How it runs for franchise owners
Exceptions are logged in ReconBot with a reason and an owner, and no reconciliation is signed off without a second reviewer.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for franchise owners
- POS Z-reports and card batches matched to bank deposits per unit
- Processor fees, chargebacks and reserves recorded on settlement
- Inter-unit and owner transfers cleared without inflating income
- Loyalty, gift-card and delivery-platform payouts reconciled to sales
- Unreconciled items older than 30 days listed with an action
The KPI that matters here
Zero unreconciled bank or card items older than 30 days on any unit.
Franchises compliance notes
Franchisor royalty reporting
Your agreement defines gross sales for royalty purposes, and the definition often excludes sales tax and refunds but includes gift-card redemptions and delivery orders. We keep the ledger's sales accounts aligned to that definition so the weekly upload and the monthly royalty statement reconcile without manual adjustments. Any dispute is documented with POS exports the franchisor can trace.
Marketing-fund and local advertising reporting
Brand marketing-fund contributions are a separate percentage from royalties and many agreements also require a minimum local advertising spend, often 1 to 2% of gross sales, with proof on request. We track both in their own accounts and keep invoices attached so the annual attestation is a report, not a search.
Audit rights and record retention
Franchise agreements commonly allow the franchisor to inspect books and POS data, and to charge the audit cost to you if under-reporting exceeds a stated threshold, frequently 2 to 3%. Every sales entry carries its source document in LedgerDesk so an inspection can be answered from the file.
Multi-state sales tax and payroll
Units in different states carry different sales-tax rates, filing frequencies and payroll registrations. We track liabilities by unit and state, prepare the workings, and your registered preparer files; we do not file on your behalf.
Franchises software we work in
More for franchise owners
Other services for franchises
Bank reconciliation in other industries
Frequently asked questions
Why do my card deposits never match my daily sales?
Because processors deposit net of fees, hold some batches over weekends and sometimes combine days, while your POS reports gross sales by day. We match each batch to its deposit, post the fee and any chargeback as separate lines, and reconcile timing differences so sales in the ledger equal POS sales and the bank balance equals the statement.
How do you reconcile delivery-platform and loyalty payouts?
DoorDash, Uber Eats and loyalty processors pay out on their own cycle, net of commissions. We record the gross order value as sales, the commission as a cost and the payout as the deposit, using the platform statement. This keeps gross sales accurate for royalty reporting while the bank reconciliation still ties out for each unit.
Do you reconcile a separate bank account for each unit?
Yes, every operating, merchant, savings and loan account is reconciled on its own, coded to its unit. Transfers between units or from the owner are matched on both sides so they never appear as revenue. The payment processor reconciliation service for franchise owners goes deeper on the merchant-account side.
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