When there’s more than one location, the burden more than doubles because you have to prepare each location, plus a consolidated view. In terms of consolidated financial reporting, you should look to automate the collection and reporting processes.
To consolidate means to merge a number of items into single, more effective whole.So with consolidated financial reporting, you are combining the financial statements of separate entities or locations to gain an overall view of your enterprise’s financial situation.Recent developments in financial consolidation software enable users to do more than just consolidated financial reporting.From a management perspective, seeing all independent locations in a single view is helpful in identifying what is working for best performers and using those top performers as a model to make changes to and improve the profitability of lower-performing units.Consolidated financial reporting gives you the opportunity to both get a full financial view of your entire enterprise and gain insights by comparing and analyzing the individual units side-by-side – ensuring continued success and growth across your entire franchise portfolio.
To get the ‘big picture’ when it comes to your franchise investments, look to consolidated reporting and financial consolidation software to make understanding, analyzing, and managing your businesses easier.
These tips will make the financial consolidation process and more successful.1.) Automate the Financial Reporting Process Owners of even one franchise, and their accountants, spend a great deal of time preparing monthly, quarterly, and yearly financial reports – both for their own use and to meet franchise reporting requirements.
Software providers, such as Qvinci, allow multi-location owners to do more with the consolidated financials.
Features such as ranking reports, benchmarking, vertical analysis, and email alerts turn modern financial consolidation software platforms into invaluable business management tools.
Consolidated financial reporting is the best way to get the full picture of how all of your businesses are performing, in total.
Of course it is necessary to look at the financial reports for individual franchise units to assess their performance on their own, but by comparing the across companies or locations, you‘ll be able to see which of your investments are providing the biggest return.