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.
Franchisees suffer additional EU VAT burden
Carl Reader, Dennis & Turnbull Ltd
Any UK franchisees or franchisors who supply services to EU based customers will be subject to an additional burden due to changes in the EU’s VAT rules.
Effective from 1 January, the rules state that businesses must declare any services provided to VAT registered customers in the EU. This is effectively an extension to the existing EC Sales List that businesses are required to prepare.
Stephen Alambritis of the Federation of Small Businesses said: “We would urge the government to look at this regulation and make sure that we are not gold-plating the European requirements. In a year that is all about recovery, it is important that we don’t stall it by landing more paperwork on small businesses.”
This could particularly affect franchisors who provide supplies to EU based franchise holders, and as such all affected parties should ensure that they have structured their systems appropriately to facilitate the easy retrieval of this information.
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.
Franchisees should be mindful of Tax deadlines
Carl Reader, Dennis & Turnbull Ltd
Franchisees should by now be aware that their Self Assessment Tax Return is due for filing by 31 January of each year, through online filing. The deadline for this is fast approaching and it is essential that this deadline is met to avoid penalties and surcharges.
Sarah Walker of HM Revenue and Customs (HMRC) said: “If you haven’t yet sent in your 2008-09 tax return, you need to start thinking about it now.”
You can file your tax return online at http://www.hmrc.gov.uk, or if you have an accountant they should be able to deal with this for you and ensure that the return is submitted correctly and in time.
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, finance, franchise, franchise business, franchisee, taxation
