The accounting franchise is a much more complex operation than the bookkeeping franchise service.
Here, it is advisable that you have the necessary qualifications and/or experience.
Small business owners may need bookkeeping services to save time.
However, larger corporations will get further and contract accounting firms.
It is much cheaper to contract an external accountant rather then to create multiple internal accounting departments. Therefore, a lot of independent accountants and accounting franchises service larger companies while bookkeeping operators aim at smaller businesses. There is an exception to this rule, though. The income tax franchise is an accounting service which all businesses and most private customers need. However, the income tax service is a seasonal requirement. Thus, many businesses use their accountants to lodge the tax return.
You can earn a lot of money by running an accounting firm.
However the accounting business, more than the bookkeeping, requires a corporate image.
If you are a starting accountant then the accounting franchise is the best choice for your career.
These accounting franchises will not be cheap but they will expose you to more clients.
Customers coming from private and small business backgrounds may settle with less known independent accountants.
However, larger corporations will require a solid resume before outsourcing money to you. In most cases it is not the money you charge per hour but the efficiency of your work which counts. It is not a bad idea to invest $40K into a reputable accounting franchise and leave it when you are ready to open your own independent operations. However, we would not recommend to invest money into an income tax franchise. Most accountants and even bookkeeping professionals can provide the service for as little as $50 per tax return. There is simply not enough cash flow for the income tax franchise to justify $20K-$30K to invest.
The income tax franchise service should be part of your overall accounting franchise operation. It is good to research for accounting franchises which offer diversity. Those businesses which provide accounting and bookkeeping services (including income tax) are probably the best choices.
Intelligent Accounts and First Class Accounts are just two reputable accounting franchises which also provide the bookkeeping service. Similarly: EzyAccounts, Business Mechanic, MAS Tax Accountants and Small Business Accounting have a proven record to provide accounting, bookkeeping and income tax services.
The accounting franchise may cost a lot but returns can be rewarding. Intelligent Accounts sells for about $55K but the business has a good public exposure throughout Australia. EzyAccounts is a smaller operation. It only costs $30K but primarily specialises in payrolls. First Class Accounts sells for 36K while Business Mechanic costs $67K. You should not necessarily go for the cheaper franchise. Investing 30K into a low profile accounting business can be more expensive than $55K into well advertised operations.
There is not a lot of income tax franchises. However, even if the business is inexpensive it will be hard for it to compete. Almost all accounting and even some bookkeeping operators offer tax return. Some mobile accounting businesses sell the tax return service for as little as $50.