There is a growing demand for bookkeepers across Australia as time-poor small business owners grapple with increasing compliance requirements.
It’s a great time to be a finance professional or bookkeeper working in your own business.
Becoming a franchisee can also bring many advantages.
You still get to enjoy the freedom and flexibility of running your own business. But, you’ll also have the chance to obtain valuable resources and support, backed by an established and trusted brand.
So, whether you’re already working in finance for a large company and wanting to break out on your own, you’re considering a career change, or you’re returning to the workforce after a career pause, the bookkeeping industry has a lot to offer.
Here’s what you need to know…
How to Start Your Own Business in Bookkeeping
Are you a seasoned professional bookkeeper or a finance professional wanting to transition into being a bookkeeping business owner? Starting your own business may seem daunting, but it’s not that complicated to get started here in Australia. Here are some things to consider:
Ensure you have the right qualifications
Bookkeeping qualifications can be obtained through TAFE and other educational institutions such as The Institute of Certified Bookkeepers (ICB). If you want to be a registered BAS Agent, there are some additional minimum qualifications that are required.
Decide about your business structure
Will you work in your business under a sole trader structure? Or do you plan to work in a partnership or set up a company instead? Consider the pros and cons and what structure will best suit your needs.
Register your business
You can’t operate a business without an ABN. It’s easy to get an ABN (and it’s free). Also, consider whether you need to register your business name. The Australian Securities and Investment Commission (ASIC) says you must register a business name if you carry on business within Australia and you’re not trading under your own name.
Consider your target markets and scope of work
Think about your target markets. What sized businesses or industries do you want to provide services to? Will you only provide services to a particular geographical area or will you focus on remote and online services?
What types of services will you provide?
Some bookkeeping franchisees provide basic bookkeeping services, such as data entry for accounts, reconciliations, and financial reporting. Some franchisees in the bookkeeping industry provide a range of other services, including preparing Business Activity Statements (BAS), assisting with tax compliance and payroll, as well as advisory.
Is Providing Bookkeeping Solutions to Businesses a Good Side Hustle?
With the rise of the ‘gig economy’, many finance professionals are exploring bookkeeping services as a lucrative side hustle.
Providing bookkeeping solutions can be an excellent way to supplement your income and earn some more money, while still maintaining the security of your ‘day job’.
There are plenty of bookkeeping business opportunities out there, especially working for time-poor small business owners and entrepreneurs who lack the in-house expertise to manage their own finances.
Despite advances in technology in recent years, you would be surprised how many business owners rely on ‘shoebox books’ as a method of financial management.
Unless a small business owner is dealing with very few transactions, storing receipts in a shoebox and entering them once a quarter for tax purposes is not an effective business model in the long term. Bookkeepers can add significant value to small businesses that need more effective financial solutions. This includes:
- Financial reporting
- Cash flow monitoring
- Payroll processing
- Preparing their end-of-financial-year finances for their tax agents
- Helping businesses to comply with ATO and government requirements
- Digitising business accounts with their owner’s chosen accounting software package, such as MYOB, Intuit Quickbooks, Reckon or Xero.
By helping businesses take control of their finances and manage them effectively, bookkeepers can make a direct impact on a business’s financial growth.
The key to success with a bookkeeping side hustle is to start small and focus on gradual, sustainable growth. Focus on providing a quality service to a small number of clients first. This will help to build your reputation and your networks so you can grow your franchise business over time. In the long term, your bookkeeping side hustle could grow into a substantial source of income.
The Initial Investment for a Bookkeeping Franchise
Initial investment costs for bookkeeping franchise opportunities vary. First Class Accounts offers low startup costs in comparison to many other bookkeeping franchises. There are minimal set-up and overhead costs and, most importantly, no heavy rental commitments.
The First Class Accounts team focuses on providing franchisees with the right support they need to grow their businesses. In return for your low investment, you will get access to an effective business model with ongoing guidance, support, and accredited training from a trusted and recognised brand.
When dealing with a national franchise network like First Class Accounts, you can choose to run your business from anywhere in Australia. You will also have the freedom to determine the scope of work and the size of your business based entirely on your business goals and personal aspirations.
Are Bookkeeping Franchises Profitable?
The earnings of bookkeeping professionals vary according to their qualifications, experience, and scope of work. There is no standard schedule of fees for bookkeepers – you can set your own rates. However, it’s important to be realistic about what the market will bear and do your research on pricing so you can be competitive in the marketplace.
Hourly Rate vs Fixed Fees
You can choose to charge an hourly rate to your clients or a fixed fee. Fixed monthly packages that can tailor support for small businesses are very common in the bookkeeping industry.
With a fixed monthly package, your clients can be sure you have time allocated to help them with whatever they need. This way of pricing is also great for your cash flow as a bookkeeping business – it’s a win/win.
What is the Best Bookkeeping Franchise to Join?
Each professional bookkeeping franchise opportunity must be assessed on its merits. Consider what you need (and want) out of a franchise business.
Closely examine what each franchise opportunity provides to their franchisees, including:
- Start-up support
- Ongoing training
- Compliance assistance
- Any professional accreditation
- Marketing and promotional support
- Ongoing costs related to the franchising system
- Access to accounting software (and software training)
- Partnership programs and alliances that can help you to grow your franchise
- Access to policies, procedures, and systems that can streamline your bookkeeping business
How Can I Become a First Class Accounts Bookkeeping Franchisee?
Are you interested in joining a trusted and established bookkeeping brand with a national franchise network?
Contact the team at First Class Accounts to find out more about franchise opportunities. We are Australia’s largest bookkeeping franchise.
