Some Straight Talk About Tax FranchisesIs a Tax Franchise Right For Me?
Entreprenuer.com lists and rates 12 different Income Tax Franchise opportunities. These opportunities are available just about everywhere in the United States. As tax time approaches people all over the country consider a Tax Franchise a great business opportunity.You have probably heard about franchises before. What could owning a tax preparation franchise mean for you?As you may already know, owning a franchise is one way to start your own business, but it isn’t the only way. And at the end of this article, we’ll tell you what lower priced alternatives to a franchise exist. Thousands of people every year, people like you and me, start successful businesses all over the country without purchasing a franchise.If you’ve been reading this newsletter for long, you know that I’m a strong proponent of starting a Tax Preparation business. Because of that, I think this is a great time to talk about the ins-and-outs of purchasing a Tax Franchise.
What They Didn’t Say About H&R Block
I don’t think any discussion of purchasing a franchise in the Income Tax Business would be complete without at least a mention of H&R Block. I don’t know why they weren’t included on the list, but can only assume that it’s because Entrepreneur wasn’t able to get enough information from them to make a complete comparison. So I decided to do a little research on my own.Unfortunately, short of signing up, the only information I was able to obtain was that there was a “low initial investment.” They did require a security deposit of $2500, but other than that you have to sign-up and talk to one of their salesman.In all fairness to H&R Block, you are talking 50 years of doing income taxes, one of the most advertised brands in the business and one of the most recognized names in the market.
What are the Advantages of a Franchise?
Franchises are a very popular way to start your own business without having to worry about such things as branding, national marketing and credibility . . . right? Most companies offering franchises want you to believe that the typical start-up costs of $30,000 to $85,000 will offer you everything you’ll need to get started. Some even include their education and national marketing in those fees . . . but you need those advertising dollars spent in your home town, not in some major market 4,000 miles away.H&R Block, for instance, will provide you with signage, their software and a grand opening advertising campaign, but the rest of their advertising is focused on a national level, which may or may not help your local franchise. You may still need to do some advertising on your own, to bring clients into your business.
What is a 7% to 15% Royalty Fee?
Every single month you will pay a royalty on every dollar that your franchise earns. In real dollars, that’s up to $1.50 out of every $10.00 you earn for up to 20 years. I think the “free” national advertising you receive as part of your franchise, is more than paid for.Don’t forget, you must also pay for computers, employees, rent, utilities, office supplies, local marketing, sales . . . all the things that you would otherwise pay to start your own business anyway.In fact, if you are going to finance your franchise with H&R Block, for example, they suggest that you have an alternate source of income until you’ve paid off the franchise fees, which they will finance for a 5 year term. Here’s what they have to say about financing:
“The amount of your down payment.“”Without a sizeable down payment, during the first few years, it may be necessary to rely on other sources of cash to meet your living expenses. At some higher prices, with a five-year seller-financed term loan, most of the business’s cash flow may have to go to just paying off the acquisition debt.”—H&R Block (hrblock.com)
In a nutshell, you may be able to finance your franchise, but don’t plan on taking any income home for a few years. ” . . . most of the business’s cash flow may have to go to just paying off the acquisition debt.” Most people just don’t have the kind of cash available to drop $30,000 to $85,000 into a new business, but you don’t need to.You don’t have to quit your job and roll the dice to start a tax preparation business. Start-up costs are low enough that you can keep your current job until you have the clientele to justify making it a full-time business. (For many of our graduates, all they are looking for is a great part-time income.)Click Here for the Complete List of Entrepreneurs 12 Tax Franchises
You’ve Been Talking About Starting a Tax Preparation Business . . . If a Franchise Isn’t For Me, How Should I Start?
The method I’m about to describe may not appear as easy as starting a franchise, but it is. Universal Accounting Center has been teaching people the ins-and-outs of small business accounting and tax since 1979. Universal may not have been around as long as H&R Block, but we offer the most complete and comprehensive accounting and tax preparation education in the business. And that includes H&R Block.
Let’s Start at the Beginning — You Need an Education
You don’t need a college or university education to learn tax preparation, but you do need to have a complete and specialized education. Most franchise opportunities out there will teach you how to prepare individual income taxes, here at Universal, we feel that would only be ½ an education.We’ve been the small business accounting and tax experts for over 25 years, and feel that if you are unable to file the returns for small businesses as well as individuals, you are unprepared to enter the most exciting and profitable business of professional tax preparation.With Universal, you’ll learn everything you’ll need to know to prepare and file for individuals and small businesses. (And I won’t charge you a 15% Royalty fee for the privilege, either.)
