Outsourcing financial services is an increasingly common choice for franchise restaurants.
That’s because, in the modern marketplace, outsourced financial services for franchise restaurants make sense across a wide variety of business contexts. That’s a relatively new development.
Two decades ago, the cost of outsourcing was prohibitive and technology hadn’t progressed to a point that made the logistics feasible at a wide scale. Even 10 years ago, outsourced accounting was mostly relegated to extremes of big business on one side and shoddy service on the other.
Today, the market has evolved. Financial services and accounting for franchise restaurants can be outsourced efficiently and effectively – and, in fact, outsourcing is now the right decision across a majority of contexts.
Below, we’ll take a look at a few, as we answer the question that franchisees are asking more and more frequently:
When should I outsource financial services?
When the current financial service solution is causing problems.
If your current financial service is causing issues, switching to an outsourced provider makes sense.
Traditionally, franchise businesses have relied on internal accounting departments, for reasons that we’ve discussed in more detail here. Sometimes, internal departments are capable accounting experts; sometimes, that’s not the case. If there are regular errors in internal work, or if work is delivered behind deadline, or if work doesn’t comply with franchise requirements, the need for a switch is obvious.
The reality, though, is that even the most capable internal solutions are bound by unavoidable limits and will eventually run into problems.
Internal solutions can’t scale as quickly. Internal solutions can’t access a diverse team of experts. Internal solutions can’t have comprehensive knowledge across the complete spectrum of financial services (or, if they do, they’re at the upper fringes of a corporation-CFO level and are probably priced accordingly).
As a result of those limitations, internal financial service solutions run into problems when they’re faced with more or more complex work. While the threshold might vary, there’s no getting around it in the long run.
When compliance with franchise regulation is essential.
Put simply, the best outsourced financial services for franchise restaurants nail compliance.
That’s because they’re well-versed in the industry. While a more general, regional accounting service might be adept at creating financial statements, it’s rare that a general firm is adept at navigating franchise brand guidelines. It’s just not the water they swim in.
When compliance to franchise requirements is essential, choosing a service with experience in the industry (and, ideally, experience that’s on-brand) makes sense.
When you’re looking for increased efficiencies across your business.
This is something we’ve written in more detail about, too: outsourcing financial services for franchise restaurants streamlines operational efficiency.
Why? It’s lower cost. It’s faster. And it unlocks the ability to scale by granting access to a team of experts.
When you have multiple franchise units or are planning to scale.
Speaking of scaling – that’s another context where outsourcing makes sense.
We’ve found that internal franchise service departments typically require one person per three locations. At Global Shared Services, we’re typically able to service up to four times that bandwidth per person at a lower cost. Why? It’s due to operational efficiencies and optimized teams; via outsourcing, subject-matter experts are able to drill down into certain types of tasks, as opposed to being made to switch between varying types of tasks as an internal generalist would do.
At the end of the day, that leaves franchises with a greater ability to scale up accounting services when it’s time to open a new location.
When more complicated financial situations arise, such as mergers, acquisitions, or equity considerations.
The best outsourced financial services for franchise restaurants offer access to experts – people who can lend backup and insight to complex financial situations where otherwise there would be none.
An internal financial services department can rarely provide that.
That’s unfortunate, because one of the greatest factors in business success is high-level financial expertise. Major financial decisions can make or break a business; botch the merger or acquisition, and your franchise business will be a sinking ship. Having an expert on your side can help you to get the best out of a complicated deal.
When You Outsource Financial Services, Choose GSS
With expertise in restaurant brands, dedicated and open communication, and a deep knowledge of financial services, our outsourced services can unlock your ability to scale and give you access to the expert insight you need to make sound financial decisions.
Looking to optimize your franchise business? The time is now. Get in touch with us today for a free consult, and let’s discuss how outsourcing can take your organization to the next level of efficiency.
You should have access to experts.
Founded in 2003, we’ve worked with large corporations and small-to-medium businesses alike. Here’s what we’ve learned: access to expert financial and accounting services is a major factor in a business’ ability to succeed and scale. We believe that it shouldn’t be restricted by location or company size. Our mission is to empower restaurants and technology firms with that access.
With GSS, we meet our franchisor requirements on time and with accuracy. The local CPA could not handle our volume. We are so happy to have made the change. GSS knows our business and our franchisor requirements.Multi-unit fast sandwich Owner