Streamline reporting, win financing opportunities and turn margins into cash with cash flow management for franchises.
The total number of franchise establishments in the U.S. is projected to reach 781,931 by the end of 2015 for a total YOY growth of 1.6 percent, according to recent research from the International Franchise Association (IFA). While the franchise industry has seen steady growth in recent years, financing opportunities remain competitive and franchise organizations that are not executing their cash flow management well may fall behind.
“Franchising is much more than quick service restaurants. Franchise businesses are proliferating in many sectors of the economy, including financial services, healthcare, education, automotive, home improvement, hospitality and a wide range of other important consumer services,” said IFA President & CEO Steve Caldeira, CFE.
Opening your first franchise or expanding into new territories and entities is always a risk. However, 82-percent of businesses that fail do so because of poor cash flow management practices, according to an article at Entrepreneur.com. Franchisers can significantly reduce the risks of starting and growing a business by strictly managing their cash flow.
“Cash flow isn’t intuitive. Don’t try to do it in your head,” said Tim Berry the author of the article. “Making the sales doesn’t necessarily mean you have the money. Incurring the expense doesn’t necessarily mean you paid for it already. Inventory is usually bought and paid for and then stored until it becomes cost of sales.”
Simplify Cash Flow for Franchises
Cash flow management for franchises is no new concept, but sophisticated cloud-based cash management with insights into supply chain, financing and AP and AR has never been available to small and mid-size franchise organizations the way it is today. And because everyone is operating as lean as possible these days, enterprise resource planning (ERP) implementation doesn’t always fit in the budget.
But the high cost and time investment commonly associated with ERP can be avoided by choosing a cloud solution. The low up-front costs and predictable monthly pricing of the cloud opens the doors to advance management solutions to everyone from one-shop operations to large holding companies.
With these cloud solutions available, franchisers can manage cash in the cloud with cash-flow calendars that enable both historical and forward-looking insights to accurately gauge how funds flow in to and out of the business. Bank reconciliation tools allow you to get a full view of credits and debits across accounts. Plus, with advanced reporting tools, financial leaders in franchise organizations can track funding, collections and streamline accounts receivables to ensure speedy receipt of payment.
With a Microsoft Dynamics GP package from myGPcloud, you get every tool you will need to boost cash flow and seize opportunities. The calendar is easy to use and delivers historical and predictive insights by day, week or month. Pre-defined reports automatically pull lists of investors and partners. Dynamics GP reporting tools also make it easier for AR and AP managers to track customers’ balances and invoices so it is simple to prioritize based on money owed to you and evaluate customer histories and quickly react to any problems that may present themselves. Streamlined bank reconciliation gives you confidence that you have an accurate measure of cash on hand. And with a direct connection to Microsoft Outlook, you can take care of issues right away by sending a simple email.
Decision Making with Intelligence
Whether you are a single restaurant owner or a growing multi-faceted organization, myGPcloud’s on demand Dynamics GP for franchises is more than a solution. It will be the beating heart at the center of your organization that will keep margins low and cash flowing. With simple to use business intelligence tools, business leaders will be able to make decisions based on data driven insights to improve processes from marketing and inventory and to supply chain and investor relationship management. This ultimately drives new business and shrinks costs.
Optimize your resources and improve end-to-end processes to increase your profitability using predictive analysis.
Increase staff productivity and drive accuracy by automating your purchasing processes using order-point minimums and maximums, as well as built-in workflows.
Drive investor confidence with real-time, accurate information presented in visually impressive reports that can be produce quickly and easily, so when the opportunity knocks you are ready to open the door.