Bookkeeping Software for Franchise Businesses
Carl Reader, Dennis & Turnbull Ltd
As franchise accountants we see a variety of software packages used by franchisees. The two distinct types of package are online and offline.
Online accounting packages
There are now a number of cloud-based accounting packages available. These allow franchisees real-time access to their data, anywhere in the world. Specifically, companies such as Xero and Azura have developed franchise accounting packages that can be used by franchise networks.
Offline accounting packages
If a software system is required by a franchisor, it is often still an offline package. The most commonly used small business packages are Sage and Quickbooks. These systems rely on the user working on the PC that the software was installed on.
Which package should I use?
You should first check with your franchisor whether they have enforced any franchise accounting packages within your franchise agreement. If so, you have a contractual requirement to use this.
If you have free reign to choose the software, I would suggest obtaining trial versions of both online accounting packages and offline accounting packages, to see which kind of interface you prefer.
Pricing of franchise accounting packages
You will need to consider the pricing model of each. Often, online accounting packages are offered on a monthly subscription basis, whereas offline accounting packages are offered as a one-off cost, with potential upgrades.
You also need to consider the backup and upgrade requirements of offline software. With online packages, changes in legislation such as the recent change in VAT rates are automatically taken care of. However if you use an offline package you will need to ensure that any changes are made yourself.
Carl Reader is the head of franchising at franchise accountants Dennis & Turnbull, a leading firm of accountants in the franchise industry.
The above information is provided as general advice and no liability is accepted by the author, Dennis & Turnbull or Select Your Franchise in respect of individuals or businesses acting on the above. Independent advice should be sought in all circumstances.
Tags: carl reader, franchise accounts, Franchise Finance
February 26th, 2010 at 12:22 am
You might want to look at saasu.com too I hear they have a neat slice of many of the major franchise systems now using them (fast food, pharmacy, bookkeeping, health, etc). The control structures and reporting are designed from the ground up for franchisee or franchisor control too. Cheers, Pete.