As per the Franchising Australia 2016 survey, franchises accounted for 4% of all small businesses in Australia, many taking their brands to overseas markets.
To kickstart your franchise and stay afloat amidst such tough competition that the Australian franchise industry presents, you need the best accounting services. The experts at accounting franchise in Australia will help you with your business structure, accounting, and everything you need to have a thriving franchise. Here are some key reasons that can convince you to engage a trusted accounting service agency, ensuring you have a grand opening for your franchise in Oz.
Better Cash Flow Management
Recent statistics show that the average total franchise cost for non-retails in Australia starts from nearly $60,000. On the other hand, the retail franchise costs amount from a whopping $287,500.
When you need to deal with such massive amounts, you should have the right cash flow management system to ensure your franchise exceeds profits. An accounting specialist will help you understand your budget, covering aspects like royalties, wages, and monthly rents, thus keeping your franchise finance healthy.
Better Debt Management
According to NRA, Australian franchises have a 20% failure rate, with the industry facing severe debts in recent years. Experts believe unfair contracts and regular dodgy operators are the prime reasons for creating a debt situation for many Aussie franchise businesses.
As a new franchise, you would wish to have minimum possible debt against your profile. With the help of an adept franchise accountant, you can manage your debt-related costs better. They ensure you don’t miss payments, thus avoiding late payment fees.
Better Employee Management
A leading cheesecake franchise recently won the Australian Established Franchisor of the Year. It revealed that the commitment of its 50-odd staff with 8 ½ years experience helped them succeed.
For establishing your franchise, you need to hire and train employees quickly. Experienced specialists in accounting franchise in Australia can help you manage employee payments and expenses, thus saving you considerable time and effort.
Accounting Franchise Service Specialists Act as ASIC and ATO Agents
The ASIC monitors the compliance of companies with Australian regulations and the Corporation Act 2001 (Cth). On the other hand, the ATO ensures franchisors comply with relevant tax and excise related legislation.
When you hire professionals, they deal with ASIC and ATO regularly, ensuring your business adheres to the Code of Conduct and regulations set by ACCC.
Accounting Franchise Services Help in Tax Planning and Structuring
If your franchise engages employees, you have to provide workers’ compensation coverage and are liable to state payroll tax. The corporate tax in Australia is usually 30%, while trading in goods and services incurs a 10% GST.
Top accounting service providers offer tax management, preparation, and filing of annual tax returns, ensuring proper tax planning for your franchise.
Experts believe that the COVID-19 outbreak and subsequent trading restrictions will lead to an annualised decline of 2.7% in the franchise industry in the coming years. It is best to enrol a reputable franchise accounting service agency in Australia to help you at every stage, from BAS, bookkeeping to filing tax returns. The domain specialists of accounting franchise in Australia will help keep all finances in place to start and run a successful franchise even in such desperate times.