6 Tips for Better Franchise Financial Reports in Any Industry

Franchise Financial Reports

Accurate and comprehensive financial reporting is key for any franchise’s success. Without a certain standard of reporting in place, all marketing, territory expansion, and product development is reduced to guesswork. On the other hand, maintaining detailed financial metrics gives you the data needed to cut wastage and optimize sales, marketing, and product or service development.

Today’s post outlines 6 tips for better franchise financial reports, with particular focus on how FranchiseSoft financial reporting software for franchises can help.

1. Factor in everything that matters.

One of the most egregious mistakes one can make with reporting is to omit vital data. Your franchise’s financial reports should include:

  • Balance sheets. Profit and Loss (P&L) statements are important, but they won’t tell the whole story in the event of a cash flow crisis. Balance sheets help you understand the entire picture, detailing your franchise’s net worth, liquidity, and liabilities. Managing the balance sheet is especially important for franchisees and franchisors looking to grow their businesses.
  • Income statements. Income statements detail sales, gross margin returns, franchisee salary figures, marketing investments, financial management, and overall profitability given the level of assets involved in the company.
  • Cash flow statements. This statement shows how changes in your balance accounts and income have affected cash and “cash equivalents,” then breaks the analysis into operating, investing, and financing activities.
  • Analyses. Obviously, the most important part of your franchise’s financial reports will be the analyses, which helps us understand balance sheet dynamics, and specify assets used to generate profit, including fixed assets and working capital. For best results, your analyses should integrate metrics from your point of sale systems, rosters, inventory lists, budgets, and other business books into a single report.

FranchiseSoft makes this tricky data integration easy by consolidating key metrics into simple reports, accessible through simple dashboards on any mobile device. Moreover, we automate much of the busywork, with the option to upload invoice data straight into your business books.

2. Make time for reporting.

This point may seem obvious, but failing to make time for comprehensive financial reporting is a recurring mistake in the franchise world. Business owners sometimes feel that spending time on finances takes away from more valuable business activities – nobody wants to waste time counting their money when they could be out making more, after all.

But reporting is crucial, with the quality of financial data often being the difference between knowing whether your company is facing a challenge or an opportunity.

Of course, we cannot create more time out of thin air. Eliminating wastage and redundancy is better, which is exactly what FranchiseSoft was built to do. Informed by years of franchise ownership, our financial reporting software automates everything it can, and optimizes everything it can’t, thereby speeding up the reporting process.

3. Familiarize yourself with key business drivers.

You could have the best financial reporting software for franchises ever developed, but it wouldn’t matter if you don’t understand key business drivers. This is a major problem, especially for the “cruise control” franchise owner crowd – they pay for great reporting, but haven’t the foggiest idea what half of those stats mean.

FranchiseSoft’s support service can help you understand reports in detail, identifying key performance metrics and explaining what they mean for your company. If you don’t have access to FranchiseSoft support, you should ask your accountant or business advisor to walk you through all the numbers at the very least.

4. Develop benchmarks that matter to you.

Every industry, business owner, and brand vision is different, which means no two people’s goals will be identical. Knowing that, why would you plan your company’s unique development using somebody else’s benchmarks?

When shopping around for financial reporting software for franchises, be sure that your chosen system is fully customizable. FranchiseSoft lets you tailor your entire software experience. Arrange the dashboards any way you like, and develop financial reports that focus on what matters most to your business.

Want to learn more about FranchiseSoft? Request a free demo.

Our financial reporting software for franchises was made by and for franchisors and franchisees. Learn more at http://www.franchisesoft.com.

Franchise Development Software Red Flags to Watch For

Franchise Development Software

Implementing franchise development software is one of the best ways to ensure the ongoing success of your brand’s recruitment efforts.

And yet, while most franchisors are aware of the hypothetical value of franchise development software – better organization, reporting, intra-franchise communication, and marketing, to name a few major benefits – these same individuals often lack the technical background to distinguish the good software from the bad.

This is a major problem when you consider just how much franchise development software is out there – a quick Google search yields half a million results!

Today’s post is meant to make your franchise development software selection easier. Whether you’re choosing a new development system or evaluating your current one, knowing what red flags to watch for is the only way to ensure you’ve got the best tools to grow your brand.

Read on to learn four red flags to watch for as you research franchise development software options.

RED FLAG: Limited user customization.

Franchise development software has to be flexible if it’s going to be successfully deployed across multiple industries. This means dashboards, outreach templates, and reports need to be fully customizable, especially if you intend to automate processes that are unique to your franchise system. Accordingly, rigid, one-size-fits all software with limited capacity for individualization should be considered a serious red flag.

RED FLAG: No consolidated communication tools.

Today, the majority of people walk around with at least one mobile device for texting, email, and voice calls on-hand at all times, so the idea of building another communication channel into your franchise development software might sound unnecessary. However, franchise development efforts require a lot of outreach, lead follow-up and prospect interactions, which can quickly get lost in the shuffle of texts, emails, and calls from friends and family.

Rather than thumbing through 3-4 different apps to find the lead, broker, or franchise family member you needed to follow-up with, quality franchise development software consolidates all these threads into a single app. Access leads, details, contacts, calendars, and brokers from the same dashboard, saving you a lot of thumb-action, improving franchise lead response times, and saving your attention for what really matters – growing your brand.

FranchiseSoft offers consolidated communication tools, and even gives users a One-Stop feature that integrates all recruitment and production activities into one platform, thereby eliminating the need for third-party software or add-ons.

RED FLAG: Clumsy or complicated reporting.

Franchise development relies on quality insights into workflows, campaigns, sources, communications, and the efficacy of the sales funnel. Without clear reporting on metrics that matter, your franchise development is reduced to “the blind leading the blind.” Moreover, reports need to be easy to generate, if not entirely automated; we can’t spend hours a day on basic data entry and calculations that detract from the very performance we’re trying to measure and improve.

In short, any franchise development software with labor-intensive or complicated reporting should be avoided. FranchiseSoft uses auto-generated pipeline reports, sent automatically to your email in a clear, concise report that highlights key performance indicators (KPIs) so you can review and recalibrate your franchise development strategy on the fly.

RED FLAG: Poor website design for your software provider.

Though not directly related to the functionality of your chosen franchise development software, the look and layout of the provider’s website is an early clue that tells you what you can expect with the final product. If the developers can’t put together a website that’s well-organized, responsive, and easy to navigate, what are the odds that their software will be any better?

Visit http://www.franchisesoft.com for an example of the site quality you should expect from a reputable provider, or just Google “franchise development software” to find us on page one. Note the intuitive design, visible contact forms and social buttons, quick load time, and clear/concise information. Anything less should be considered a serious red flag!

On behalf of the FranchiseSoft team, we hope this brief guide comes in handy as you look for franchise development software that’s right for you. Visit the link listed above to learn more about our software or book a free demo.

Our Franchise Clients