Franchise Spotlight: Accountancy
Low overheads, repeat business and robust demand among benefits of accountancy franchises.
Government statistics show that around 2.3 million businesses were trading in Australia as of 2019, a 2.7% rise on 2018, and many outsource accounting and tax-related tasks. The $21bn accountancy and tax services market is enjoying rising demand for sector-specific advisory services, and stable demand for services that fulfil clients’ legal requirements.
Other notable industry trends include the profit margin-boosting value-added services enabled by technologies like data analytics and cloud-based software.
Even the impact of Covid-19 – more severe on advisory than audit and tax services – will be fairly short-lived, says market research firm IBISWorld, with the wider economy expected to rebound strongly.
Franchise market analysis
Accountancy franchises benefit from low overheads and repeat business through auditing accounting records, preparing financial statements and tax returns, bookkeeping and advisory services.
To benefit from their proven business model, training and advice, and brand pedigree, aspiring franchisees may need accountancy or tax qualifications or a corporate background in senior positions – or they may consider other types of legal and finance franchises instead.
Global accountancy giants PricewaterhouseCoopers, Ernst & Young, Deloitte, and KPMG account for a huge chunk of the overall market, but many accountancy franchises are prospering too, sometimes by catering to small businesses, the self-employed, and property landlords. This is the model of TaxAssist Accountants, founded in the UK 25 years ago and now seeking franchisees across Australia.
H&R Block , meanwhile, is a former Topfranchise Awards winner and a vehicle for starting, or rebranding existing, tax practices.
Founded in 1971, ITP (Income Tax Professionals) now serves more than 300,000 clients across Australia and has been named the top tax and accounting brand by Readers Digest.
Finally, accountants and bookkeepers who join STP (Success Tax Professionals) are helped to achieve tax agent status (if they haven’t already) and generate revenues from both businesses and individuals.