Franchise Spotlight: Tax
The rising demand for tax services means this is a lucrative industry which franchisees can take advantage of.
With taxes an unavoidable certainty in business, the tax industry is one which will always be needed. Ensuring taxes are completed correctly is essential for everyone from self-employed individuals up to large corporations and, with the stakes high, it is not surprising that so many businesses look to outsource this important area.
A tax franchisee can expect to be involved in accounting, tax preparation, payroll services and bookkeeping, and with a revenue in this industry of over $10billion in 2021 (IbisWorld), this is an exciting market in which to work. As taxes become more complicated, fewer people have the time, experience or knowledge to fill out tax returns confidently - meaning the sector benefits from guaranteed clients every year, as well as the potential for returning customers.
Companies such as Liberty Tax Services, Paramount Tax and G.I. Tax offer relatively low start-up costs and appeal to those looking to work from home and grow their business over time. Although some franchises offer full training, some require franchisees to already be licensed professionals such as tax attorneys, enrolled agents and certified public accountants.
Tax Industry Analysis
For those with an aptitude for numbers, who enjoy interacting with people and don’t mind last-minute updates and changes, the tax preparation industry could be a very good fit. In a competitive sector, the marketing tools and banner of a recognized brand, which a franchise offers, will help attract customers as you build your client base.
The tax industry may also appeal to franchisees who are looking to work from home and work part-time - although they would need to prepare themselves to be very busy at key tax points in the calendar. For those looking for a more steady income, many franchises offer services which compliment tax returns, including bookkeeping and payroll services.
Tax preparation can be a stressful job, depending on the quality of the information and documents which companies provide, and franchisees may need the ability to make last-minute changes and update information calmly under pressure. Although some companies offer training to new franchisees, many require previous experience in the industry and others look for qualified accountants. With taxes being a certainty, this is an industry which isn’t going anywhere and only looks set to continue to grow.