Preparing for tax season doesn’t start in January...
It starts with strong bookkeeping habits all year long. What is your #1 priority in the first 12 months as a new franchise owner? Generating revenue.
Trying to do your own bookkeeping pulls you away from growth and we often see it lead to financials that need major cleanup later.That’s why we recently hosted a training with one of the franchise brands we support, Gotcha Covered, alongside Michelle Moldowan, Gotcha Covered Franchise Business Coach, to talk through year-end prep and best practices.
Kelli Mueller and Dillon Towey from our Franchise Resource leadership team walks through best
Why Monthly Bookkeeping Matters
One of the biggest themes of the webinar was simple: don’t wait until tax season to look at your books.
Strong monthly bookkeeping prevents scrambling later and gives you clarity throughout the year.
Key Monthly Bookkeeping Tasks
1. Categorize transactions consistently
Transactions flowing into QuickBooks from bank feeds should be categorized monthly (if not weekly) to keep financials accurate.
2. Reconcile all accounts
Bank accounts, credit cards, and loans should be reconciled at the end of every month. Reconciliations catch glitches, missing transactions, and duplicate entries before they become bigger issues.
3. Review your financial statements
You should receive financials every month in a timely manner and understand them. For new franchise owners, roughly 80% of decisions in the first 12 months should be based on financial data.
4. Understand cash flow vs. profit
A profitable business can still struggle with cash flow. For example, loan payments impact the balance sheet, not the profit and loss statement, an important distinction many owners miss early on.
Year-End Preparation Checklist
As the year closes, your focus should shift to making sure everything is clean and complete for your CPA.
Final Reconciliations
All accounts should be reconciled through the last bank statement of the year. This is critical for accurate tax filings.
Review Accounts Receivable & Payable
Ensure all sales and expenses for the year are properly recorded so income isn’t overstated or understated.
Fixed Assets & Large Purchases
Let your bookkeeper know about:
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Equipment purchases
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Financing arrangements
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Assets purchased late in the year
Even if payments haven’t started yet, your CPA needs this information to calculate depreciation correctly.
Payroll Reconciliation
Payroll reports should match what’s recorded on your profit and loss statement. Franchise Resource reconciles payroll monthly to ensure wages and employer taxes are recorded accurately, avoiding year-end discrepancies.
Organization & Best Practices
Strong bookkeeping is as much about organization as it is about numbers.
Best practices include:
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Storing receipts directly in QuickBooks
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Keeping bank statements accessible
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Maintaining W9s and 1099s on file (critical in case of an audit)
A dedicated bookkeeper ensures financials align with franchisor charts of accounts and compliance requirements.
Bookkeeper vs. CPA: Know the Difference
Bookkeepers handle:
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Day-to-day and month-to-month transaction coding
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Reconciliations
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Detailed financial reviews
CPAs focus on:
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Tax filings
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Year-end strategy
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Big-picture tax planning (including personal factors like real estate or spouse income)
Ideally, your bookkeeper should be on the year-end call with your CPA, answering technical questions so the CPA can focus on strategy, not cleanup.
We proudly partner with Avior, a trusted partner who shares our commitment to accuracy and client care. Together, we make managing your finances feel like a one-stop shop, from daily bookkeeping to year-end filing.
Focus on What Matters Most
Both Kelli and Dillon strongly encourage franchise owners — especially in the first 12 months — not to do their own bookkeeping. Your time is better spent growing revenue, supporting customers, and building your business.
If issues exist, start asking questions now. Many CPAs begin year-end planning meetings in October and November, giving you time to correct problems before deadlines hit.
Preparing early and partnering with the right experts can turn tax season from stressful to strategic — and set your franchise up for long-term success.
Franchise Accounting You Can Count On
Based in Omaha, Nebraska since 2013, we have been providing professional and reliable bookkeeping services for franchise owners.
Our bookkeeping services are designed to make your life easier so that you can focus on what you do best!
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