Many of us have entertained ideas of starting our own business. We think of the freedom and control it wuld give us over our finances, or maybe we think about the opportunity to enter the industry of our dreams.
Then we remember the costs and paperwork that goes into opening a new business, and quietly dismiss the whole idea as wishful thinking.
While it's true that there's a lot of work that goes into opening a new business, you shouldn't let that discourage you from your dreams of running your own business. In fact, there are plenty of options you have to get started in business...some of which cut out almost all the legwork that comes with starting your own business!
This is where franchising comes in.
For the past couple of years, business franchising has grown significantly in Australia. If you’re thinking of buying a franchise, you’d best get in line!
Of course, buying a franchise comes with a whole host of other unique questions that must be addressed, including who does your bookkeeping. In some franchising agreements, the franchisor will provide bookkeeping services. But in other cases, you’re on your own. So, where do you start?
Why buy a franchise?
Franchising is a business arrangement where one party (the franchisor) grants another (the franchisee) the right to use its trade name, branding and its processes and systems to produce and/or to market a good or service. In return for the name and products, the franchisee is asked to pay a franchise an ongoing fee.
Buying a “business in a box” helps you avoid 90% of the exhausting legwork that comes with opening a new business - the products are already designed, marketing is looked after for the most part and best of all, you have an existing brand to leverage.
Of course, the outlook when buying a franchise isn't all sunshine and rainbows. Obviously, it's important to choose the right franchising partner - you wouldn't want to buy a franchise license from Blockbuster, for example!
Finding the right bookkeeper for your franchise
Whether you’ve franchised a fast-food restaurant, a car dealership or a fitness centre, it’s important that you have accurate bookkeeping service to help you make the right calls.
Depending on your agreement with your franchisor, you might not have to do any of your own bookkeeping. If that’s you, congratulations!
In many other cases however, franchisees have to go it alone. And like many other business owners, these franchisees often find themselves in hot water thanks to DIY bookkeeping.
What are you meant to do?
Here at Maximum Business Solutions, we have come up with a list of tips that you need to consider if you’re seeking for the right bookie for your franchise.
Organised and efficient
KISS - Keep It Simple, Stupid.
It's a simple slogan, but this should be your mantra when it comes to anything related to your franchise - and especially the bookkeeping.
Not everyone has a head made for numbers - and that’s OK!
Even if you’re not comfortable around charts and tables, as a franchise owner you still need a solid grasp of how to interpret them. And when your accounts or your books are disorganised or overly complicated… well, let’s just say you’re making it much harder than it needs to be to keep track of the real financial state or health of your franchise!
That’s why if you don’t feel comfortable looking after your own books, we suggest finding a professional bookie to streamline your accounts and get them in a more digestible form.
Or better yet, get that bookie to look after your accounts completely so you can start making the right calls!
Honesty and trustworthiness
Bookkeeping involves highly sensitive financial information. And as these need to be kept confidential, you need to work with a bookkeeper who is both honest and truthful.
And as your franchise’s bookkeeping plays a big role in your franchise’s accounting, you need to work with someone who you can rely and depend on.
You need someone who you can be comfortable with most especially when it comes to dealing with financial transactions and data.
At the end of the day, what goes on with your bookkeeping can significantly affect your business’s accounting.
Open and communicative
Being kept in the loop when it comes to your franchise’s bookkeeping is very important.
As there are so many factors that contribute to the bookkeeping process, you must be able to work with someone who keeps the line of communication open and available.
Work with someone who will take time to talk and to understand your franchise’s operations, goals and other relevant issues.
This would not only create a better understanding of the franchise but would also allow the bookkeeper to know where the business stands and how to go about with it in the future.
Franchising in Australia
In the past, business franchising was a virtually unknown business model in Australia.
It wasn’t until the 1970s when franchises of US fast food companies came that this concept gained ground down under. That’s why when we think of franchises, most of us instinctively think of Macca’s and the other major fast food outlets.
After the success of these US fast food franchises, we saw the rise of franchising throughout the country.
One problem that many people getting into a franchising agreement think is that by opting into a franchise, their success is guaranteed.
What they fail to realise is that while you do get processes and products taken care of, a franchise is still a regular business, with all the risks and problems that come with any other business.
That means that franchisees have to be just as switched on as any other business owner - after all, you may be using someone else’s name, but you’re still running the show! And like any other business, one of the most reasons a business franchise might not see success is due to poor financial management.
In need of a bookkeeping service for your franchise?
In Australia, there are a variety of franchises available for small and medium businesses from different kinds of industries.
Whatever business franchise you opt for, it is important to make sure that your bookkeeping requirements are met at all times.
For some, finding the perfect bookkeeping for the franchise might be a challenge but we here at Maximum Business Solutions are here to make sure you need not look further.
Whether your franchise is located in Bayside, Beaumaris or surrounds, Maximum Business Solutions can manage your small or medium business franchise.
We are here to address your bookkeeping issues and get your accounts up-to-date.
We aim to clean your accounts and to make sure you have better business transparency.
If you wish to learn more about Maximum Business Solutions can help you and your franchise, organise a catch up with us, or give us a call on (03) 9589 0128.