Greene King extends open-book accounting
Greene King Pub Partners, the company's tenanted division, has extended its open book accounting package to include new accountants more local to the individual pubs.
Greene King was the first pub company to introduce open book accounting four years ago.
The accounting package, which helps probationary tenants through their first year after taking on a pub, has increased probationer retention for the group to 90% - it was around 30% five years ago.
The new package will provide more support with the added advantage of accountants with a greater understanding of the local area and economy.
New accountants now acting for Greene King's licensees are MBA Systems, the Pub Accounting Company and G W Cox & Co. All have been through a rigorous tender process and been retained because of their local knowledge as well as their professional capabilities.
The new package provided by all three introduces added features and includes: registration of business for
VAT and PAYE; management accounts monthly for the first three months and quarterly thereafter; cashflow analysis between months three and five (not at the beginning as before) and forecasting twelve months ahead; Stocktaking reports undertaken five times during the year; quarterly VAT returns, year-end accounts including profit and loss plus balance sheet reports; quarterly business reviews to ensure the business is progressing in the right direction and in line with business plans.
Pub Partners has negotiated a fixed price for the service, which is based on the turnover of the pub.
This has been fixed until 30th September 2008 enabling licensees to control the expenditure on their financial support.
Greene King is keen to see the package being used by licensees following the probationary year and offers extra services including taxation, payroll, stock control and business consultancy.
Commercial director for Pub Partners Sue Thomas-Taylor said: "We know that providing professional financial support to new licensees helps them progress through their first year. We also recognise that the same professional help would be an advantage to licensees in the second phase of their business especially taxation, payroll and stock control assistance. This enhanced package will provide licensees whether new or old with the financial support they need".
