regulations, including income tax, sales tax, and payroll tax, by preparing and filing tax returns accurately and on time.
Budgeting and Forecasting
- Develop budgets and forecasts to set financial goals, estimate revenues, expenses, and cash flow, and make informed financial decisions for future growth.
Financial Analysis Support
- Assist franchisees in analysing financial information and understanding the financial implications of their operations, offering guidance and support.
- Meru Accounting can offer guidance on complex issues like taxes, tax laws, and reporting guidelines imposed by regulatory bodies like Federal Trade Commission(FTC)and Franchise Disclosure Document(FDD).
Profitability With A Franchise System
- Profitability is a fixed portion of revenue franchisee calculated in percentage form. It is a variable of the fees the parent company or the franchisor sets. Therefore, this fee is a determinant of the profit that the franchisees earn. It is a fixed percentage of the revenue made by an organisation. Hence, it is also essential to set fees based on the ability of the franchise industry to incur start-up costs to provide working under a brand name and its products and services. The onetime they account for franchise fees is by implementing a policy that will help calculate the amount deducted from the business income tax return.
- We can account for franchise fees in various ways. It depends on the franchisee’s convenience and the franchise organisation’s and parent company’s requirements. Two of the most basic account management techniques are ‘franchise royalty fees’ and ‘franchise fees amortisation’.
- So, through these accounts, the franchisee pays its fees over time, which splits up monthly, quarterly, or yearly. The royalty fee is the franchisor’s income from establishing the franchise business. It is a fixed percentage amount of the gross sales that the franchisee pays. Franchise fee amortisation is the distribution of the franchise fee over a predetermined period, either yearly or monthly
The Benefits Of Bookkeeping And Accounting For Franchise Businesses
For franchise businesses, bookkeeping and accounting are crucial for success. Properly managing financial records can provide valuable insights into the company’s profitability, cash flow, and overall performance.
Bookkeeping helps franchisees track revenue and expenses regularly, allowing them to identify potential issues or areas for cost reduction.
Proper bookkeeping ensures compliance with tax laws and regulations, helping franchisees avoid penalties and audits from the IRS.
Outsourcing bookkeeping services frees up franchises' time and resources to focus on other aspects of their business operations.
Accounting facilitates the preparation of accurate financial statements, demonstrating the business's financial performance and aiding in securing financing from lenders or investors.
Accounting facilitates the preparation of accurate financial statements, demonstrating the business's financial performance and aiding in securing financing from lenders or investors.
How To Find A Bookkeeper Or Accountant For Your Franchise Business?
When it comes to finding a bookkeeper or accountant for your franchise business, consider the following steps in partnership with Meru Accounting
By following these steps with Meru Accounting‘s expertise, you can find a qualified bookkeeper or accountant for your franchise business. This ensures accurate and up-to-date financial records while maintaining compliance with relevant regulations outlined in the Federal Trade Commission’s Franchise Disclosure Document (FDD).
Meru Accounting Specializes In Accounting For Franchise Businesses:
Accounting for Franchise – We have a planned accounting policies model to meet client requirements effectively and accurately.
A franchise business is like a branch or start-up industry that caters to leading brand businesses in various locations with little establishment and setup. However, multiple entities such as franchisors, franchisees and other regulatory authorities function in this business.
For smooth running and proper functioning of their businesses, franchise organisations require reporting of statements. These statements are of revenue earned, profit and loss incurred, and business updates concerned with its operations to the concerned franchisor. Then, this reporting takes place ranging from weekly to quarterly and annual period. They base it on the specifications laid down by the parent company and other regulatory authorities like the ‘Federal Trade Commission’.
Even the franchisor is required to share details and documented information for accounts to the respective franchises that he uses as a reference and for updating. This refers to the franchise disclosure document (FDD), which is a legal report that a franchisor presents to the franchise buyers. Thus, on request, the franchisor should give this document along with other audited financial accounts.
Contact Meru Accounting today for tailored accounting solutions for your franchise business.
Conclusion
Bookkeeping and accounting are essential for franchise businesses in the US. Proper record-keeping can help you make informed business decisions, plan for the future, and comply with legal requirements.
