Tax preparation is an $11 billion industry, and more than half of American taxpayers pay a tax preparer to do their taxes. It doesn’t take an accountant to figure out that a whole lot of potential revenue is out there for tax preparation services. But if you are a certified public accountant (CPA), you most likely possess the skills, knowledge, and experience that are a natural fit for tax preparation franchise ownership. Here are the top 6 reasons why a CPA like you should seriously consider investing in the potentially lucrative tax franchise business.

 

  1. For Those with a CPA Firm, 1 + 1 Can Equal > 2

If you own a CPA firm, you know how hard it is to gain new clients and increase revenue. Adding a tax franchise to your existing CPA business doesn’t just bring in new tax customers. It also translates into more business overall. Each new tax customer you bring in is also a potential customer for your accounting services. And each of your existing accounting clients could lead to more individual tax preparation customers. With more than two decades of experience attracting over 19 million total customers, our proven system can help increase your client list and let you focus on taking care of them.

 

  1. The Corporate World Can Be Tough on New CPAs

You’ve worked incredibly hard for years to pass classes, tests, and certification exams to become a CPA. But the hiring of accounting graduates has declined over the past few years, and accounting is rated as one of the toughest jobs to fill. Even if you are one of the lucky 20% of accounting graduates who gets a job at a Big Four firm, you’ll likely be stuck in an entry-level, lower-paying position because you don’t have the required experience yet. And when you do work your way up to a job in your field that pays well enough, you’re faced with the challenges of marketing your services, generating leads, and finding clients — all skills they didn’t teach in accounting school. A tax franchise is the perfect way to combine your existing academic knowledge with a proven system that can help young entrepreneurs build a business quickly and successfully. To find out if you’re a candidate for tax franchise ownership, take our simple yet comprehensive assessment survey.

 

  1. CPAs Know About Taxes Already

Tax laws change from year to year, so a lot of successful CPAs take continuing professional education (CPE) courses in federal and state taxes to stay current. Many CPAs already know what clients want and need, the timeline required to get taxes done, the ins and outs of the tax code, and where to look to find updates and resources for your clients. You may also advise your clients about which deductions they qualify for and which ones they don’t. But even if you don’t know much at all about individual income tax, our training will combine with your natural accounting skills and aptitude to make you a tax preparation expert. All of these factors contribute to the fact that CPAs make up such a large portion of professional tax preparers (see chart below).

 

chart showing breakdown of groups that have a Current Preparer Tax Identification Number for 2017
 

  1. CPAs Are Qualified to Determine Whether the Tax Franchise Will Succeed

One of the many tasks of most CPAs is to help investors and business owners assess the likelihood that their new venture will succeed. Aside from doing taxes, many of you craft business plans and review the projected start-up and operating costs and revenue figures to see if they accurately reflect a workable idea or venture. Not only are you familiar with the ins and outs of business-related taxes and deductions, but you’re also aware of the importance of creating a solid financial foundation for a business. These skills, combined with your experience in mitigating business risks and understanding regulatory oversight, enable you to help predict whether a franchise will do well in your area.

 

  1. Being a CPA Saves Money

When first starting out, it’s important for a tax franchise owner to have intimate working knowledge of all the tasks to be completed to run the franchise. As the business grows, there will be more capital available, allowing employees to fill those roles. By already having knowledge of the industry and knowing how to keep accurate records and file taxes, a CPA can delay the cost of hiring someone else to do this work for them until cash flow increases to easily cover the expense. In addition, you’ll be able to understand exactly when it will be cost-effective to have someone else do the labor for you. When you’re ready to hire employees, you have the skills to train the employees to do the work. On both ends, your skill set and knowledge save money and maximize ROI.

 

  1. For CPAs, P&Ls Are Part of Your DNA

When it comes to running your own business, CPAs are able to look at financial numbers in the general ledger and spot potential problems. You monitor P&L statements and projected earnings to ensure the business is not just profitable, but also sustainable. You track accounts payable and accounts receivable to know exactly what your financial position is. In addition, CPAs are sticklers for keeping balance sheets up-to-date, so there’s essentially no learning curve for keeping a tax franchise’s records current.

 

The advantages of tax franchise ownership are high for CPAs and include all the successful elements that have made franchising in general so popular with investors:

  • Increased net income, lower costs, and streamlined business processes
  • A well-established national brand and reputation
  • Targeted and effective local advertising and marketing done on the franchisee’s behalf
  • A proven business model with an effective track record
  • Guidance and support in getting started
  • Marketing programs developed for less than franchisees could themselves
  • Assurance that programs are well vetted to drive optimal results
  • Protection and mitigation of risks
  • Lower overhead costs related to economies of scale and vetting and investing in vendors and suppliers

You already have the training you need to run a tax preparation business, so you can focus instead on leveraging the brand and following the established, effective system to market your franchise and grow your business as quickly as possible. This gives CPAs an important and effective head start in becoming successful. For more information about if franchise ownership is right for you, check out our online report entitled “Saying ‘I Do’ to a Franchise.” Also be sure to check out available tax franchise opportunities for sale now in your area.

 

 

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