As a Franchisor, have you ever wondered how a standardized software system for your franchisees can help with best practice.
It is crucial for businesses to abide by their best practice codes; even more so when you’re a franchise business when consistency is all part of the genetics. So putting processes in place to ensure this happens is second nature to a Franchisor; but what about processes when it comes to franchisee accountability?
This sounds simple, as in theory, you’re sharing your brand, business model and expertise and expect results in return, however, in reality, it is incredibly difficult and one of the things that can add to this challenge is the lack of the correct tools that makes knowledge sharing and in turn, reporting easy for all.
You know the best way to do things as you’ve worked this out through trial and error. Now sharing best practices throughout your organisation is vital for continuous development. The main objective is for your franchisees to recognise that there is a superior way of doing things to obtain and maintain maximum performance levels but how to go about it?
The innovations of accounting software and related solutions such as Sage, Xero and quickbooks is playing a major role in assisting Franchisors.
Especially now that Making Tax Digital (MTD) has been extended to all VAT-registered businesses within the UK by HMRC, whereby more people are moving away from spreadsheets and paper records. But, not all people are confident in how to use this technology and again, what platforms to trust, all the time being mindful that you’re using HMRC ‘compatible software’.
HMRC has been clear that if a business cannot go digital for whatever reason, (exemptions apply surrounding age or remoteness of location for example), then it is not obliged to do so; however, this could prove a bigger headache for Franchisors as you need to be sure that everyone is on the same page. Even with 100% of your franchisees keeping digital records, levels of technical comprehension will still vary from one to the next, so which-ever piece of software you choose, it’s important to still have your accountant behind you, to support you and your franchisees through the transition and alert you to any anomalies.
Used correctly, platforms such as these enable you to analyse statistics, and alert you to any red flags that might arise; partnered with a trusted accountant’s ability to interpret data efficiently and effectively will ensure that you are always two steps ahead. Making the day to day running of the business from a franchisee perspective more attractive as they can get on and do what they do best without worrying about the admin as these systems eliminate the need for separate books or records. These new innovations help both you and your franchisees react in real-time, be flexible and work remotely in a post-covid world, whilst maintaining full control of your business.
In summary, the role of technology has transformed the sector with newer and advanced software and its ability to ensure accuracy and reduce errors, which combined with the help of your trusted accountant helps businesses avoid tax penalties and other issues as well as organise audits in a more efficient manner and ultimately maintain best practice.