Bookkeeping is an essential service for any business, but running your own bookkeeping franchise allows you to turn this necessity into a lucrative business opportunity. As an industry that generates over $40 billion annually in the United States alone, bookkeeping continues to grow as small businesses rely increasingly on outsourced financial services.
If you\'re considering buying a bookkeeping franchise, this guide covers everything you need to know, including:
- The Benefits of a Bookkeeping Franchise
- Important Factors When Choosing a Franchise
- Top Bookkeeping Franchise Opportunities
- Estimated Costs and Fees
- Tips for Running a Successful Franchise
So if you want to leverage your finance experience to be your own boss, read on to discover if a bookkeeping franchise is right for you.
Why Choose a Bookkeeping Franchise?
Buying an existing franchise comes with extensive support and proven business practices, giving you the best chance of success over an independent startup. Here are some of the main advantages of choosing a bookkeeping franchise:
Low Barrier to Entry
- You don\'t need an accounting degree or bookkeeping qualifications to own a franchise. Training is provided.
- Franchises provide the workflows, software, and methodology so you can hit the ground running.
Established Brand and Customers
- Customers recognize established brands rather than unknown startups.
- Many franchises source leads and provide you with an initial client base.
Ongoing Support
- Franchisors provide you with field coaches, training, and corporate support.
- You can leverage franchise materials, marketing assets, and operations manuals.
Flexibility and Work/Life Balance
- Many bookkeeping franchises allow you to work flexibly from home.
- You can build a team to take care of day-to-day operations.
- Leverage online tools to manage your franchise remotely.
Important Factors When Choosing a Franchise
Success with a bookkeeping franchise depends largely on finding the right fit for your goals, budget, and abilities. Carefully vet franchises on these key factors:
Type of Accounting Services Offered
Some franchises specialize in bookkeeping and taxes for small businesses. Others offer a fuller suite of accounting services including payroll, auditing, CFO services, etc. Define the niche you want to operate within.
Level of Personal Involvement Required
If you want to be heavily involved, choose a franchise that relies on the franchise owner to deliver bookkeeping services. Alternately, look for those that provide the option to build a remote team of bookkeepers.
Geographic Exclusivity
Many franchises allow you to buy exclusive rights to a region so you don\'t compete against other franchisees. Make sure to clarify the population size and radius specific to your franchise agreement.
Ongoing Franchise Fees
In addition to the initial franchise fee, understand ongoing monthly royalties, marketing fees, or profit-share agreements. These can range from 5-20% in the bookkeeping industry.
Technology Stack and Methodology
Evaluate the software, workflow, and methodology you\'ll be required to adopt. Make sure you understand and agree with the franchise system rather than trying to force your own.
By carefully assessing these areas, you can determine which franchise opportunity aligns closest with your personal goals and risk tolerance. Never buy based just on flashy franchise marketing claims. Do your due diligence.
Top Bookkeeping Franchise Opportunities
The bookkeeping franchise space has grown increasingly crowded in recent years. Here are five of the top franchises to consider:
1. BookKeeping Express
BookKeeping Express has over 100 US territories and has won franchisee satisfaction awards every year since 2015. They focus exclusively on outsourced bookkeeping and provide franchisees with extensive training and support programs plus a proprietary methodology and software stack. Entry costs start from $65,900.
2. The Bottom Line
As a long-standing brand with over 25 years of experience, The Bottom Line is a sound choice but lacks some flexibility for franchisees. Services also extend beyond bookkeeping into taxes and consulting which results in a higher initial investment of $150,000.
3. Padgett Business Services
Padgett offers global scale as one of the world\'s largest bookkeeping franchises. They provide franchisees with ample training and lead generation support. However, franchisee satisfaction has declined in recent years as some owners cite inconsistent support. Initial investment ranges from $94,000 to $188,000.
4. Accounting Solutions 247
A newer franchise brand founded in 2016, Accounting Solutions 247 aims to leverage technology to deliver bookkeeping services virtually. They report strong franchisee satisfaction scores by providing excellent corporate support. Estimated initial investment is $100,000.
5. The Growth Partnership
Another newer entrant, The Growth Partnership, takes a different approach than a traditional franchise model. They offer a license model giving bookkeepers access to proprietary curriculum, software, and marketing assets for $24,900 upfront and a 50% share of revenue.
Check each brands\' financial disclosures document and talk to existing franchisees to vet current satisfaction levels. Don\'t just take the franchisor\'s word when significant capital is at stake.
Estimated Costs
Bookkeeping franchise costs can vary substantially depending on the model and brand chosen. However, you can expect to budget for:
Initial Franchise Fee - Ranges from $25,000 to $150,000 to purchase your territory and rights from the Franchisor.
Office Establishment - Even working from home, you\'ll need $5,000+ to cover technology, furniture, etc. Retail spaces cost $50,000+
Working Capital - Have access to at least $25,000 in liquid capital before you begin operating to cover any startup losses.
Ongoing Fees - Monthly royalties (5-20% of revenue), ad funds (2-6%), or profit share agreements to the franchisor.
Staff and Subcontractors - Many franchises allow you to build remote teams or subcontract work instead of personally delivering all bookkeeping services which is a major advantage. Budget accordingly.
Make sure to account for living expenses for at least the first 12 months without taking an owner salary. Establishing a new franchise takes substantial commitment before you achieve consistent profitability. Consider any personal financial obligations before jumping in.
Tips for Running a Successful Franchise
Buying an existing franchise gets your bookkeeping business off the ground more quickly but isn\'t a shortcut to instant profits and market domination. Here are key tips to grow your territory:
1. Stick to the Franchise System
It\'s tempting to use your own business methods or software preferences, especially if you have prior finance experience. But you bought into an existing franchise system for a reason--trust it. Don\'t reinvent wheels unnecessarily or make rogue decisions without approval.
2. Leverage Franchisor Marketing Resources
Let the national marketing team do what they do best--run digital campaigns, facilitate networking events, manage referral partnerships big brands, etc. Supplement but don\'t attempt less efficient efforts alone.
3. Stay Visible Within Your Territory
Get locally involved with relevant in-person networking events for small business owners. Volunteer expertise via local colleges, SBA workshops, community programs. Become the trusted bookkeeping expert.
4. Keep Technologically Capable
Significant technology disruption continues across the accounting industry. Cloud software, process automation, and AI will impact bookkeeping roles. Take necessary steps to keep relevant skills. Consider enrolling in additional training programs.
5. Maintain Strong Vendor Relationships
Choose partner accounting firms, banks, business brokers, etc. wisely. Avoid thinly spread partnerships by coordinating with a select few referral sources who prove reliable. Deepen integration over time.
Evaluate early wins and losses openly. Systematically address operational shortfalls rather than getting distracted by every hiccup. You bought an existing playbook so follow it diligently.
Ready to Explore Bookkeeping Franchises?
Running a bookkeeping franchise allows you to capitalize on growing small business accounting needs without tackling the same risks of building independently. Cashflow in on demand by providing outsourced financial support with training and branding already figured out.
Does buying into an established bookkeeping franchise opportunity seem aligned with your personal finance background and entrepreneurial aspirations? Feel free to contact franchise frontrunner BookKeeping Express anytime for a free consultation on finding the right franchise fit for you.
