10 Reasons Franchise Owners Should Hire an Accountant
Accurate financial information lays the foundation for wise business decisions. Can you afford that capital improvement or a professional manager? How much is your next tax bill? Should you expand? Will recent profits allow you to buy a new car or take a bucket-list vacation?
Ledge Accounting, which specializes in serving franchise businesses, helps clients figure out the right answers to those questions while meeting 100% of their accounting needs. In addition to handling tax filings, budgeting, profit-and-loss statements, cost tracking and the like, Ledge Accounting’s certified public accountants assist with expenses that apply solely to franchise businesses, such as licensing costs, royalties and franchisor advertising fees. The International Franchise Association reports that Americans owning more than 800,000 franchise units will incur those fees this year.
Ledge Accounting CEO Ryland Beard promises his firm is a turnkey solution that can lift those weighty, tedious chores off the shoulders of franchise owners. Beard lists these 10 reasons why franchise business owners need an accountant:
1. Expert Financial Management
Ledge Accounting tracks revenue and expenses so business owners can adapt to changing market demands. Clients receive financial reports tailored to their particular franchise by the seventh day of every month. Ledge Accounting updates each client’s books weekly. And if clients have a question, Ledge Accounting offers instant support by phone or email, or a Zoom call can quickly be arranged.
2. Tax Compliance
Business owners deal with payroll taxes, property taxes, income taxes, inventory taxes and more. Ledge Accounting files tax returns lawfully while ensuring clients don’t pay too much. And Ledge Accounting helps business reduce tax bills by taking deductions for legitimate expenses owners may have overlooked. When the firm’s CPAs do quarterly client meetings, they discuss and plan for taxes.
3. Financial Planning and Budgeting
Although Ledge Accounting doesn’t have a crystal ball, its experts can identify trends and predict future outcomes to help franchise business owners pivot for success. They can advise on whether (and when) to make a purchase and urge that taxes be paid at advantageous times, for instance.
4. Time Savings
Business owners dislike bookkeeping, Score.org noted this spring. By outsourcing it, business owners relieve themselves of the burden and free up time for tasks nurturing business growth (marketing, advanced training, managing employees, etc.) as well as for family and leisure activities.
5. Cost Control
Ledge Accounting’s specialists can advise clients when they’re overpaying or have redundant expenses, and they can suggest ways to cut costs by switching vendors, doing bulk buys, outsourcing or investing in more efficient technology.
6. Accurate Financial Reporting
Ledge Accounting produces clean financial reports and files pristine tax returns. Franchisors praise the firm’s professional documentation as reducing hassles for both franchisees and franchisors.
7. Cash-Flow Management
All businesses, and especially seasonal ones, experience ups and downs based on factors like weather, consumers’ buying urges, fluctuations in the economy, and slow-paying clients. Recommendations from Ledge Accounting can keep capital steady.
8. Strategic Advice
When is it time to invest in another franchise or an advertising blitz? Should a client sell the business now? When is retirement doable? Ledge Accounting can supply answers and back them up with numbers.
9. Fraud Prevention
If revenue seems too low for a hustling, bustling business, Ledge Accounting can help franchisees figure out what’s going on. Periodic reviews of financial records ensure accuracy and identify any discrepancies that could indicate fraudulent activity.
10. Business Growth Support
During quarterly meetings, Ledge Accounting’s experts and clients collaborate to determine tactics vital for business growth goals. For instance, reinvesting profits or securing a loan may be discussed as vehicles for maintaining or accelerating a franchise’s upward trajectory.
Ledge Accounting serves hundreds of franchisee clients, and Beard says they experienced a 7% to 25% increase in profit margins because his firm’s financial reports facilitate smart business decisions. LedgeAccounting.com offers free consultations, and if hiring is a go, onboarding is accomplished with a 20-minute Zoom call. Then within two weeks, Ledge Accounting will clean up the business’s books and deliver clear, accurate financial information to the new client. Clients pay $395 per month for the firm’s services with another $95 for tax filing. No contract is required.
