by Franchise Accountants
last updated 07/12/2023
Staying On Course
by Franchise Accountants
last updated 07/12/2023
Franchise Accountants steer franchise buyers and franchisors toward success
Having worked with over 1,000 franchise businesses in New Zealand and evaluated over 250 different brands, Franchise Accountants have a deep-seated understanding of the sector. Confirming this reputation, the company is also five-time winner of the Service Provider of the Year title at the Westpac New Zealand Franchise Awards.
As founder Philip Morrison says, ‘Whether you are a buyer evaluating an opportunity for the first time, or a franchisor needing advice on getting the best results for yourself and your franchisees, we are here to help you.’
Helping franchise buyers
According to Philip, ‘The first question any would-be franchisee needs to ask is this: “Is the business I’m buying viable, sustainable and profitable?” Our job is to find out. Many good businesspeople are not accountants, so they need professional assistance delivered in a way they can understand. I’m proud to say that many of our clients have praised the clarity with which we have presented figures to them, and enabled them to do what they do best – build and run their business.’
As franchisee of Guthrie Bowron in Manukau, Chris Gibb has seen solid growth since taking over the established branch eight years ago. ‘I was looking for a solid business I felt I could grow and, with 50 stores, Guthrie Bowron seemed to fit the bill perfectly. Before making the decision, though, I needed help from someone who could explain the full implications of the financial side.
‘Franchise Accountants were recommended to me by an expert in the franchise sector, so I consulted them before buying the business and they have been a very steady hand on the financial rudder ever since. I have found their understanding of business and franchising goes beyond the norm, and they make canny suggestions around cash flow which have been particularly valuable this year. Thanks to their guidance, we’ve avoided all the financial crises that small businesses often encounter, and the firm has an approachability about them which always makes me feel comfortable asking for advice. No question is too big or too small, at any hour of the day!’
Franchise Accountants can bring its expertise to bear on the problems faced by franchisors, too. Grant Nye is CEO of Kitset Assembly Services, having joined the franchise in 2019. The locally-developed franchise was facing a few challenges as it worked to mature its business, and had turned to Franchise Accountants for help.
‘As a new CEO having to get a handle on every part of the business at once, I got to know Philip and his colleagues very quickly, and rapidly established a great working relationship with them.’
Kitset Assembly Services has 37 franchisees in New Zealand and the success of the format has seen it expand to Australia, with the USA to come shortly. ‘Even with Covid, we’ve seen solid growth,’ says Grant. ‘Revenues for assembly were up 42 percent in 2021/22, helped by our links to over 100 high street and online retailers.
‘Part of our growth came from developing a world-class on-line estimating system which enables clients to key in the item they wish to purchase and see a price for having their local franchisee assemble it for them. Those kinds of developments involve major expenditure with all the attendant risks, and having Franchise Accountants to bounce the figures off was highly beneficial in making our decisions.’
They listen and then help
‘Some accountants and lawyers tend to stifle commercial ideas and, whilst those warnings can be important, they shouldn’t become barriers to doing business,’ says Grant. ‘As a CEO, what I look for in a professional advisor is someone who doesn’t just say “no” out of caution, but who will lay out the landscape to help prevent me from falling down the cracks.
‘Recently, we had a very specific case. Because of our overseas expansion, we were looking at restructuring the company. That always means tax considerations, and I was able to tap into solid advice that laid out the options and how we might approach them, together with the pros and cons. This guided us in the right direction. To have an accountant with that depth of knowledge is a bonus.
‘A financial accountant will tell you about the tax and other ramifications, but Franchise Accountants will listen to what the business is trying to do and then help with the solution. They cover both start-ups trying to get established to bigger companies looking for growth opportunities. The advice I have had from them has been invaluable in supporting our in-house finance team as we navigate our business to continued success.’
A wealth of experience
Philip says the Franchise Accountants team are always happy to hear from anyone who needs help buying a franchise or growing the one they already own.
‘We have a wealth of experience in the franchising sector, and in these uncertain times it is more important than ever to have an accountant who really understands your business. Contact us today to find out how Franchise Accountants can help you.’
This advice is of a general nature only and expert advice should be sought to get the right advice for your specific situation.
Contact details for Franchise Accountants
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