Home' The Franchise Review : September 2015 Contents THE FRANCHISE REVIEW
The franchise sector is one of the most important sectors to
our economy, directly contributing roughly 460,000 jobs and
$144 billion in annual turnover. It is therefore critical that
franchise systems implement the best finance technologies to
seamlessly communicate with their franchisors, to allow them
to forecast for the future and ensure their continued success.
So, is the cloud really as good as they say? Let's have a look at
Understandably, the biggest consideration for the cloud is
whether it is safe to use, and how secure the data actually is.
People are often hesitant about what they don't know, and
the same goes for business owners looking to invest in online
software. Security shouldn't be overlooked, and franchisees
need to prioritise security when making a decision on the
technology provider they select.
Reputable cloud providers employ high levels of both physical
and electronic security to protect their clients' data. Industrial
scale data centres have sophisticated security at all levels,
compared to a home or office, meaning providers can facilitate
a much safer environment for sensitive information than a small
business is likely to be able to create on its own premises.
With this taken care of, business owners are advised to focus
on access control, putting processes in place for credit cards,
passwords, and occurrences such as staff members leaving
Once there is comfort in knowing the data is secure in the
cloud, the next concern that often surfaces is how the data
is backed up. The Australian Taxation Office (ATO) requires
businesses to keep detailed business records for a minimum
of five years. With online finance software, businesses can
save data any time, and the software will automatically do
the secure backup so that data is still available if something
goes wrong with the office computer. Think about what you
would do if your office was flooded, ravaged by fire or raided
by thieves. Is your important business information safe and
accessible, no matter what?
Security and data backup are very legitimate considerations for
franchise systems thinking about implementing online finance
systems. But online accounting also provides one of the biggest
benefits to businesses; implementing this could potentially
save a significant amount of time and money. For example,
businesses using automated bank feeds in their accounting
software save an average of 10 hours per month, which is
valued at $713. If we look at this over the period of a year,
that's 120 hours (or 15 working days), and $8556 saved. That's
a big saving in the context of how time poor business owners
can be. We know franchise operators often sacrifice personal
and family time in order to run their businesses, so this kind of
time and cost saving can have significant positive impacts on a
business owner's business and personal life.
But let's take it one step further. Not only does cloud
technology save a business money, but it also has the potential
to make money. MYOB's Business Monitor research indicates
that businesses that use online accounting are 30 per cent
more likely to increase their revenue than those that don't. In
today's competitive market, the cloud provides an advantage
that businesses can't afford not to use.
The franchise sector is evolving, and we're starting to notice
a shift from traditional processes between franchisors and
franchisees. There is now a much greater appetite for
integrations between franchise management systems and
existing online software in the market.
A perfect example of this is Caltex. A leading franchise business
owner, John Anastasiadis, who operates multiple Caltex
franchises in Victoria, implemented online accounting earlier
this year. Anastasiadis was able to integrate his accounting
software with Caltex's own stock system, which significantly
reduced the amount of time his team spent on data entry. It
also enabled him to have better visibility and, consequently,
better control over the current position of his business and his
projected forecast for the next six to 12 months. John is now
able to get a clear picture of how his business is operating,
where his investment is having the biggest impact, and what
isn't working and needs to be revisited.
In the modern business environment, the old saying, 'If it ain't
broke, don't fix it' is just no longer relevant. Franchise systems
have an opportunity to do the research and invest in the right
technologies to communicate effectively with their franchisor,
streamline processes, get better reporting and insights, and
ensure that they remain compliant. Taking precautions is
always the first step for any business decision, but online
finance solutions will help a business to harness productivity,
profitability and flexibility -- elements that work towards
improving that all important bottom line.
If you're thinking of taking the next step for your franchise business
and implementing the best online finance solutions, speak with your
bookkeeper or accountant, or visit www.MYOB.com.au for more
information on MYOB's cloud accounting solutions.
Not only does cloud technology save a business money, but it also has the potential
to make money. MYOB's Business Monitor research indicates that businesses that
use online accounting are 30 per cent more likely to increase their revenue than those
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