Chicago Franchise Accounting Firm
A franchise is a license of sorts that gives the recipient use of the franchisor's methods, knowledge base, and brand, i.e., effectively allowing the franchisee to market and sell a product or service under the franchisor's name. Thus, franchise holders are independent businesses, albeit accountable to the granting business by following certain guidelines.
The Chicago-based Susan L. Lewis CPA firm provides the full range of accounting, tax, and bookkeeping services. From franchise accounting to income taxes to estate planning to financial reporting to transaction advisory consultation, we share our collective wisdom with clients in the United States, wherever they are.
What Makes Franchise Accounting Special?
Accounting services for franchises aren’t easy. After all, people are drawn to a franchise business for its turn-key nature: the trial and error process is over while the fruits of it are all laid out. Still, obtaining a franchise is not cheap, and the franchise owner is subject to the franchisor's sometimes rigid rules of operation.
Therefore, franchise accounting focuses on three critical areas:
- Monthly or quarterly reporting to the franchisor.
- Monthly financial statements.
- Analytical report for the franchisee on a monthly basis, demonstrating the ratio of expenses to revenue, gross profit, and a comparison with the industry standard.
Our Franchise Tax Services
A franchise business is a business in its own right, but also in an exclusive relationship with another enterprise. Due to this arrangement, franchise accounting must consider the income and expenses of the franchisee according to the terms of the franchise license as well as the tax status of the license holder.
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Income Tax Preparation
Our franchise CPA firm makes sure franchise clients are structured for optimal tax favorability. Once this is determined and executed, we prepare tax returns that legitimately reduce obligations and maximize savings.
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State and Local Tax (SALT) Submission
Anticipating state and local tax issues and many opportunities can lead to keeping more hard-earned money. Examining state allocations, incentive zones, and other credits, we spare no advantage that might be yours.
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IRS Representation
When a franchise owner is subject to an audit by the Internal Revenue Service (IRS), our tax preparation advisors do not leave the client hanging. We are experienced and willing to stand by the tax returns we prepare.
Our Franchise Accounting and Bookkeeping Services
Franchise accounting differs from traditional business accounting in a number of ways. From developing a chart of accounts to structuring an effective business model, a consistent objective must rule throughout. Our solutions are geared toward initiating, expanding, and scaling the franchise operation.
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Financial Statement Preparation
The party that grants the franchise requires monthly financials to determine the profitability of the license. Statements of income, cash flow, and balance sheets are among the required documents.
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Payroll Services
A franchise owner is responsible for compensating and managing employees according to both legal demands and franchisor guidelines. A Chicago CPA practice that covers the country can navigate this sometimes tricky balance.
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Financial Planning
Eventually, a franchisee wants to turn a profit and save — even invest — for growth and improvement. The right counsel regarding income, loss, and cash flow makes all the difference when goal-setting.
Franchise Business Entities We Serve
At Lewis CPA, we specialize in comprehensive financial services tailored to diverse franchise operations. Our expertise shines in the hospitality sector, serving hotels, restaurants, and beverage establishments.
Beyond hospitality, we have in-depth experience supporting retail franchises, health and fitness centers, and personal care businesses, including barber shops and hair salons.
Our team's industry-specific knowledge allows us to offer strategic financial planning, tax optimization strategies, and accounting solutions that align with each franchise category's unique business model. Regardless of your industry, we encourage you to reach out to see how our team can help you.
Our Franchise Accounting Process
We are systematic and thorough as we size up, restructure, and work on behalf of your bottom line.
Why Choose Our Franchise Accounting Services?
Franchise accounting services require a high degree of knowledge, experience, affordability, and integrity. The Lewis CPA franchise accountants represent all four of these essential components and provide top-notch accounting services for franchisees.
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