フランチャイズのオーナーがメガフランチャイジーのオーナーになるための会計管理の考え方 | フランチャイズニュース

■What is Accounting Management Necessary for Business Operations?

While there may be some differences depending on the person, at a minimum, you cannot manage a business without understanding the monthly cash flow (CF) and profit and loss (PL).

Also, when we say "managing accounting," you might imagine accounting and tax processing, but the accounting management that is actually necessary for business management is as follows.

~What is necessary accounting management for business operations?~

1) Determine whether sales, sales and administrative expenses, and various costs incurred in running a company are at an appropriate level

2) Control them

3) Reinvest those funds

This series of financial actions is what it means to "manage accounting."

The ultimate goal of this action is to optimize operating cash flow and investing cash flow. By continuously building upon this action, a franchise owner can become a mega-franchisee owner.

■Differences in Accounting Management Approaches Between Franchise Owners and General Companies

What are the differences in accounting management approaches between franchise owners and general companies?

General companies need to verify whether the operating cash flow generated from company operations is optimized. In other words, they must verify whether various "management indicators" such as sales, gross profit, operating profit, and ordinary profit are at appropriate levels, and whether the set appropriate levels are truly appropriate.

This series of verification processes is directly related to the improvement of each individual business flow.

Therefore, the company's on-site leaders and management departments spend considerable time and effort calculating appropriate levels. As a culmination of this verification process, financial resources remain within the company. By appropriately reinvesting these resources, a healthy investment cash flow is generated, and a growth cycle can be established.

In other words, it is no exaggeration to say that optimizing operating cash flow and investment cash flow determines a company's growth potential. That's how important "proper accounting management" is.

On the other hand, due to the nature of the franchise business, operating cash flow is relatively easy to predict.

In the case of a franchise, which is already an established business model, certain levels are set for all items, such as appropriate sales, appropriate break-even points, and appropriate selling and administrative expenses.

Furthermore, it is efficient because it eliminates the need to verify whether the set levels are appropriate or not, and is extremely beneficial for continuous accounting management.

Of course, you can set an even higher level to achieve better operating cash flow.

However, from the perspective of managers and on-site supervisors, the fact that you can understand the minimum appropriate level alone makes the franchise business an attractive business that makes it easier to optimize investment efficiency. In other words, franchise owners can optimize operating cash flow in a rational and short amount of time by keeping sales and sales management expenses generated from franchise operations at an appropriate level.

■What is Accounting Management for Aiming to Become a Mega-Franchisee?

So, what is the "accounting management" that franchise owners really need to consider in order to aim to become a mega-franchisee?

It's not accounting management in operations, that is, improving operating cash flow. It refers to the following type of accounting management.

~Accounting Management for Aiming to Become a Mega-Franchisee~

1) Investing funds generated from appropriate operating cash flow,

2) Optimizing the overall asset management and investment efficiency of the company,

3) Accounting management that considers the overall expansion of the company by focusing on investment cash flow

By managing accounting as described above, investment cash flow is optimized.

This accounting management does not need to be complicated; the basic principle is to increase the size of the franchise with accumulated profits. Furthermore, make full use of the accounting characteristic of franchise businesses, "the ability to predict profits," and prepare those investment funds more efficiently.

"The ability to predict profits" is a great strength in company management.

The biggest advantage of this is that you can clearly set your next goal and create a detailed plan over several years.With a detailed plan, you can make full use of various financial management tools such as tax savings and borrowing, and you can utilize your own funds more efficiently.

■When choosing a franchise, consider accounting management

As described above, even within accounting management, the knowledge and know-how required differ between the "sales side" and the "investment side."

And by utilizing a franchise, accounting management on the sales side is simplified. Therefore, it may be difficult to become a mega-franchisee owner without focusing even more on the "investment aspect."

For owners joining a franchise in the future, or owners who want to expand the scale of their franchise, it is important to consider whether the "operating operations are optimized," or in other words, whether the accounting management is properly handled, when choosing a franchise brand. This accumulation of experience is the first step from being a franchise owner to becoming a mega-franchisee owner.