Multi-unit franchising is certainly an attractive proposition, however, it presents unique challenges. Financial and logistics management of multi-units might appear to be an up-hill task. What makes this task challenging is the dependence on outdated, legacy accounting system.
However, winds of change are fast transforming the ways in which multi-units are managed both financially and operationally. The key change that is sweeping the multi-unit franchising world is the use of fully automated cloud-based accounting systems.
What are the drawbacks of Legacy ERP Systems like QuickBooks?
In legacy accounting system manual data entry is necessary to update accounts payable, accounts receivable and general ledger. This significantly adds to operating costs. Traditional ERP systems fail to provide real time data. Since most data has to be manually entered, it takes a while before data is reflected in the system. Furthermore, lack of automated general ledger allocation means data has to be manually entered at the unit level as well as corporate level. This unavoidably leads to duplications and errors. The end result is a highly ineffective data management system that leads to poor financial and operational performance.
How can Modern Franchise ERP system correct the problem?
Automation holds the key to the success of modern ERP system. No more duplicate manual entries! Once financial data is entered in the system, it automatically gets allocated across general ledger, accounts receivable and accounts payable. Since the need for manual data entry gets reduced to the minimum, requirement for additional staff also diminishes. This means significant financial gains for the franchising business.
Another advantage of modern ERP is that it enables access to data anytime, anywhere. In other words, most modern franchise ERP solutions are built on cloud technology. All you need is cloud connectivity and a browser to access business critical data. Also, any devise including laptops, tablets and smart phones could be used to access data.
Cloud based, automated ERP systems are also well integrated with front end systems. Franchisor based POS Systems are integrated with these accounting systems. At the unit level data is entered into the system and is immediately available at the corporate level. This allows for reconciliation and accurate and timely financial transactions. Vendors like Sysco get orders for inventory to be delivered to all the different units. Once delivered and confirmation received from the unit managers; electronic payments are made to Sysco. Automation makes all stakeholders come out ahead.
Last but not the least, automated franchise accounting systems provide real time dashboards and reports. So, you do not have to call your accountant to understand the performance of your units. You have the freedom to take important decisions based on real time data analysis.
Partner with ASC to make the most of the wonders of automation.
ASC has been at the forefront of implementing cloud ERP solutions since the past two decades. Recently, the company has been honored with an award from Acumatica for superior customer satisfaction and value addition (Video 1).
Video 1: Video on Value Proposition; Acumatica & Advanced Solutions and Consulting
A leading certified Acumatica reseller, ASC commands extensive knowledge on the franchising industry. We take time to understand your business needs and suggest appropriate ERP solutions. Our experienced and expert cloud ERP team has successfully deployed 100’s of ERP software including the franchise market. We promise to be your trusted partner through the before-during-after lifecycle of your ERP solution implementation.
Please contact Jim Carroll: @ firstname.lastname@example.org; 310 508 9700; President Advanced Solutions & Consulting; Solana Beach, CA to know about a successful implementation case.