BooXkeeping

Managing finances across multiple franchise locations is no small task. From tracking profitability to ensuring tax compliance, bookkeeping can quickly become overwhelming for multi-unit operators.&nbsp; According to&nbsp;<a href="https://www.linkedin.com/in/mikegreenblatt?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-top-5-bookkeeping-challenges-multi-unit-franchisees-face-and-how-to-overcome-them-2728743" target="_blank" rel="nofollow">Mike Greenblatt,</a> partner and senior vice president of development at&nbsp;<a href="https://beansquad.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-top-5-bookkeeping-challenges-multi-unit-franchisees-face-and-how-to-overcome-them-2728743" target="_blank" rel="nofollow">BeanSquad</a>, the franchise-focused accounting solutions provider, many franchisees make critical bookkeeping mistakes that can significantly impact their business operations. Here are the top five bookkeeping challenges multi-unit franchisees face and how to overcome them.<h2>1. Failing To Maintain Separate Books for Each Location</h2>One of the biggest bookkeeping mistakes multi-unit franchisees make is not keeping separate books for each of their locations. "A lot of operators, especially those new to the financial world, think they can just have everything in one QuickBooks account," said Greenblatt. "But if you don’t separate your books, you won’t understand the profitability of each of your sites. It creates a lot of problems."Without individual financial records for each location, franchisees struggle to identify which locations are profitable and where they may be losing money. The solution? Set up separate books for each location from day one. If you want to consolidate financials, use accounting software that allows you to track each location as a separate class or entity.<h2>2. Mixing Bank Accounts and Credit Cards Across Locations</h2>Another common issue Greenblatt sees is franchisees using the same bank accounts and credit cards for multiple businesses. "When you lump everything together, it’s nearly impossible to break it apart later," he said. "It makes it difficult to track financial performance accurately."To prevent this, multi-unit franchisees should open separate bank and credit card accounts for each location. This ensures clear financial tracking and simplifies reconciliation, tax reporting and expense categorization.<h2>3. Trying To Manage Bookkeeping Alone</h2>Many franchisees start out thinking they can handle bookkeeping themselves. However, Greenblatt warns that this often leads to falling behind. "I’ve had calls with clients who were accountants in their previous careers,” he said, “and even they say, 'I had it under control until I missed a week.' That one week turns into six months, and suddenly, you’re scrambling for tax season."The best approach is to work with a professional bookkeeping service from the beginning. "We always recommend getting a bookkeeping partner as soon as you start incurring expenses," Greenblatt said.&nbsp;<a href="https://1851franchise.com/beansquad/info">BeanSquad</a> even offers a program where their services are free until a franchise opens, ensuring financial records are set up correctly from the start.<h2>4. Lack of Financial Visibility Across Units</h2>Without clear financial tracking, franchisees can’t make informed business decisions. "If you’re expanding from a single unit to multiple units, lenders and franchisors will want to see separate P&amp;Ls," said Greenblatt. "They need visibility into each location’s financials."To address this,&nbsp;<a href="https://1851franchise.com/beansquad/franchise-supplier-deep-dive-beansquad-2727987#featured">BeanSquad helps franchisees</a> separate financials by class within accounting software, making it easy to track profitability by location. Additionally, they provide guidance on setting up proper financial structures that maintain visibility without adding excessive administrative work.<h2>5. Not Leveraging Financial Data for Growth</h2>Beyond just tracking expenses, franchisees need to understand their financial data to drive profitability. "There are three layers of accounting: tax accounting, operational bookkeeping and financial decision-making," Greenblatt said. “Most business owners stop at tax accounting. We help them take it further by analyzing key performance indicators (KPIs) and margins to make data-driven decisions.”BeanSquad provides franchisees with insights into their gross margins, sales metrics and profitability leaks. "For example, if I’m talking to&nbsp;<a href="https://1851franchise.com/beansquad/how-beansquad-transforms-franchise-financial-management-for-the-ups-store-operators-2728461#featured">a UPS Store owner</a>, I want to discuss their shipping margins and sales metrics they can control," Greenblatt said. "Our goal is to help business owners shift their focus from just tracking expenses to improving overall profitability."<h2>Final Thoughts</h2>Overall, Bookkeeping is one of the most critical aspects of running a successful multi-unit franchise, yet many franchisees struggle to manage it effectively.&nbsp;"If you understand your financial statements and how they impact your business decisions, you become a powerful operator," said Greenblatt. "That’s what we aim to provide at BeanSquad — not just bookkeeping, but financial clarity and strategic insights that help franchisees thrive."For franchisees looking for a bookkeeping partner that simplifies financial management while driving profitability,&nbsp;<a href="https://1851franchise.com/beansquad/top-5-reasons-franchisees-need-to-partner-with-beansquad-for-bookkeeping-services-2728115#featured">BeanSquad offers tailored solutions</a> designed to support multi-unit operators at every stage of growth.For more information on BeanSquad, visit:&nbsp;<a href="https://1851franchise.com/beansquad">https://1851franchise.com/beansquad</a>.

Top 5 Bookkeeping Challenges Multi-Unit Franchisees Face and How to Overcome Them

1851 Franchise

From maintaining separate books to leveraging financial data for growth, addressing these challenges early on can prevent costly mistakes and set the business up for long-term success.

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The Top 5 Bookkeeping Challenges Multi-Unit Franchisees Face — And How to Overcome Them

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The Top 5 Bookkeeping Challenges Multi-Unit Franchisees Face — And How to Overcome Them

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