Just like any other business, bookkeeping and accounting is an important part of running a sustainable and profitable franchise. Being the owner you probably want to take on this responsibility yourself but bear in mind that an experienced franchise accountant will help you in preparing useful reports, organizing records, filing taxes and can also give you sound financial management advice.
There are three types of accountants who can provide services to franchises and you should go with the one that best suits your needs.
1. Tax Accountants
These professionals focus on compliance with laws, filing and tax planning. They’ll help you with bookkeeping, software assistance, preparing profit and loss statements, balance sheets, cash flow statements and receivables. They usually don’t analyze the numbers or offer management advice.
2. Business Accountants
As compared to Tax Accountants, Business Accountants will guide you in the overall running of the endeavor. They are focused on business performance and will study the data and suggest ways to improve profitability.
They also help in business valuations, loan proposals and preparing a venture for sale.
3. Franchise Accountant
These accountants are especially trained to work with franchises and can help you with agreements, understanding obligations, funding, loans, and in managing the operational costs. They will also tell you about any additional paperwork, reporting or fees which might be associated with your particular business concern.
Once you’ve narrowed down your list, go over the following to make your final decision.
1. Education and Experience
What degrees or certifications does the accountant have? Have they passed all the necessary exams and do they hold a proper license? What kind of experience do they have? Asking all these questions will help you decide if they’re good fit for you and your business. You can also ask for references from their clients.
Be open about the problems you’re facing in the business and ask how the accountant can help in those areas. An open dialogue will give you an idea about his/her personality and also let you know if you’ll both work well together in the future.
Don’t be shy to ask about fees since they can vary between accountants and firms. Naturally you’ll want someone who can fit in your budget but don’t make a final decision based on costs alone.
At the end of the day, you’ll want someone with the right mix of education, experience, communication skills and service charges to help you in achieving your business goals.
Syed A. Raza Professional Corp. has an experienced team of franchise accountants in Ontario and can provide you with a full range of accounting and tax services. Contact us today @ 647-499-6636 for a free consultation.