Accountor CPA: Case Studies
Case Study: Tim Hortons
Tim Hortons Inc. is a Canadian multinational fast food restaurant chain. Based in Toronto, Tim Hortons serves coffee, doughnuts, and other fast food items. It is Canada's largest quick-service restaurant chain, with 4,846 restaurants in 14 countries
A group of Tim Hortons stores was struggling with understanding how their business doing, they were not able to generate proper reports on a location by location or in a grouped consolidated format. They also struggled with external reporting to the franchisor every month, month-end would take extremely long to close and as a result, they were unable to report on time every month.
- The system they used was QBO which did not handle location-based tracking too well;
- No proper way to consolidate profit and loss to review monthly results, as a whole group or locations, or a segmented location group;
- No proper way to view profit and loss monthly results, location by location and compare to previous years or by product line;
- Monthly close would take over 20 days each month which meant that they were late every single month and had to incur penalties;
- Their internal chart of accounts was not consistent with the chart of accounts of the head office which meant external reporting took over 40 hours or reconciliations each month.
- We moved them to Xero and constructed the chart of accounts from scratch to match the monthly external reporting;
- We reduced the monthly close from 40 hours per month to about 2 hours which meant all external reports were submitted on time and no penalties were incurred;
- We were able to track by location, group of location and a consolidated group which meant generating extremely detailed reports was quick and easy;
- By being able to compare results across locations and geographies, the group managed to increase their profit by 14% year over year.