How to Choose a Franchise Accountant

A franchise accountant is an important member of your franchise team. In fact, a franchise accountant should be one of the first members of the team, even before the franchise agreement is entered into.

By obtaining the services of a good franchise accountant from the very beginning, you will already be ahead of the game. The franchise accountant can read the Franchise Disclosure Document (FDD) which gives detailed information on the franchiser, especially in terms of financial matters, and other documents that are pertinent to a franchise agreement. The franchise accountant can also obtain profit and loss figures, tell you whether or not any fees you are being charged are unreasonable, and provide other financial advice.

Once you have entered into the franchise agreement and begun operations, the accountant should remain a team member. He can assist or completely assume the responsibility of preparing monthly reports, handling payroll, preparing tax reports, and other accounting duties.

So, how do you know which franchise accountant to choose? You can start by asking some questions such as the ones below. If you think of others, by all means ask them, too.

•Is the accountant familiar with financial issues as they pertain to a franchise?
•Does the accountant have a background or experience in franchise accounting?
•Is the franchise accountant a Certified Professional Accountant?
•Does he charge a flat rate for certain accounting duties and hourly fees for others? For example, does he charge one fee for preparing the payroll and another for preparing tax returns and reports? Are both flat rates and the hourly fees reasonable? (Remember, it’s OK to “fee shop”, but make sure you get all the services you need.)

You might also want to consider the feasibility of hiring a franchise accountant to work solely for you. If you must use an accounting firm because of budget constraints, however, try to have a particular accountant assigned to your franchise so that you will always be dealing with the same person. This will provide an extra measure of security for your business and financial records.

Also, even if you have a family member, relative, or close friend who is an accountant, think about whether or not you want that person to have access to your financial information. Even the most trustworthy person can occasionally let something slip; however, you have better control over how far the information gets if the franchise accountant is unrelated or not a personal friend.