--- title: "Month-end close for franchise owners" description: "Month-end close for franchise owners: outsourced month-end close: checklist-driven accruals, prepaids, depreciation, reconciliations and a reviewed close." url: https://ledgerbpo.com/industries/franchises/month-end-close/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Month-end close for franchise owners Month-end close for franchise owners has an audience beyond the owner: the franchisor wants the period's gross sales, the lender wants unit-level covenants and the CPA wants clean cut-offs. A LedgerBPO team runs the close for each unit on a fixed CloseTrack checklist: sales cut-off from POS, royalty and ad-fund accruals, distributor bills accrued to the period they belong to, payroll accruals across pay cycles, rent and percentage-rent entries, and inventory adjustments where the brand requires counts. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for franchise owners Every account is reconciled, every item on the checklist is signed off, and a second accountant reviews the package before it is released. ## What is month-end close outsourcing? Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements. ## What we handle for franchise owners - Sales cut-off tied to POS period totals, per unit - Royalty and marketing-fund accruals booked for the period earned - Distributor and utility bills accrued when invoices arrive late - Payroll accrued across pay periods that straddle month-end - Close checklist signed off under Two-Tier Review before release ## The KPI that matters here Close completed and unit statements issued by business day 5 every month. ## 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 - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Square](https://ledgerbpo.com/software/square/) - [Dext](https://ledgerbpo.com/software/dext/) - [Fathom](https://ledgerbpo.com/software/fathom/) - Toast - [All 50 platforms](https://ledgerbpo.com/software/) ## More for franchise owners Other services for franchises - [Bookkeeping](https://ledgerbpo.com/industries/franchises/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/franchises/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/franchises/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/franchises/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/franchises/bank-reconciliation/) - [Financial reporting](https://ledgerbpo.com/industries/franchises/financial-reporting/) - [All franchises services](https://ledgerbpo.com/industries/franchises/) Month-end close in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/month-end-close/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/month-end-close/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/month-end-close/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/month-end-close/) - [The full month-end close page](https://ledgerbpo.com/services/month-end-close/) ## Frequently asked questions ### What does a franchise month-end close include that a regular close does not? Royalty and ad-fund accruals for the period, a gross-sales figure that matches the brand upload, percentage-rent accruals, and inventory adjustments where the brand requires counts. Units are closed individually and then consolidated. The rest of the checklist is standard: reconciliations, payroll accruals, prepaid and fixed-asset entries, and a review by a second accountant. ### Can you close by a date my lender or franchisor requires? Yes, the close calendar is set around the date you need and the CloseTrack checklist is scheduled backwards from it. Business day 5 is our usual target when feeds and bills arrive on time. If a distributor statement is late we accrue it and adjust the next month, so the deadline holds. ### How do you handle inventory at month-end for a franchise? If your brand requires a physical count, the unit manager submits it through LedgerDesk and we book the adjustment to cost of goods sold for that unit. If not, we record purchases as cost of goods and adjust quarterly or annually per your CPA. Either way, the treatment is consistent across units so margins compare. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/franchises/month-end-close/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt