If you’re considering expanding to a new business location, make sure you first have a plan in place that includes appropriate accounting support and insights into staffing, costs, ROI, and other metrics.
What to Know Before Adding a New Business Location
If you’re considering adding another location to your existing business, first, congratulations! When done right, running a multi-location business is a profitable venture that provides an exciting opportunity to serve new customers and scale the successes you’ve established at your initial location.
However, before you take the leap and expand to a second location or acquire another business, it is critical to conduct some upfront research and form a detailed plan to make sure you’re making a wise business decision—and that you’re prepared for the new accounting challenges that multi-location businesses present.
Do you have the accounting software you need?
To decide whether to add a second location, you need in-depth financial forecasts and detailed business metrics. If your business relies on QuickBooks or manual accounting methods, that information may not be readily available, which could hinder your decision-making.
The latest accounting solutions provide the data you need to accurately assess risks, fixed and other costs, ROI, customer data, and other metrics. Cloud-based accounting solutions can provide real-time visibility into data from across your business, and they can integrate seamlessly with your existing payroll, sales, and other business systems.
If you end up deciding to add a second location, having a robust ERP solution in place beforehand will also help you avoid the operational inefficiencies that are common in many business expansions.
Is your in-house accounting team ready to scale?
Adding another business location will inevitably create new accounting challenges and complexities that can be difficult for already-busy in-house accounting teams to predict and manage.
As mentioned, having the latest ERP software in place can help. Before you expand to a new location, it also may make sense to outsource some of your business accounting responsibilities to a firm with the experience, expertise, and bandwidth to handle whatever new accounting-related demands emerge.
Are you ready to staff another location?
To run multiple locations, you’ll need to hire and train new employees or shift some current employees to a new workplace. Often, you’ll need to do both. Significant planning is needed to forecast and manage staffing at both locations. Again, having the right systems in place, with insights into payroll, HR, and other business areas, can help you understand whether you’re ready to scale.
Get the support you need
At BST, our goal is to create a partnership that allows you to focus on your business while we focus on your accounting-related needs. Our Virtual Accounting Solutions include everything from managing daily accounting operations to producing reports and collaborating on strategic planning and budgeting. As you consider scaling your business, we are here to serve as your trusted advisors, providing continuous consulting to support every step of your journey.