Many people decide to buy a franchise because it comes with so much support and in-built systems and procedures. It can be a great option if you don’t want to build a business from the ground up. However, buying a franchise can be a major expense with serious financial and tax consequences if it doesn’t work out. If you want to become a franchisee, start by getting expert business and tax planning advice from a Vault franchise accountant.
Process For Buying A Franchise
The process of buying a franchise is a bit like a journey and tends to follow these steps:
- Make an initial inquiry about the franchise.
- Receive documents and information from the franchisor or broker.
- Start your due diligence and get a pre-purchase review done.
- Get legal advice if you decide to proceed.
- Submit your bank loan application and open business bank accounts.
- Develop a business plan for the franchisor and the bank.
- Set up your business structure, and registrations with the ATO and ASIC.
- Set up accounting systems and recordkeeping processes for the business.
- Do your franchise training, employ staff, open and launch.
It looks like a simple process but there are potential pitfalls at every stage of the process. You need to make sure your franchise is set up correctly from the start to avoid financial and tax problems later. The pre-purchase review is particularly important, as it covers the financial aspects of the franchise. At Vault, our franchise experts have worked with many new franchisees to set up and operate a successful business. We will help you with business planning and tax planning, as well as systems and future proofing. We want your franchise to succeed as much as you do!
Running Your Franchise
Once you’re up and running, you’ll need to stay on top of your taxes and franchise accounting. That’s where we really shine. Our Vault franchise accountants have worked with a wide range of franchise owners. There aren’t many situations we haven’t faced. At Vault, we believe that accountants should do more than prepare financial statements. We want to become an invaluable member of your franchise and help you with every aspect of your business journey. We’ll help you with the bookkeeping and accounting, including BAS and tax returns. We’ll also look after your ongoing compliance. When you have Vault on your side, you can focus on making your new franchise a success, knowing that we’ve got the tax and accounting side of things covered. we’ll stay in contact with you so you never wonder how your finances are going.
Franchise Accounting, BAS And Tax Returns
Our franchise accounting team will take care of your:
- monthly report (profit and loss, balance sheet)
- business activity statement preparation and lodgement
- end-of-year tax returns and financial statements.
We use Xero because we strongly believe this is the most useful and flexible accounting system for franchises.
At Vault, we do a lot more than just accounting. Our business advisory specialists have a wealth of knowledge to share with you. When you partner with us, you get access to some of the best minds in business. We will help you manage your new business better and truly understand your finances. This work includes:
- managing your profit and cashflow
- meeting with you regularly to discuss your business performance,
- meeting with you each year to plan out the year ahead.
We can even help you develop an exit or succession strategy for your franchise.
Want To Know More?
If you’re new to business, a franchise can be a great option, but you need all the support you can get. Vault will be by your side from your initial query through to your exit. You don’t have to do this alone.