A 2018 Client Accounting Services (CAS) survey—conducted by Bill.com and CPA.com, which interviewed 1,700 small- and medium-sized firms (SMEs)—found that companies that outsourced their accounting services reported increased profits (28%) and revenue (23%). This compared to 16% and 14%, respectively, of companies that did not outsource.
Managing business finances is hard; there are complex cash flow calculations to do and tax compliance rules to follow. Accountants help take much of the stress out of running a business and give owners the assurance they need to work without the fear of making mistakes.
It does not take an accountant to figure out the potential existing in this industry. To top it all, if you are a Certified Public Accountant (CPA) you become a natural fit for owning an accounting and tax franchise by possessing the relevant skills, knowledge, and experience.
Here are our top reasons why a CPA should invest in an accounting and tax franchise:
Grow your existing CPA firm
If you own a CPA firm, you know how time consuming it can be to market for new clients. Being associated with an established brand with a proven business model, training and support can make this process easier.
A franchise system will help you create a more extensive client list while providing the best service. The national and local marketing done by the franchisor will also be a great addition to your firm.
The corporate world can be a tough place for CPAs
After spending hours, weeks, and months studying and clearing your exams, only a few are recruited to the Big Four. Even if you are one of them, you can be stuck in an entry-level role for a while because you will not have the relevant experience. If you manage to climb the ladder, marketing yourself and your services while also providing those services can be tough.
An accounting and tax franchise will be the perfect combination of your skills and the franchisor's proven business model. This can give you the head start needed to start your own profitable accounting practice quickly.
At TaxAssist Accountants, we talk to CPAs every day who have been working in the corporate world but now want to choose TaxAssist to start their own practice.
CPAs are already familiar with the accounting and tax world
CPAs already know the ins and outs of the accounting world. You have studied and then been certified in this field. Some might also be aware about the needs of the client and the timeline to get taxes filed. Being a part of this fraternity, you will most likely be updated with all the new tax rules and can advise your clients accordingly.
In case there are gaps, the training provided by the franchisor combined with your existing knowledge will take care of it.
Being a CPA saves initial fixed cost and increases cash flow
Being an expert in this field, a CPA can delay the cost of hiring someone initially to run the business until there is enough cash flow. Once your accounting practice has crossed its gestation period and has enough capital flowing, you can recruit more employees to handle a bigger client list. It is anyway essential for you to have a thorough understanding of how to run your franchise yourself. Only then will you be able to train your staff once you are in a position to hire them. Thus, a CPA's skill set and knowledge will save money and hence optimize ROI.
No learning curve for running the business
Since balance sheets and P/L statements are a part of a CPA's DNA, you can identify potential problems by just looking at the financial statements. Your skillset will not only help you to project earnings but also make your business sustainable.
As well as the above, there are many advantages of owning an accounting and tax franchise. Being a CPA gives you a head start in the accounting and tax franchise world. You can then focus on leveraging the brand name and marketing support to grow your business further.
TaxAssist Accountants can help you start your own profitable accounting and tax practice. You will work for yourself but not by yourself. Our industry-leading training and 365/7 days of marketing and technical support will help you build an asset for the future.
To learn more about our business model, contact us to book a free 45-minute Information Session.