4 Benefits of Outsourcing Franchise Accounting
Not only has outsourced accounting been shown to drive down year-over-year franchise costs through the efficiencies it creates, it can also be scaled.
As a franchisee, you have a laundry list of people and processes to manage. This includes your staff members, your vendors and, of course, your franchisor’s expectations—to name a few. In the midst of it all, you also must keep tabs on the financial side of your business. This is an ongoing challenge.
Thankfully, you have a few options for solving it:
- Delegate accounting and financial-related tasks to a current staff member.
- Hire a new staff member (i.e., a CFO or dedicated financial professional).
- Outsource your back-office accounting to a third party.
Out of these three options, an outsourced solution arguably offers the most intriguing benefits. Not only has it been shown to drive down year-over-year costs through the efficiencies it creates, it can also be scaled—from a single service to a complete back-office solution—to your business needs. Outsourced solutions are typically provided by firms that rely on temp-to-hire models, bookkeeping-only firms, and CPA firms that provide bookkeeping, technology, and software as a service (SaaS) integration.
Here are four reasons why an outsourced solution could be the best option for your franchise business.
1. Eliminate employee-related risks.
If the person in charge of your accounting were to leave your business, you’d be left trying to fill in the gap. This would likely involve recruiting, hiring, training, and onboarding a new employee—as well as the costs that go along with these activities. What’s more, if you were to rely on just one person, the risk of fraud and theft could be an issue as well.
By outsourcing your back-office accounting, you can avoid the costs of employee benefits and salary as well as the time needed to manage the employee or employees.
2. Tap into a broad range of expertise.
When you outsource your accounting to a third party that either specializes in or offers bookkeeping as part of a holistic solution, you have access to not just one person, but to a team of professionals. In other words, you have a deep well of expertise to tap into when you need it. With the right firm in place, you can have the skill set of a CFO, an accountant, and a bookkeeper at your fingertips. Each professional brings a different type of expertise to the team, which means you get the turnkey support you need.
3. Secure your financials in capable hands.
The price of putting an unqualified staff member in charge of your finances can be grave—even if you rely heavily on accounting software. If the information put into the software isn’t accurate, you won’t be able to rely on it to make important decisions. Outsourcing your accounting gives you peace of mind knowing that experts are in charge.
The bottom line: You should feel confident you have the most capable person in this role. But the truth is, sometimes this can be hard to know for sure. For instance, you may have outgrown the current capacity of your in-house accounting team without realizing it. Outsourcing is especially beneficial in this case, because it gives you the ability to match your financial professionals to the needs you have today—as well as those you may have tomorrow.
4. Make the most of technology.
Are you using all of your technology, and not just your accounting software, to its fullest potential? This can be a difficult question to answer—you don’t know what you don’t know.
More and more, outsourced firms are becoming technology experts. As such, these firms are helping clients leverage their existing technology to operate more efficiently. Leading firms are integrating Enterprise Resource Planning (ERP), accounting and financial software, and building customized KPI dashboards. What’s more, technology in the hands of a highly trained accountant or CPA can tell a more robust story of your business’ health and performance.
Partner with a trusted accounting expert.
Poor financial management practices can wreak havoc on your business. Outsourcing your accounting puts your financials in the hands of a capable and consistent team—and helps you avoid the risks associated with employee turnover and unqualified staff members.
DS+B’s outsourced accounting solutions give you experts who partner with you to manage the financial side of your business. We work with you and your technology in a way that makes sense for your business, so you can focus on what you do best — running a successful franchise and serving your customers.
Contact us today about ways to simplify and safeguard your finances. Also, read our related blog post on 4 KPIs for Franchises.