Hiring a CPA When Establishing a Franchise
For some people, being a franchise owner is a dream come true because as an entrepreneur, you get to run your own business without starting from scratch. However, it’s always best to hire a Certified Public Accountant (CPA) who has experience with franchises to make sure your accounting needs run smoothly. Here are some ways a CPA can help.
Accounting Needs
When establishing a franchise, there are many parts to the financial data that need to be tracked and analyzed, including revenue, expenses, assets, and liabilities. A CPA can help you understand franchise accounting concepts as well as prepare financial reports, file taxes, and handle payroll.
Franchise Financing
A CPA can assess your financial health so you can evaluate your assets and liabilities to determine your borrowing capacity. They can also help with obtaining financing for a franchise by providing guidance on funding strategies and options.
Compliance Requirements
It’s critical that a franchise stays compliant with regulations and meets all necessary reporting requirements. A CPA who is familiar with the systems and contracts associated with establishing a franchise can help ensure all compliance obligations are met. CPAs will also ensure the franchise is in compliance with State and Federal law when filing monthly or quarterly taxes and will also assist with year-end employment tax documents and payments.
State and Federal requirements are the most complex and the least forgiving when it comes to filing and paying on time, so it’s imperative that you have a CPA by your side to review documents for accuracy and timeliness to avoid penalties.
Understanding Your Investment Requirements
When establishing a franchise, it’s important to know that there is a financial commitment from the start that includes the initial franchise fee, royalty fees, and marketing expenses. A CPA can help you leverage your personal assets to help finance a franchise.
Franchise Strategies
A CPA can review the Key Performance Indicators (KPIs) for the business help as well as help the franchisee come up with strategies for managing cash flow. CPAs can also regularly review the debt structure and help make the proper adjustments to keep the business performing efficiently.
JTS Associates is Here to Help With Your Franchise Needs and Requirements
At JTS Associates, Inc. we work closely with franchisees to help them establish their franchise and ensure they meet all requirements so that their business can get started without any setbacks. From our advisory and consulting services to our assistance with tax planning strategies and financial reporting, our team of CPAs will help guide you so your franchise can be as successful as possible.
Schedule a consultation today by filling out the form or calling us at (516) 877-5900.
