Which Accounting Solution Is Best For Franchisees?

There are a variety of reasons why franchisees decide to put their time, money, and effort into a franchise concept. I think its safe to say, however, that few if any do it with the anticipation of keeping a new set of books. Most franchisees have never kept their own books before and find accounting somewhat intimidating. While this intimidation leads some franchisees towards paying an accountant or bookkeeper to handle the tasks of producing their financials, the costs of hiring such help drives an increasing number of franchisees to use do-it-yourself type accounting soft wares. Soft wares like QuickBooks and customized, online solutions like My Profit Keeper can significantly cut costs and provide other benefits for franchisees.

With such a wide range of accounting systems available, choosing the best solution to promote within a franchise is no easy task. Below are some tips that help franchisors answer the question “Which accounting solution is best for me and my franchisees?”

1. Is it online? More and more franchisees are finding online accounting solutions are the way to go. Data can be inputted and accessed from almost anywhere at any time. Also, franchisees’ data is regularly backed up and protected in the case of an accident. I’ve spoken with many distraught franchisees that lost their books because they were using a soft ware and something bad happened to their computer (theft, virus, flood….etc.) Reality is that few of us back up our data as often as we should and online solutions back it up for us.
2. Is it intuitive? Ease of use is the #1 thing franchisees desire from their accounting solution. After receiving training, franchisees should be able to follow instructions and close their books monthly with relative ease. Good accounting solutions have a streamlined design that is easy to learn and use.
3. Does it save time over other solutions? Time savings is also a top 3 desired feature by franchisees regarding accounting solutions. Nothing frustrates a franchisee more than spending 4 hours they don’t have on a task that should only take them 2. Take a good look at how long it takes users to close their accounting periods on a regular basis.
4. Does it promote consistency? Consistency in the quality of data and the production of franchisees’ financials is the #1 thing franchisors desire in a bookkeeping solution for their franchisees. A good accounting solution will steer your franchisees toward entering data in a similar fashion so you have quality data that can be compared. A good solution should also encourage users to maintain good records on a consistent basis.
5. Can you run comparative analyses? Comparing your franchisees’ numbers benefits the franchisee individually and your franchise as a whole. Franchisees locate where their costs are out of line and franchisors identify which franchisees need more attention. Unfortunately, few solutions provide this feature. My Profit Keeper actually provides a site for the franchisor where franchisee financials and graphs comparing franchisee data can be accessed online.
6. Is there support? Franchisees need hand holding when it comes to keeping their own books. You can save your franchise money and headaches by finding a solution that provides low cost/free support. Otherwise, plan on handling support calls or referring your franchisees to pay accountants for accounting help.
7. Is there training? Just like with support, some accounting systems provide training so you don’t have to. Training is an important feature because it reduces user frustration by facilitating the learning process of a new system.
8. Is it cost effective? Franchisees won’t use anything that doesn’t make sense economically. Pricing can vary depending on what type of features a solution provides. Make sure the one you promote to your franchisees gives them the quality financial data they need without breaking their bank.