• New Wave Accountants

3 Ways an Accountant Can Help You With Your Franchise

For people who don’t prefer being stuck in a cubicle from nine to five but would also like to avoid the long and arduous process of trial and error involved in establishing a business from scratch, a franchise provides the best opportunity.


However, although owning a franchise sounds like an excellent alternative to starting your own business, there will still be challenges you have to face. Just like launching a business of your own, purchasing a franchise will involve a significant investment, not to mention the ongoing royalties and fees you’ll have to pay while running the franchise.


Accounting Assistance for Your Franchise


With the financial matters involved with running a franchise, anyone can feel overwhelmed. The good news is that you don’t have to do everything on your own—with the help of an accountant, you’ll be able to understand the performance of your business and avoid financial risks.


Some of the ways an accountant can help you include:


1. Accessing the Best Loans


If you wish to purchase a franchise, you’ll most likely need to invest tens or hundreds of thousands of dollars. If you don’t have a large amount of cash in your bank account, brace yourself to apply for various business loans.


Although you won’t run out of loan options, you shouldn’t apply to every one of them, as you could put yourself in a serious financial situation in the future. An accountant will guide you while looking through your loan options and successfully develop a manageable repayment plan.


2. Supporting Staff Payroll Management


You’ll be expected to run the franchise with a complete team from day one, which may be too much to handle if you don’t have any experience managing a workforce. Unlike in an independent business where you can start small and hire people as you go, you’re expected to have a whole team ready.


Having an established team is difficult because you must be prepared to organise the payroll and introduce a benefits scheme. It will be easier to recruit the right talents and explore digital tools to make the payroll process more manageable with an accountant by your side.


3. Monitoring Cash Flow


As a franchisee, you’ll have to pay several monthly fees, which could include royalties, utilities, salaries, and rent. Although you’ll be running a business based on a plan that’s been proven to succeed, you may experience times where you’ll need extra working capital to stay afloat.


To avoid getting undercapitalised and failing, it’s crucial to monitor your cash flow carefully. An accountant can help you keep a close eye on your finances and plan accordingly to fulfil financial commitments.


Conclusion


Franchises offer fantastic benefits to business owners, allowing them the independence of small business ownership and supported by an extensive business network. Indeed, when you buy a franchise, your business is bound to succeed since it runs based on a proven successful business model. To guarantee the growth and success of your franchise, make sure to have an expert accountant on your team!


Are you looking for the best accountant on the Gold Coast? Then, leave the job to our team at New Wave Accounting! We understand the importance of a proactive, reliable accountant, so you can count on us to provide end-to-end accounting and bookkeeping services that help scale and grow businesses. Book a free 30-minute strategy session today!


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