As the owner of a franchise restaurant, it is your responsibility to keep track of your financial transactions to prevent any sort of fraud from taking place. You can fulfill your responsibility by either hiring a full-time accountant or outsourcing to bank reconciliation services.
Bank reconciliation refers to a process which is used to understand and bring together two different activities performed at different times into a single framework. The tool typically used for this purpose is a bank reconciliation statement, which is a summary of banking and business activity that reconciles the bank account of a business with its financial records. Activities affecting a bank account for a specific period—such as deposits and withdrawals—are outlined in the statement.
Bank reconciliations are important because not performing them at periodic intervals can affect operational efficiencies, put pressure on regular credit requirements, and cause a major discrepancy between the actual financial position and perceived financial position of your franchise restaurant.
How Accurate Bank Reconciliation Can Benefit Your Business
Bank reconciliations for franchise restaurants make sense because regularly reviewing accounts can help a business to identify problems before they get out of hand. By performing bank reconciliations regularly, you can determine the disparity between the amount displayed in your franchise restaurant’s bank statement, and the corresponding amount that shows up in your restaurant’s own accounting data at a particular point in time. There are several ways regular bank reconciliations can benefit your business, including:
- Eliminating accounting errors—Bank reconciliation can keep your bookkeeping identical to what is recorded at your bank.
- No More Surprises—By regularly reconciling your account, you can keep track of all transactions, ensuring there are surprises hitting your account
- Keep Your Business Deposits Accurate—You can keep your business deposits correct with regular bank reconciliations
- Save Money—By identifying bank fees and other hidden expenses you might not know you are paying, bank reconciliation can help you save money.
As seen above, there are several benefits of performing regular bank reconciliations, but sometimes preparing a bank reconciliation statement on your own can be difficult. In this instance, outsourcing bank reconciliations for franchise restaurants can save both time and money.
Why It Makes Sense to Outsource Bank Reconciliations for Franchise Restaurants
Bank reconciliations help to ascertain that a discrepancy in an account is due to error and not timing. Additionally, dependable bank reconciliation ensures an accurate viewpoint on business financials while providing protection against fees or damages that result from a lack of compliance.
Outsourcing to bank reconciliation services can ensure that the records of your franchise restaurant business are updated as close to the real-time basis as possible. Other reasons to outsource bank reconciliations for your franchise restaurant include:
- Better and more efficient maintenance of book of accounts
- Quickly rectifying any discrepancies
- Less paper work leading to reduce confusion
- Detection of fraudulent activities
- Avoiding overdraft
- More time to focus on core competencies
Considering Outsourcing Bank Reconciliations for Your Franchise Restaurant Business?
At Global Shared Services, we offer bank reconciliation services that your franchise restaurant can depend on. With us, you get high-performance, end-to-end reconciliation services that you can trust. These services are delivered by a team of experienced professional and tailored to the needs of your restaurant business.
Outsourcing your franchise restaurant’s bank reconciliations to us will provide you with streamlined processes and the ability to scale through operational efficiencies.
To learn more, get in touch with us today.
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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