Outsourcing your bookkeeping and accounting needs can save you time and money while ensuring accuracy. Consider experience, reputation, pricing structure, and communication skills when outsourcing these services.
Remember to also familiarise yourself with franchise disclosure documents (FDD) provided by franchisors before signing up for a franchise opportunity to understand what is expected of you regarding financial reporting and compliance.
By prioritising bookkeeping and accounting practices from the outset of your franchisee venture, you can set yourself up for long-term success.
To know more about our bookkeeping services, contact Meru Accounting today!
Hiring Virtual Accountant With Meru Accounting
Meru Accounting provides world-class services that cater to all the needs of cloud accounting and bookkeeping of your business.
We work on the best accounting software like Xero and Quickbooks, as well as add-ons that will make sure all your work is up-to-date.
We also manage VAT, BAS, Sales Tax and Indirect taxes for you so you are always ready at the end of the financial year.
Help you with switching from your traditional software to Xero and Quickbooks.
- Cost-saving.
- Access to skilled and experienced professionals.
- Better management of books of accounts.
- Decreased chances of errors.
- Improve business efficiency.
- De-burdens in-office employee’s dependency.
- Better turnaround time.
We work on virtual technologies like Team Viewer, Virtual Private Network (VPN) to share and access data from your system.
You have to share your accounting software login details.
Through that, we complete all of your work and update it on the cloud, so you can have access to your data from anywhere and at any time.
Software is not a barrier for us. Due to our strong and professional accounting knowledge, we can prepare your books in almost any of the accounting software
Our experts are always all ears to listen to your queries regarding bookkeeping and accounting or our services. You can contact us anytime by visiting: Contact Us page.
We provide our bookkeeping services at the rate of US $10 per hour. So, you only need to pay for the amount of time actual work is done.
We take certain preventive measures to secure your data, like:
- Cyberoam Firewall to prevent any kind of foreign threat.
- Dual-step authentication
- Implement anti-virus
- Limit user access so that login details are with a few people.
Meru Accounting work on some of the best accounting software’s like:
- Xero
- Quickbooks
- Netsuite
- Saasu
- Wave
- Odoo
Along with that, we also work with many add-ons like Workflow Max, Receipt Bank, Slack, TradeGecko etc., to extend your software’s capacity and improved work experience.
To book for trial, call us on our numbers or Please fill out the form here.
Our Work Information
We have combined team of Professionals. Seniors are generally Certified Chartered Accountants. Junior Bookkeepers are having Qualifications like Bachelors of Commerce, Masters of Commerce, Masters in Business Administration in the subject of Accounts and Finance, Intermediate level Qualification of Chartered Accountancy, etc.
For information visit our work methodology page.
We prepare a checklist of information required for bookkeeping and send you at timely intervals so as to ensure that we can do bookkeeping faster.
We can provide to you once we move ahead in our interview.
We serve clients on MYOB and have expertise working in Essentials, Account Rights Plus, etc.
Yes, We are presently processing Payroll for Number of clients in US , UK and Australia and take care of complete payroll activities.
Goods and Service tax (GST) is levied on sales of all the goods and services in Australia. GST is generally chargeable at 10% of value of sales.
Business Activity Statement is a predefined form to be submitted to the Australian Tax office by all the business persons in order to report on their all the tax obligations during the period covered.
BAS is generally required to be filed quarterly by various businesses.
Individual Business Owners
Yes, Owner of the business can prepare sign and lodge the tax return on his own. Its not mandatory that the Tax return needs to be signed by an EA or CPA.
No , its not mandatory that it should be prepared by only CPA or EA. It can be prepared by anyone who has PTIN.
We have Enrolled Agent who has the Authority to sign the documents for our clients after completing the through professional check.
Meru Accounting has its operational centre in India and hence the prices are quite less as compared to US based CPA’s and Enrolled Agents.
Meru Accounting has a team of Tax experts. Each Tax expert prepares around 300-400 Tax returns every year for various CPA’s in United States and Individual Businesses like yours. Due to this vast Experience and Robust Quality Check processes in place we can ensure you about correct Tax planning for your firm.
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