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BeanSquad Franchise - How BeanSquad Is Taking the Stress Out of Franchise Bookkeeping - 1851

How BeanSquad Is Taking the Stress Out of Franchise Bookkeeping

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 Executive Q&A: Mike Greenblatt, SVP of Strategic Business Development at BeanSquad

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1851 Franchise Top Franchise Suppliers Deep Dive: Beansquad

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Beansquad: Counting, Connecting, Transforming Franchisee Financial Success Through Bookkeeping Data

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The calendar reads mid-February and for franchise owners, that date carries weight. In only a few weeks, the window for a relatively smooth tax season begins to close. By March 1, many CPAs stop taking on new files and start preparing extensions.&nbsp;For franchisees and franchisors alike, mid-February is often the last real opportunity to turn a year of transactions into a clear financial picture.&nbsp;<a href="https://www.linkedin.com/in/mikegreenblatt/">Mike Greenblatt</a>, vice president of operations and strategic growth at&nbsp;<a href="https://beansquad.com/services-franchise/">BeanSquad</a> — the financial services company that delivers outsourced bookkeeping and compliance support for franchises — said he sees the same pattern year after year. Waiting doesn’t just create stress; it can wind up being costly, too.<h2>The Hidden Costs of Waiting</h2>Some operators believe they can hand everything to their CPA at the end of the year and let them sort it out while preparing the return. Greenblatt said that approach often leads to higher bills and weaker results. When CPAs are buried during peak season, even routine cleanup work can come with premium hourly rates.“If you’re working directly with just your CPA, they revel in this opportunity to charge you their hourly rate and throw journal entries in so they can run a tax return for you that may not even be that accurate,” Greenblatt said. “If you don’t handle your bookkeeping on a monthly basis, even at worst quarterly, and you wait until the end of the year, you’re going to cost yourself an arm and a leg. A CPA can charge you hundreds of dollars an hour just to get your books cleaned up for the year. And that’s a lot more expensive than a monthly bookkeeping cost.”Accuracy tends to be an issue under such circumstances, too. Compressing 12 months of activity into a short window increases the likelihood of mistakes. If revenue isn’t properly categorized, a CPA may treat every deposit as income. That can mean paying taxes on money that’s not even actual profit.<h2>Systemwide Consequences</h2>In franchising, the impact of disorganized books doesn’t just stop at a single location. Weak or incomplete data can affect the system as a whole. Franchisors depend on accurate financial reporting, which helps build dependable Item 19 disclosures in the Franchise Disclosure Document while providing benchmarking information across the network.When regular financial submissions aren’t required, the franchisor may lack visibility into what’s actually happening on the ground. Greenblatt said some brands lean heavily into point-of-sale data, which may capture sales but fails to paint the full financial picture.“Item 19s are incredibly important to a franchise concept, right? If they have a proper Item 19, it allows them to sell more. But I talked to a lot of different concepts where they never required financial submission. Which means they may have been making a lot of assumptions,” Greenblatt said. “So, being disorganized can create a lot of ripple effects.”Without reliable data, measuring true profitability becomes more difficult. It can also stall growth. Plus, lenders typically require clean, reconciled profit-and-loss statements and balance sheets before even considering potential financing. If those documents aren’t in order, expansion plans may fall to the back burner.<h2>Bookkeeping vs. Tax Preparation</h2>Bookkeeping and tax preparation aren’t the same function, and the misunderstanding of these roles can create problems. Greenblatt said&nbsp;<a href="https://1851franchise.com/beansquad/info">BeanSquad’s</a> focus is on preparation: reconciling bank accounts, organizing balance sheets and properly categorizing profit-and-loss statements.That groundwork allows a CPA to step in with a cleaner financial package, but timing matters too. Even the most efficient cleanup team depends on the information an owner provides and the timeline in which it’s provided.“Last-minute cleanups are only as messy as the information presented to you,” Greenblatt said. “At the end of the year, we’re at the disposal of the access points our clients give us. However, there’s a much shorter deadline we can play with.”<h2>Using Data as a Compass</h2>For Greenblatt, the urgency around March isn’t just about meeting IRS deadlines. It’s about giving operators better visibility into their business before the year gets going. Too many franchise owners rely on bank account accounting: judging performance by whether there’s money in the account.Still, that mindset can be misleading. Without financial statements that are actually reliable, owners lose the ability to run a meaningful gap analysis, which can make it difficult to properly assess how actual results compare with expectations.“You don’t want to look up and say, ‘I’m making money and I have more than I did at the start of the year,’ and think that means you’re succeeding,” Greenblatt said. “If I’m supposed to be at a 22% bottom line and I’m at 4%, sure, technically, I made money. But I’m off by 18%! So, I should want to know why.”Cleaning up the books now allows operators to review seasonality, identify trends and adjust course for the months ahead, enhancing the odds of successfully scaling a business.“The financial facts give you the foresight to make proper decisions,” Greenblatt said. “It’s taking what’s happening operationally, what you see with your eyes, and what’s on paper. Then it’s putting them together to make operational decisions that truly impact your business.”To learn more about BeanSquad's bookkeeping services for franchises, please visit&nbsp;<a href="https://1851franchise.com/beansquad">https://1851franchise.com/beansquad</a>.

BeanSquad VP Mike Greenblatt breaks down why disorganized financials do more than just stress out accountants; they actively drain profit through high cleanup fees and missed deductions.

Last Call for Clean Books Before Tax Season: The Hidden Revenue Franchisees and Franchisors Lose When They Wait

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