Next, You’ll Need Help Getting Your Business Started
For the first 12 months after you’ve finished your course, you’ll have access to a live voice on the other end of the phone who can help you with everything from making suggestions on computer programs, to office equipment and marketing. Your coach will be there to answer your tax and accounting questions too. By the way, did I mention that this is a FREE service for the first 12 months?
You May Want Help Marketing Your Business Too
Universal has some of the finest marketing experts anywhere who are willing and able to offer their expertise to help you market your new tax preparation business. We can’t do it for you, but you’ll be surprised at how simple and inexpensive really effective marketing can be. It’s not rocket science — you can do it.
You May Want to Know What Others are Doing — What Works and What Doesn’t
Through the Forum offered by Universal Accounting, you can find out what others are doing to make their businesses successful and ask questions of people who are out in the field doing just what you are doing.
No Tax Preparation Business is Complete Until it’s . . . Complete
Tax Preparation is only a part of the puzzle. Bookkeeping and Accounting services not only compliment Tax Preparation services, but are an important part of offering your clients a complete financial services package. Universal Accounting also offers the most complete small business bookkeeping program anywhere.Adding small business bookkeeping and accounting to your tax practice, you’ll be able to offer your clients a full service financial offering. Tax Planning takes place long before the books are closed out on January 31st. As your client’s bookkeeper/accountant and professional tax prepare, you’ll be in a unique position to offer your clients advice on a monthly basis that will impact their tax return as well as their monthly profits. (Information that they will gladly pay for enabling you to create a very rewarding lifestyle for you and your family.)
Why Should I Consider Adding Bookkeeping and Accounting to My New Tax Preparation Business?
As you can see on the graph at the left, income from a tax preparation business will peak during the first four months of the year. Many professional tax preparers are able to bill at rates that are $100 per hour or more, enabling them to work for 4 to 6 months per year and semi-retire the rest of the year.As you are building your tax preparation practice, many of our graduates have found that adding a bookkeeping and accounting service has provided a means for them to stabilize their income throughout the year.At Universal Accounting, we’ve discovered over the years that the average small business bookkeeping account will generate an income of approximately $300 per month. By billing your tax clients on a monthly basis and offering tax planning services along with year-end tax preparation services, you can feel confident billing $100 per month for tax preparation services creating a gross billing of $400 per month to clients who receive a complete financial service.The graph below shows the impact that adding bookkeeping services and tax preparation services can produce for your business. Click on the link below for a more complete description of what combining a tax preparation business with a bookkeeping and accounting practice can do for you.Click Here and Find Out More About Offering Full-Service Financial Services
Starting a Tax Preparation Business Makes Sense
I may not be a big fan of the Tax Preparation Franchise opportunities that are available today, but there’s never been a better time to start a professional tax preparation and accounting practice. Most of the college and university programs out there don’t prepare their graduates for a career in small business accounting and tax preparation. Unfortunately, neither do the franchise programs that we’ve talked about today.Unlike the franchises we’ve talked about, with an education from Universal Accounting you can begin your tax practice by operating out of your home. In fact, that’s what we’d recommend. There’s no need to run an accounting or tax service out of an expensive office space. The only people who will find you in an office will be the people trying to sell you something.When you look at starting any business, the right training and support is critical. At Universal, we offer the following:
The Most Complete Training Anywhere
Support for 12 Months After You Complete the Course
Marketing Support for 12 Months After You Complete the Course
Continuing Tax and Marketing Support After Your First Year Available
I haven’t found a more comprehensive program to help you succeed anywhere, including the franchise opportunities. But that’s not all, at Universal Accounting we back it up 100%.
Universal Accounting’s Ironclad100% Money Back Guarantee
“If, after completing the course, you feel the course didn’t live up to yourexpectation, simply return the materials to Universal, for a 100% refund of any monies paid.”
Become a Full Financial Services Provider
The Universal Accounting Financial Services program teaches you both Tax Preparation for individuals and businesses as well as how to service the Accounting and Bookkeeping needs of your clients. Combine the two services and greatly increase your profits and make marketing your service to businesses with varied needs much easier.
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