Investing in an accountancy franchise is a big decision which needs to be informed by reliable research covering the practical implications of such a commitment.
So, for those contemplating taking on responsibility for their own business, here is some information about the key features involved in buying and running an accountancy franchise.
- The UK franchise industry now generates an annual turnover of £17.2 billion.
- UK franchises employ 710,000 people working in 48,600 franchise businesses.
- 60% of all UK franchise units have an annual turnover in excess of £250,000.
- 40% of all UK franchise opportunities can be operated from a home office.
- 18% of all UK franchisees are now under 30 years of age.
UK accountancy plays a crucial enabling and facilitating role in virtually all types of commercial activity.
The industry remains dominated by four major accountancy firms (Deloitte, Ernst & Young (EY), KPMG and PricewaterhouseCoopers (PwC)) who between them earned 74% of the total fees generated by the leading 100 accountancy firms during 2015-16.
There is a broad variety of roles available within accountancy, with the most common positions being: actuary, auditor, accounting technician, bookkeeper, management accountant, chartered accountant and tax accountant.
And when you reflect that all UK businesses are required by law to maintain financial records and submit annual tax returns, the UK accountancy sector has countless recurring opportunities for a keen accountant wishing to set up a profitable business!
In accountancy franchising terms, the four most-known brands are Certax, Rosemary, The Financial Management Centre and TaxAssist Accountants.
To stand out in this sector, a franchisee should be committed to maintaining the highest standards of service. This is particularly important in a profession where many opportunities are going to involve repeat business, and where referrals are essentially earned by acquiring, and being able to maintain, an excellent reputation for prompt, accurate and reliable service at a fair price.
Accountancy franchises can cover a broad range of services which includes core tasks such as bookkeeping, accounting, and auditing.
Franchisees working for small businesses may work from an office, or otherwise as a mobile or home-based service. In addition, the varied nature of the work means that some franchisees may be able to start off working solo, while others may need to hire staff of their own to manage the workload.
Rosemary bookkeeping franchise network for example, offers both management and career opportunities. Franchisees work from home and operate within a B2B environment.
The initial investment required for an accountancy franchise often starts at around £15,000 but could be as much as £40,000.
A franchisor will also require monthly fees in addition to this, or take a percentage of the franchise earnings.
Is an accountancy franchise for you?
Though the qualifications, skills and experience required (if any) will depend on the role and responsibilities demanded by the specific model, all franchise options will provide you with support and an appropriate level of training.
Beyond this, franchisors will be looking for self-motivated individuals who possess not only drive and determination, but also common sense and an excellent level of commercial business acumen.
Franchisors will also need to be completely satisfied that any potential franchisee will have the necessary discipline to follow the requirements of the franchise model they choose to operate.