Franchise accounting to help you make a profit
Franchise margins tend to be very thin. Expense and profit record keeping is vital to the success of your franchise business. A bookkeeper will help franchise owners keep their general ledger organized and accurate. Contact Giersch group for a free consultation. Learn More.
Outsourced accounting for franchises from the experts at the Giersch Group
No matter what type of franchise you own, we help improve your bottom line.
Franchise margins tend to be very thin. Franchise fees and national marketing budget are just two of the additional costs you have to bear as a franchise owner. These fees will really squeeze your ability to make a profit. Every penny counts, and timely accurate financial statements may be your most important tool for successfully turning a profit.
Franchise owners are unique individuals who can wear many hats to make their dreams come true, but accounting requires a unique skill set and a certain level of technical expertise; hard work and determination are not enough. Bookkeeping is not one of those hats a franchise owner should try to wear. The rules of bookkeeping are like the rules of a complex card game: one wrong move can get you in deep trouble.
Spend your time on things you can control, and leave the bookkeeping to us
We have deep expertise in franchise bookkeeping. The Giersch Group will help you understand costs and profit by providing timely accurate financial statements with analysis and interpretation. We have experience with both single-unit franchise owners and multi franchisees as well as with franchisors.
Learn more at a free, no-obligation 30-minute franchise accounting consultation. We have offices in Milwaukee, Brookfield and Madison. While many of our clients are in southeast Wisconsin, our accounting services are 100% virtual and available to franchises nationwide.
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Franchise accounting software
The Giersch Group utilizes QuickBooks Online as the best accounting software for most franchises. The online version allows us to manage your financials while also giving you access to see the numbers at any time. QuickBooks also integrates with most point-of-sale software for accurate tracking purposes.
The Giersch Group advantage
National online bookkeeping services provide impersonal cookie-cutter solutions. The Giersch Group is a hands-on partner. When we deliver your timely accurate financials by the 20th of every month we will also help you review the numbers and provide analysis of your financials so you can make key decisions to improve your profitability. Learn more about our unique approach to bookkeeping and how it translates into better value for our clients.
Franchise Bookkeeping Success Stories
The Giersch Group has deep experience working with both franchisees and franchisors. We’re excited to help you improve your relationship with numbers for greater profitability.
#1 Comprehensive franchisor accounting with online integration
We teach franchise owners how to use their monthly numbers to make more money.
Our Lead Client Controller Katie Perez was the lead controller for a 28-unit franchisor and her deep experience includes calculating franchise fees including royalties & advertising fees due from the franchisee, tracking weekly sales of all locations by owner, verifying calculations of royalties submitted by the franchisee, and provide sales reports chainwide.
Some improvements Katie made for this franchisor include:
- Created an online ordering portal for 26 restaurants at the time to place their food and supply orders that integrated with QuickBooks desktop.
- Cleaned up and began a tracking system for Franchisee and Corporate-owned locations for sales by week.
- Created a spreadsheet to track royalty and advertising payments received from Franchisee.
- Accrued royalty and advertising payments monthly
- Was solely responsible for annual franchisor audit, department of labor audits, and annual workers compensation audits.
- Created class tracking in QuickBooks to separate 9 restaurant locations under one business entity.
#2 Cleaning up the books for a local franchise owner
Current Giersch Group client Falbo Brother’s Pizza turned to us to help clean up a mess from a former accountant and now we've provided bookkeeping, payroll, and sales tax support for years. Read their detailed case study and testimonial.
#3 Franchise consulting services for an established brand
Our consulting group helped a 200-unit restaurant franchisor through a key transition. Following almost 50 years in business, the franchise needed to rebrand and rethink many strategies. The Giersch Group worked closely with them as they prepared this process, giving the Giersch Group further opportunity to see the franchisee from the view of a franchisor, gaining specific insights into the roles of each.
#4 Getting a multi-unit franchisee back into the black
The Giersch Group has also helped a multi-unit franchisee grow from deeply indebted to strong profitability and the acquisition of more stores, primarily through a monthly board services meeting to review monthly results, both from their own QuickBooks and spreadsheets, as well as the comparative statistics provided by the national franchise headquarters.
#5 Franchise development services starting from square one
The Giersch Group also helped a brand new franchisee start up a single unit with no prior experience in the field, setting up the books from scratch and working through the challenges of the early months of heavy discounting, accounting for coupons and promotional pricing, while running a proforma to understand the true earning potential.
Additional franchise business services from the Giersch Group
Testimonial
“Giersch Group helped me take care of many lingering issues with my former accountant, who had gone silent on us. They got us all caught up and introduced me to one of their partner CPA firms to file my taxes.”
--Kelly McClane, Falbo Bros. Pizzeria
Services we can provide for your franchise include:
Full-cycle monthly bookkeeping
We will produce a P & L, balance sheet and cash flow statement by the 20th of the following month. Your monthly financial package will include a package of key working capital, debt to equity and day sales outstanding. Our dashboard presents your business model tracking your margins month to month and year to date. We can also produce debt tracking spreadsheets, cash flow forecasting and help you understand and utilize the analytics provided to you by the franchisor. Additionally, the Giersch Group can run your weekly payroll and file sales tax.
Franchise consulting
Our consulting team has many services to offer to help you better understand how to achieve profitability, including:
- Cash flow forecasting
- Monthly board services
- Financial modeling
We also have expertise in other management consulting topics specific to your industry such as the review of franchise agreements, and royalty calculation and tracking.
Franchise mergers and acquisitions
Our mergers and acquisitions team will work with you to maximize the value of your asset. Too many franchise owners walk away with nothing, or worse yet, leave the business while still deeply in debt. We can help you focus your efforts on growing the fair market value of your business and realizing a profit when you are ready to exit.
