Accounting Requirements / Business Recordingkeeping

Accounting Requirements / Business Recordkeeping  

Bookkeeping Procedure and Requirements  

  
You are required to establish and maintain a system of financial records prepared according to Generally Accepted Accounting Principles (GAAP). The latest version of QuickBooks Pro is strongly suggested. This software is easy to use and assists you in recording your expenses and sales giving a more comprehensive view of your business on a daily basis. The following are resources to help you set up your QuickBooks company files:  

• QuickBooks Chart of Accounts IIF file  

• Chart of Accounts in Excel Format  

• Creating a new company file in QB  

Chart of Accounts  

The Chart of Accounts (COA) is the list of financial records used by your business to classify items. It is used to segregate and organize your franchise’s revenue, expenditures, assets, and liabilities.  

NEW STORE WITH QUICKBOOKS IN PLACE, BUT NO CHART OF ACCOUNTS SET UP: Use the import feature to add accounts. Follow these steps to import:  

• Click on the “QuickBooks Chart of Accounts IIF file”   

• Place Franchisee COA  

• Open QuickBooks company file  

• Select FILE, UTLILITIES and then IMPORT  

• Browse and Select Franchisee COA  

• Select finish and the file should import  

• Confirm import by comparing Chart of Accounts  

• In addition, please see the “Chart of Accounts Appendix” to compare the results.  

Accounting Manual  

For suggestive accounting and QuickBooks procedures, please see "Accounting Manual” located in the forms section. Please note that these manuals contain only suggestive procedures and Edible recommends that you contact your accountant for procedures that better fit your needs and apply to specific laws in your town, state or province.  

You are required to open and maintain a bank account from which Edible may automatically debit royalties, advertising fees and other payments as well as credit any money owed to you.  

As stated in the Franchise Agreement, Edible reserves the right to examine/audit certain documents from the operation of your franchise which may include sales activities from your business, accounting records, banking activity and related materials.  

Recordkeeping  

You must retain during the term of your franchise agreement and for seven (7) years thereafter (possibly longer based on state and federal requirements - consult your accountant) all books and records related to your business including, but not limited to, the following:  
  

• Sales invoices   

• Purchase orders   

• Invoices   

• Payroll records  

• Sales tax records   

• Cash receipts and disbursements journals   

• General ledgers   

• State and federal tax returns   

• Other records required by Edible