Accounting for Franchises in Calgary & Vancouver
A franchise is a system consisting of two or more people that provide goods and services to customers. Through a franchise system, other parties – either individuals or businesses – can contact the primary office or owner and request that they operate under the company’s name with permission.
Accounting for franchises can be a complicated issue because franchises are very different from standard corporations. Taxation for franchises is also subject to different rules and regulations that your accountant must adhere to.
How Can MMTCPA Help You?
If you run or are part of a franchise, we can help establish and legitimize your company by assisting in the following areas:
Franchise Reporting Requirements
Franchises are subject to taxation and reporting requirements just like every other business, but the rules are a bit different. They can change depending on how much you earn in a given year. If you did not garner any earnings and have no recordable transactions, you’ll likely owe no taxes, but you’ll still be required to file within your state or country.
Your franchise may be subject to specific tax regulations if it earned more money than it spent. This is no different for any other business or contractor, but franchises carry different tax-related fees depending on their locations.
We can help you by deciphering the specific tax laws for your franchise depending on where your head office and subsidiaries are located.
Your venture will be required to adhere to strict regulations. Ignoring these rules or failing to commit could result in things like fees, penalties or even suspensions.
It’s important to understand all the legal requirements of operating a franchise before committing. We can go over all compliance issues your franchise might face and put together a plan of action regarding how to tackle them.
Your franchise has several financing options available. Some of these options include:
- Private investors
- Traditional bank loans
- Government-based grants and funding programs
One of the great things about starting a franchise or any business today is that there are more ways to earn the money you need. However, franchises can come with specific fees (i.e. a franchise fee, business and market fees, etc.) that could put dents in your budget if you’re not prepared.
We can examine all potential doorways open to you. We’ll increase your chances of garnering cash with the lowest interest rates, so you won’t have to worry about running over your budget early on.
One of the most important things for your franchise is to maintain cash flow. Without a regular income stream, your franchise will come to a halt.
We can examine your budget and create a plan regarding how you can market to customers and garner as much business as possible without having to spend too much. It costs money to make money, but we’ll work hard to make sure you spend as little as possible while consistently increasing your earnings.
Having cash flow is important but keeping it up will depend largely on your financial performance. This means maintaining your debt and keeping what you owe to a minimum while raking in money regularly.
We can decipher ways to help your company maintain its financial stability, so you don’t have to worry about diving into your own pocket to ensure your franchise stays afloat.
Have A Question? Need A Quote?
Contact us to find out how we can help your business reach its potential.