In our interview with Jamie Weeks, who Orangetheory Fitness recognized as its 2017 Franchisee of the Year, he mentioned how one key to his success is not trying to be an expert in everything. To that end, he suggested that new franchisees “find opportunities to outsource those functions that require expertise to allow yourself to focus on your people.”
One of the companies that offers franchisees operational support is Ceterus. Ceterus specializes in outsourced bookkeeping and accounting for franchises. Below, Levi Morehouse, Ceterus founder, gives us a brief overview of what the company can do for franchisees and why it’s important for franchisees to consider outsourcing certain business functions such as accounting.
How many franchisees do you work with on their accounting needs?
Ceterus works with thousands of franchisees across restaurants, fitness, wellness, and service industries to provide a complete done-for-you accounting and benchmarked reporting solution. Our solution combines people with technology and is uniquely designed to meet the needs of multi-unit franchise owners.
What is the biggest thing Ceterus helps franchisees with?
First, our done-for-you accounting solution makes the work of accounting a result to be expected, not another department to manage for a franchisee. Second, our franchisee reporting platform provides critical insight into the financial health of the business and includes benchmarks with relevant peers, cash forecasting, and daily performance dashboards. Combining done-for-you accounting with benchmarked reporting empowers multi-unit franchisees to focus on their business.
What are some of the biggest things franchisees can miss because of lack of expertise or unawareness?
One of the best things about being a franchise entrepreneur is that you can more easily double-down on your success by adding locations and become a multi-unit franchisee. What these franchisees often miss as they add locations and grow their portfolio, is that accounting and reporting for a multi-unit franchise is different than accounting for one business that gets larger independently. We often see newer multi-unit franchisees miss opportunities to operate more effectively and profitably because they don’t look at each location as a stand-alone profit center, with the ability to share management expenses.
Can you name some of the biggest advantages to franchisees outsourcing their accounting and related functions?
The biggest advantage of outsourcing accounting, or any non-core business function to a franchisee, is a greater focus on strategic initiatives. The most successful franchisees spend their time building their teams, delighting their clients, and looking to expand on their success. The opportunity cost of executing or managing, a function that could be outsourced is incredibly costly to a scaling business.
How has technology impacted your services?
People plus technology are the core of our solution. The best way to service multi-unit franchisees is to foster personal relationships and become a trusted advisor to our clients. This is made possible by leveraging our proprietary cloud-based platform designed to automate financial transactions. Featuring integrations with point-of-sale systems, and built-in AI/machine learning, our platform delivers unique insights into the financial health of the organization. Armed with this information, we are empowered to focus on communicating with clients, not processing transactions.
What else should prospective franchise clients know about services like yours?
We appreciate it when a franchisee has a trusted CPA or accounting advisor. This is a valuable relationship that empowers a franchisee to be more successful. We have a solution that complements the valuable work of the CPA by executing processing work behind the scenes and providing insightful reporting. Whether individually or with a trusted CPA, we are helping our franchise customers maximize the opportunity for growth and long term success.