How it runs for franchise owners
A LedgerBPO cash-application specialist applies each receipt daily in QuickBooks Online Advanced or Xero, records fees and deductions on their own lines, resolves unapplied cash within the week and keeps each location's receivable and sales figures accurate.
What is cash application?
Cash application means matching money received from customers to the invoices it pays and recording that in the accounting system. It covers bank receipts, checks, lockbox files, card payouts and remittance advices, including partial payments, deductions and payments with no reference. Done well, the aging is accurate and no customer is chased for an invoice they already paid.
What we handle for franchise owners
- Card and delivery-platform payouts applied to the unit and day they cover
- Corporate and catering payments matched to invoices, including partial payments
- Insurance and third-party remittances applied by claim or job number
- Deductions and short-pays recorded with a reason code, not written off
- Unapplied cash cleared within 5 business days
The KPI that matters here
Unapplied cash older than 5 business days held at zero across all units.
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
Frequently asked questions
Why is cash application separate from bank reconciliation for a franchise?
Bank reconciliation proves the bank balance agrees with the ledger; cash application decides which invoice, unit and day each receipt belongs to. A deposit can be reconciled and still be applied to the wrong location, which distorts unit sales, royalty reporting and the customer's balance. We do both, in that order, every day.
How do you apply one corporate payment that covers several locations?
The remittance advice, or the customer's email, tells us which invoices are being paid. We split the receipt across the invoices and units it covers so each location's receivable and sales are correct. If the customer gives no breakdown, we apply to the oldest open invoices and note it, then confirm with the customer through the billing desk.
What happens to short-payments and unexplained deductions?
They are recorded against the invoice with a reason code such as pricing dispute, damaged goods or duplicate billing, and listed for the owner's decision. Nothing is written off without approval. Recurring deductions from one payer are reported so you can fix the cause, whether that is pricing, delivery or the invoice itself.
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