Franchise Spotlight: Tax
With more people looking to outsource their tax needs, this sector is successfully franchised and looks set to grow.
The market size of the tax industry was valued at over CA$1billion (Ibis World), a figure which is only predicted to grow. A tax franchisee will be involved with preparing tax returns, book-keeping, managing payroll, billing, offering advisory tax services and organizing returns for individuals or businesses. Given the time and effort which is required to manage tax-related paperwork, many businesses choose to outsource this important role, creating plenty of work in a lucrative industry for those keen to invest.
As managing tax is a recurring activity, savvy franchisees will take advantage of repeat business from clients - whether they are interested in support with their tax return in isolation, or a range of services that a franchisee can offer. After so many industries were impacted by the 2020 global health pandemic, the economic landscape remains uncertain for many businesses - this may cause an increase in those looking for advice and expertise in the tax industry, as businesses will need to manage finances carefully to ensure stability.
Government free software which guides individuals to manage their own tax returns poses competition for those investing in this sector and so franchisees would be wise to ensure they are able to offer a range of services when selecting their business model.
Trans Canada Tax Service is a Canadian owned and operated tax preparation franchise that prioritises customer satisfaction. Padgett Business Services have franchises across North America and provide a range of services including tax returns, payroll and compliance support.
Tax Industry Analysis
The tax sector is an exciting and demanding industry to work in. Whether you are looking for part-time, full-time, office-based or working from home options, there is a business model to suit a range of needs. This industry can be a stressful one in which to work, especially at key times of the year - for example, when tax returns are due to be submitted. If you work well under pressure and can thrive in a busy environment, then a tax franchise could be a lucrative investment.
Customer satisfaction is important to ensure repeat business from clients and franchisees will need to be efficient, organized and accurate in their work to ensure business runs smoothly. Some franchisors will offer training but most expect franchisees to be qualified accountants or have experience in related fields. A willingness to undertake training and acquire qualifications may be expected so franchisees must ensure they are clear of the expectations on their time and budget.