Franchise accounting FAQ
How do you account for franchise fee revenue?
Franchise fee revenue is tracked as a separate income account located on the profit & loss statement. This revenue would be tracked by franchisee but using one income account.
How do you record monthly franchise fees in QuickBooks?
As the franchisee, your initial franchise fee would be recorded as an asset, using an investment into the franchise and should include asset items: equipment, inventory, etc.
How do you categorize franchise fees in QuickBooks?
Monthly franchise fees are called royalties and those are recorded as an expense on the franchisee’s books. A separate expense account would be set up as ‘Royalties’. This figure is usually a percentage of net sales as listed in your franchise agreement. Other fees you may incur to the franchisor would be advertising fees. If the franchisor has an advertising plan within the franchise agreement, you would again for example pay a percentage of your sales to advertising. The franchisor then pays all advertising expenses.
Is franchise an intangible asset?
A franchise is a tangible asset.
What type of franchise businesses do you work with?
We provide affordable accounting and consulting services for all kinds of business franchises including:
- Restaurants & bars
- Car dealerships
- Retail stores
- Lawn care services
- Real estate businesses
- Salons & spas
- Gas stations/convenience stores
- Insurance agencies
Whether you have a job franchise, license product distribution and/or manufacturing, work within an established business format or have an investment franchise, we have the experience and resources to help you make more money doing it.
See more bookkeeping FAQs.
Bookkeeping & accounting services for Wisconsin franchise owners
We provide accounting & consulting services for all types of franchises throughout southeast Wisconsin.
While our franchise bookkeeping & accounting services are available anywhere in the nation, our professionals primarily serve franchise owners in and around the cities where we have local offices: Milwaukee, Madison and Brookfield, WI.
Milwaukee County franchise accounting firm serving: Downtown Milwaukee, Shorewood, Whitefish Bay, Glendale, Fox Point, River Hills, Brown Deer, Granville, Butler, Wauwatosa, West Allis, Greenfield, Hales Corners, Greendale, Franklin, Oak Creek, South Milwaukee, Cudahy, St. Francis & everywhere in between.
Dane County franchise accounting firm serving: Madison, Middleton, Waunakee, Windsor, Sun Prairie, Cottage Grove, McFarland, Fitchburg, Verona, Riley, Pine Bluff, Cross Plains, Springfield Corners, Black Earth, Mazomanie, Mt. Horeb, Belleville, Rutland, Stoughton, Kengosa, Deerfield, Monona & everywhere in between.
Ozaukee County franchise accounting firm serving: Mequon, Thiensville, Cedarburg, Lakefield, Grafton, Saukville, Port Washington, Knellsville, Newburg, Waubeka, Fredonia, Holy Cross, Belgium, Dacada & everywhere in between.
Waukesha County franchise accounting firm serving: Waukesha, Brookfield, New Berlin, Muskego, Big Bend, Vernon, Mukwonago, Jericho, Eagle, North Prairie, Saylesville, Genesee Depot, Ottawa, Wales, Dousman, Delafield, Oconomowoc, Monterey, Nashotah, Hartland, Merton, Town of Lisbon, Sussex, Lannon, Menomonee Falls, Butler, Pewaukee & everywhere in between.
Washington County franchise accounting firm serving: Germantown, Hubertus, Richfield, Thompson, Ackerville, Hartford, Kirchhayn, Jackson, Cedar Creek, Slinger, Cedar Lake, St. Lawrence, Allenton, Addison, St. Anthony, Kohlsville, Wayne, Kewaskum, Boltonville, Fillmore, Cheeseville, Young America, West Bend, Nabob and everywhere in between.
Free franchise accounting consultation
The Giersch Group is different from other franchise accounting firms. We pride ourselves on providing enterprise-level services at prices real-world business owners can afford. If, after a free consult, you decide to move forward with us, services and billing will be based on a budget we come up with together. The goal of our accounting and consulting services is to empower franchise owners with meaningful financial analysis and skills to help them succeed. All services from the Giersch Group are available 100% online to franchises nationwide.
You owe it to your financial future to learn more. Request a no-obligation initial consult today.
Frequently Asked Questions:
What are the benefits of hiring a bookkeeper for my franchise business?
Monitoring your income and expenses are crucial to maintaining profitability and making sure your franchise is sustainable. Hiring a bookkeeper to do your accounting also means you don’t have to worry about incorrectly reporting your finances.
Should I hire a bookkeeper if I’m only a franchisee?
Yes. You still run and operate a business as a franchisee, so steady record keeping of your finances is very important to ensure profitability for you and the franchisor.
Can I pick and choose what services I’d receive for my franchise business?
Yes. We can do everything from managing all your books and keeping track of your finances to just offering professional advice and guidance to clean up your existing books and ensure profitability.
Which factors affect a franchise's cash flow most?
Franchises generally face recurring costs in the form of franchise fees, debt repayment and high volumes of staff. Giersch Group understands that every penny counts and margins tend to be very thin. We can provide timely, accurate financial statements so your business can continuously turn a profit.
Do franchises have special accounting needs?
Franchises have unique fees and expenses that aren't present in non-franchise situations. We have expertise in calculating franchise fees (including royalties & advertising fees), weekly sales tracking for multiple locations by owner, verifying royalties submitted by the franchise and evaluating sales reports chainwide.
Is franchise consulting helpful?
Yes. The Giersch Group team has many services to help you better understand how to increase profitability. We can help with cash flow forecasting, monthly board services, financial modeling, franchise mergers, acquisitions and more.
