However, profits can vary significantly depending on several factors, including your client base, services offered, premises, brand strength, ambition and the level of support behind your business. For accountants considering self-employment or franchising, understanding these factors is essential to maximising income and long-term value.
What Affects the Profitability of an Accounting Business?
1. Know Your Client Base
Running a successful accounting practice is about more than revenue alone - the type of clients you serve directly impacts profitability.
Some accountants focus on high-net-worth individuals and businesses with complex financial needs. These clients often pay higher fees for specialist services, but they also require more time, expertise and resources.
Others choose to work with smaller businesses and individuals, charging lower fees but benefiting from a more stable and diversified income stream. Losing one or two clients in this model has less impact on overall revenue.
A balanced client portfolio can help protect income while supporting sustainable growth.
2. The Services You Offer
The services you provide play a major role in your earning potential and the long-term value of your practice.
While compliance services such as accounts and tax returns are essential, many successful firms increase profitability by offering additional services, including:
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Payroll
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Tax planning and consulting
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Advisory services
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Financial planning
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Mortgage and insurance services
These services can be delivered in-house or via trusted third-party partners, creating multiple income streams and strengthening client relationships.
Financial services are heavily regulated, so joining a franchise like TaxAssist Accountants, which already has approved partners and systems in place, can provide a significant commercial advantage.
3. Location of Your Practice
Your practice location affects visibility, trust and client acquisition.
Accountants working from home or back offices often rely heavily on digital marketing and referrals. In contrast, a high-street or visible office location can also attract walk-in clients and establish a strong presence within the local business community.
A shopfront or visible office reinforces brand awareness, supports local marketing efforts, and provides a professional meeting space for clients and staff.
4. Your Brand Name and Reputation
Experience, reputation and brand recognition all influence the fees you can charge.
Practices with strong branding, positive online review and a client-first culture are often able to command higher prices. Established brands also benefit from increased trust, which shortens the sales cycle and improves client retention.
As part of a recognised national brand, TaxAssist Accountants franchisees benefit from instant credibility and brand recognition from day one.
5. Marketing and Business Development
To attract new clients and retain existing ones, a strong marketing strategy is essential.
Successful accounting businesses typically invest in:
- An SEO-optimised website
- Local search visibility
- Social media and email marketing
- Networking and community engagement
- Client referrals and online reviews
Marketing takes time and consistency. Many accountants find it more profitable to use specialist support services, allowing them to focus on client work and growth.
TaxAssist franchisees benefit from professional marketing support, national campaigns, and local marketing guidance.
6. The Support Structure Behind Your Business
One of the biggest barriers to growth for independent accountants is capacity.
Many sole practitioners become the bottleneck in their own business, spending all their time delivering work rather than growing the practice.
To scale successfully, you need:
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Proven systems and processes
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The right software
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Delegation and outsourcing options
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Technical and compliance support
By employing staff, outsourcing tasks, or joining a franchise, you can focus on building client relationships and increasing turnover.
Ambitious accountants may even expand by opening multiple locations or acquiring fee banks.
7. Accountancy Fee Pricing
Setting the right pricing strategy is critical to profitability.
Accountants may use fixed fees, time-based billing, or monthly direct debits, but fees must always reflect the true workload and deliver profit.
It’s important to:
- Review competitor pricing in your local area
- Clearly define the scope of work
- Increase fees when work exceeds the agreed terms
Remember, it’s better to have fewer profitable clients than many unprofitable ones. Avoid becoming a “busy fool”.
8. How Much Is an Accounting Practice Worth?
A successful accounting business should deliver two financial benefits:
- A strong ongoing income
- A valuable fee bank asset to sell in the future
While new practices may incur losses in the early years, well-run firms build value over time.
Currently, accountancy practices typically sell for 0.8 – 1.0 times gross recurring fees, with well-managed and scalable practices achieving a premium.
Are Franchised Accounting Practices Worth It?
Franchising offers a proven route into business ownership, with higher success rates than many independent start-ups.
Accountants who choose franchising benefit from:
- Training and ongoing support
- Peer networks
- Client leads
- Marketing and business development support
- Established systems, software, and technical guidance
Franchising allows you to be your own boss - without being on your own.
How Much Can You Earn with a TaxAssist Accountants Franchise?
TaxAssist Accountants franchisees consistently build profitable and scalable practices.
Many aim to achieve:
- 400+ clients
- £300,000+ turnover within five years
Some franchisees choose a lifestyle business with minimal involvement, while others work full-time and grow beyond £500,000 turnover.
Typically:
- One third of turnover covers franchise and operating costs
- One third is spent on staff
- One third is retained as profit
Franchisees who embrace efficiencies and systems can increase profitability to up to 40%.
To find out more about how to join the TaxAssist Accountants network call 0800 018 8297 or submit an enquiry here.
