How To Increase Brand Revenue Using Franchise Accounting Software
Today’s post reviews business accounting research to highlight some of the different ways that franchise accounting software has been shown to save time and money for all types of organizations.
Research Supports Use Of Franchise Accounting Software
This was their main takeaway:
“The biggest impact IT has made on accounting is the ability of companies to develop and use computerized systems to track and record financial transactions. Paper ledgers, manual spreadsheets and hand-written financial statements have all been translated into computer systems that can quickly present individual transactions into financial reports. Most of the popular accounting systems can also be tailored to specific industries or companies. This allows companies to create individual reports quickly and easily for management decision making” (Ghasemi et al., 2011, p. 113).
Other key capabilities of franchise accounting systems highlighted by Ghasemi et al. (2011) include:
- Greater functionality–Researchers focused on the increased “timeliness of accounting information,” which means your franchise gets vital metrics sooner, so you can respond to threats and opportunities faster than the competition. Franchise accounting software was also recognized for its ability to increase user access to multiple report types, including cash flow statements, departmental profit and loss, and market share reports.
- Improved accuracy–Researchers noted the “internal check and balance measures” franchise accounting software uses to ensure that all transactions and accounts are properly balanced before preparing statements. Crucially, franchise accounting software also does not allow journal entries to be out of balance when posting, which guarantees that individual transactions are recorded properly.Perhaps the greatest benefit to accounting accuracy comes from the fact that software limits the total number of accountants that have access to financial information. As Ghasemi et al. (2011) write, “less access by accountants ensures that financial information is adjusted only by qualified supervisors” (p. 114).
- Faster processing–Researchers also confirmed franchise accounting software has positive effects on processing speed, which provides a number of ancillary benefits. Quicker processing times for individual transactions means less time is needed to close out each accounting period, which lessens the chance of bottlenecks during month or year-end closing periods.
- Better external reporting–”Reports issued to outside investors and stakeholders have been improved by computerized accounting systems” (Ghasemi et al., 2011, p. 114).
How Franchise Accounting Software Works For Businesses Of Any Size
We designed our franchise accounting software to work for businesses big and small, but you don’t have to take our word for it. Entrepreneur magazine published a great article this year about franchise accounting software being an essential part of running “MSMEs” – micro, small, and medium-sized enterprises.
Author Rajesh Gupta highlighted the following small-to-medium business benefits:
- Increased efficiency. “Accounting software helps to increase efficiency as it has the ability to manage account receivables, accounts payables, and general ledger, among others,” Gupta writes. It greatly reduces the risk of error when working with complex and tedious calculations, and saves countless hours that would otherwise be wasted digging through paperwork or combing over spreadsheets.
- Improved cash flow management. One of the biggest problems that businesses big or small may face is cash flow issues.“While sometimes that’s a result of the economic downturn, more often the culprit is poor planning or lack of a thorough, organized accounting process,” Gupta writes. Using franchise accounting software for your small or medium-sized business provides new levels of insight into the cash flow and payment processes, and also calculates everything automatically, cutting accounting areas down to negligible levels.
- Reduced overall costs. “The benefits resulting from the speed and efficiency of accounting software often go hand-in-hand with a reduction of overall costs,” Gupta writes. Franchise accounting software allows employees of small and medium-sized businesses to streamline payroll and administration duties. This allows them to accomplish more in a given time, effectively adding free labor hours to every work week. The added control and quality assurance that franchise accounting software provides can also make it “so that businesses will not be required to outsource finance management to an external expert.”
- Ease of tax filing. Tax accounting can be a complicated and time-consuming task for MSMEs, but franchise accounting software can help. As a matter of fact, FranchiseSoft is the preferred franchise accounting software for America’s Favorite Insurance & Tax.“Today, the accounting systems are so comprehensive that they lay out every detail required to comply with taxations laws, for example, TDS compliance with Tally,” Gupta writes. “They also comply with tax office rules through formatting invoices automatically, so you won’t face headaches during tax season.”Think of all you could accomplish with the time our franchise accounting software saves you.
- Digital invoices. In addition to the money you’ll save on paper invoices and commutes for face-to-face payments, digital invoices are now the preferred option among the majority of clients, which could make your services more appealing and help you close sales.
- Security and protection. “Company’s financial data is the most valuable information and must be prevented from falling into the wrong hands or getting lost,” Gupta writes. It’s another universal truth, and another point for FranchiseSoft’s value for MSMEs. Our franchise accounting software stores your most valuable data on private and secure digital servers that can only be accessed by authorized personnel. It’s safer and more efficient than traditional filing, and it could save you thousands in liabilities.
Franchise Accounting Software Is Even Used To Manage Government Financial Systems
An intriguing 2015 report by the Journal of the EMerging Trends in Economics and Management Sciences sought to explore the impact of computerized accounting systems on financial reporting in the ministry of local government in Rwanda.
These were some of their key findings (Murungi & Kayigamba, 2015, p. 263):
- 31% increase in accurate and comprehensive results
- 31% increase in speed in handling transactions
- 15% increase in perceived availability of information
- 38% increase in quality of financial reports
- 31% increase in quick service delivery
- 31% increase in reporting accuracy
While these findings have only limited carryover to franchisors, they do highlight the reliability, scalability, and cost-efficiency of franchise accounting systems. If they were good enough to organize local government in 2015, modern franchise accounting software can handle anything your business can throw at it!
Free Virtual Franchise Accounting Software Demo
Call 888-302-3676 or fill out the contact form on the FranchiseSoft website to book a free virtual demonstration and find out more about how our franchise accounting software can save you time and money.