Our client first came to us after finding an online retail franchise opportunity which involved sourcing products from Asia and selling to other global markets.
Investment appraisal
As with any business it’s important to assess whether the venture is going to be financially possible to set up as well as maintain profitability once active. We assessed the business plan alongside the client to establish exactly what would be required of them in terms of the initial investment and then looked at the profit margins and sales activity required to achieve a reasonable level of profitability.
Incorporation and accountancy setup
We incorporated the business and registered them for VAT to ensure tax paid on franchise license fees, stock and business-related costs were reclaimable from the start. The client was provided with online accounting software along with initial training to help keep track of costs and reduce time in bookkeeping.
Management accounting and bookkeeping
After 6 months the business was actively trading and consistently increasing the number of product lines on offer. With more transactions occurring regularly the bookkeeping became more involved so the client decided to outsource the process to our dedicated in-house franchise accounting team who also produced monthly management accounts to give them a clearer picture of their financial position.
Financial reporting
As part of a franchise, the business had to produce accounts not only for Companies House and HMRC but also for the franchisor. We ensured that all regulatory and statutory requirements were met while fulfilling their reporting obligations to the franchisor.
Tax planning
Our tax specialists have a wealth of experience in tax planning and were well placed to ensure that the client paid the minimal and correct amount of tax. This involved looking at existing businesses owned by the client to see if there were any available losses that could be offset against profits and come up with a workable plan. In addition, we were also able to advise on the personal tax planning opportunities to the client as well as looking at issues such as Capital Gain tax and Inheritance tax.