Information On Accounting & Tax Franchises
Accountant and tax professionals oftenmake excellent franchiseesas they have a terrific understanding of what it takes to prosper in the world of business.
Because of their training, they also have financial knowledge and can usually recognise a good investment when they see one.
Naturally, these professionals are inclined toinvest in a franchise system which focuses on their areas of expertise. In fact, many accounting and tax professionals have worked within the industry for years and want to branch out to work for themselves.
That is where accounting and tax franchise opportunities come into play. The popularity of accounting and tax franchise opportunities can also be attributed to the public's trust level in the industry, with a recent report stating that SMEs list accountants as their most trusted business advisers.
A great number of the franchise opportunities recognise this and insist on both strong eligibility criteria and training for franchisees. One of the reasons for this is because they want to ensure that all franchisees can continue to upkeep the good name of the industry.
Speaking of reputation, when you invest in a franchise, you are also investing in brand recognition. With services like accounting, many businesses go straight to the names they already know and very often, those names belong to franchise brands.
In fact, there is some optimism that this industry is going to grow even further over the next half decade. According to IBISWorld, Revenue in the Tax Preparation Franchises industry is projected to grow in the five years leading up to 2027.
That is only part of the industry that many of these franchises fall into. Another interesting facet about these franchises is that with them, there are often several revenue streams.
There is the service revenue, from taking on once-off jobs. However, there is also project revenue from accountants and tax that take on larger individual projects and there is also recurring revenue from businesses and individuals that regularly pay you to help with their accounting and tax needs.
That is barely the tip of the iceberg either. Different accounting firms have recognised and been able to diversify to continue to increase their business in recent times.
Here are some facts and trends which show the strength of this industry:
- According to IBISWorld, the Australian accounting industry brings in revenue of $20bn per year, with around 130,000 people employed in the sector. It is a valued part of the Australian economy, which touches on every other industry.
- As we touched on earlier, there are several different revenue streams within the industry. More and more firms are diversifying, with over 40 percent of accounting companies looking to either start offering financial planning and wealth management services or build upon existing services in this area.
- The influence of accountant and tax firms on the overall economy of Australia is massive and this is reflected in the ample opportunities and demand for their work which currently exists.
- In 2021, there were 281,300 people working in the accounting and bookkeeping industry. Over half of these people were accountants and about 15 percent of them were bookkeepers. If you are one of them and want to be your own boss, then considering a franchise could be the right move for you.
You are probably asking yourself whether starting a franchise within the accounting and tax industry is the right move for you. Truth be told, it’s only you who can answer that question.
However, the Australian Industry and Skills Committee do give a useful list of the skills that they think are most valued within this industry. They are as follows:
- Health and safety skills.
- Design mindset and an ability to think critically.
- A good work ethic, with system thinking and a love of solving problems.
- Teamwork and communication skills.
- Learning agility, with the ability to take in information easily.
- You should also be able to self-manage.
- Of course, there are also industry specific technical skills, such as core financial multi-disciplinary skills.
Of course, if you are still not sure, you may want to look at the secondary skills that are valued within the industry. They are as follows: C
- Customer service and marketing (although, when you are a franchisee, much of your marketing will be done by the franchisor).
- Health and safety skills.
- Teamwork and communication skills (when you are a franchisee, you are working for yourself, but not by yourself).
- Data analysis skills are obviously integral to the work.
Of course, every industry not only has its opportunities, but also its challenges. The world of finance and taxation is highly dynamic, so it’s no surprise that it has both in abundance.
Their Australian Industry and Skills Committee report on this Industry lists some of the challenges and opportunities that the accounting and bookkeeping industry is set to face.
The personal income tax structure, which can change over time. If you are working within this industry, firstly that means coming to terms with the changes. However, it also represents a revenue making opportunity as more and more people will be looking for advice.
Changes in technology are changing how the industry works. For instance, both cloud-based technology and artificial intelligence having a big impact. The AISC discuss this when they state: “Cloud-based technology for accounting has taken market precedence, as more firms are buying into the efficiency, cost-reduction and ease that cloud-based accounting provides
“Artificial intelligence is also impacting the accounting sector, with tasks such as payroll, tax, audits, and even banking anticipated to be completely automated by 2020.”
Cryptocurrency and its fluctuations will also come into play over the upcoming years. Although this will represent a challenge for this industry, there will also likely be opportunities for an industry that is ever-changing.