Improving the quality of franchise income statement

Financial information is vital to any business at it helps determine which initiatives should be continued and which need to be changed in order to increase revenues, manage costs, and increase the overall profitability. The quality of financial information should not be taken for granted. Characteristics such as, but not limited to, relevance, faithful representation, understandability, comparability, timeliness, and accuracy shall be practiced at all times as these have a powerful impact to the users of the financial statements. But what if one of these is not achieved because of certain constraints? In this action research, the issue is revolving around the poor quality of income statement as evident by the number of errors identified by the users of said report. The goal is to decentralize the preparation, analysis, and issuance of the financial report which will help minimize the misstatements. Relevant information about the problem were gathered through the application of ORJI and Ladder of Inference. Root cause was analysed by using 5 Whys and the Right hand/Left hand Column. Change Management framework was used to address the identified focal issue and the interventions made were all aligned to said frameworks and ethical principles