We asked Daren to share his thoughts with potential new TaxAssist Accountants franchisees on the key issues in the industry today.
Do you believe the current economic situation is a barrier to growth in the accounting sector?
My answer to this is no, because we have seen over many years that tax, accountancy and advisory services will always be in demand. Accountants who are visible, accessible and offer a wide range of services are in a prime position to benefit from this demand.
Our network of accountants has experienced a number of economic and global challenges since the founding of the TaxAssist franchise business in 1995. These have included recessions, credit crunches, fluctuating interest rates, inflation and of course the pandemic. Despite these challenges year in, year out, our network sales and client numbers have grown, proving that our model, is largely recession and pandemic-proof.
We have testimonials from many franchisees who have joined us during difficult times for the accounting sector and broader economy who are thriving, having grown substantial practices in their time with us.
There is huge scope for growth within our franchise network for individuals who want to build a business that fits with their plans and ambitions. Many of those who have joined us now have turnover in excess of £500,000 with strong profitability and a good work/life balance.
Can you talk about the evolution of accountancy services going forward?
Traditional compliance services continue to be the core business for our accountants. Yet, with accountants becoming ever more involved as trusted advisors for their clients and local markets, services have evolved and will continue to develop to meet demand and to reflect changes in technology.
Core accounting services are increasingly being supported and supplemented by complimentary and advisory services. We have been working with our franchisees over the years to develop these services to help them meet their clients ever-changing needs. Our accountants can now support their clients in areas such as bookkeeping software, financial planning, business restructuring, cash flow forecasting, R&D tax credits, inheritance tax planning, payroll, pensions, investments, mortgages and protection insurance, amongst others.
It is certainly true to say that we are in a period of significant change and disruption in the accountancy sector. Staff recruitment, online accounting software, AI and digitalisation, regulatory changes and complex tax legislation are all hot topics, yet each provides a chance to help accountants support their clients in different ways. Changes can help them to embrace efficiencies, capitalise on emerging opportunities and plan for the future, all of which will help to forge stronger client/accountant relationships, which are key to a practice’s success.
Are the services of an accountant currently in high demand?
The latest survey of SME Employers by the Department for Business* has emphasised a number of positive outcomes for accountants which are mirrored by the TaxAssist network’s experience of servicing over 80,000 clients across the UK.
Demand for accountancy services is growing, particularly since the pandemic, when so many reached out to their accountants for advice on how to survive and subsequently thrive.
This is borne out by the increases we have seen each year in the number of new client leads we have delivered to our network, increased traffic to our website, alongside continued referrals and walk-ins to shops.
The UK is a nation of entrepreneurs and with ever more people looking to set up their own business or find ways to build new income streams, demand for accountants will continue to rise.
Have you taken on many new franchisees in 2023?
Interest in becoming a TaxAssist Accountant has continued through the year, particularly for those who are well capitalised and are seeking to purchase an accountancy practice for sale with a proven immediate income stream.
Accountancy practices are a valuable asset and practices for sale are in high demand, with more buyers than sellers.
The economic situation has shaped the minds of some potential franchisees, with increased time spent on business planning, finance raising and due diligence. However, the appetite is very much there for those who recognise the opportunity that growing an accountancy practice provides, to change lifestyle, take control of their finances and build an asset for their future.
TaxAssist Accountants has a proven model which has been working for almost 30 years. A dedicated central team supports our franchises through every stage of their development. We ensure they can benefit from the scale of the network, our central expertise and the shared learnings of over 200 practices across the UK, improving their chances of success.
Will AI replace accountants?
AI simply can’t replace accountants. The accounting profession requires human judgement and expertise which cannot be replaced by machines.
It is the accountant who will interpret complex financial data, support strategic decisions and help clients to understand the context behind the numbers.
We also believe that building an accounting practice on technology alone lacks a critical element – relationship. Clients still want a human element in whatever services they may need and to know and trust their accountants.
Despite these limitations we do see huge potential in the development of AI and technology. It will allow accountants to work far more efficiently (and profitably) and support their clients in ever more ways. It may be that aspects of traditional accounting tasks are replaced or superseded, but this will free up accountants to expand their role, becoming strategic advisors to clients. We see huge opportunity here, with advisory services strengthening the client/accountant relationship.
Is this a good time to invest in a TaxAssist franchise?
Yes – our franchisees’ success proves that the demand is there to enable you to build a substantial practice. The changes we have referred to around tax legislation, economic pressures and technology are all accelerating this demand.
As a franchisee you are in business for yourself but not by yourself – you are part of a network. We offer a supported and quick route into practice allowing you to bypass the process of developing a business on your own. The support we provide across all key areas of an accountancy practices operations will help you focus on growth right from the outset and reduce risk by using a proven model.
We know that clients highly value our services and want to meet their accountant face to face. TaxAssist shops offer that ideal setting for building those relationships.
* The Longitudinal Small Business Survey (LSBS) was conducted between 1st November 2022 and 30th April 2023 and surveyed UK businesses in the private sector with fewer than 250 employees.
Daren Moore joined the TaxAssist Board of Directors in 2018 supporting all group technical and practice development functions. Over the last five years he has taken the lead on a number of group wide initiatives. These include the development of a tax consulting business and an in-house payroll bureau to support franchisees and the launch of a TaxAssist Financial Services business. This has broadened service delivery and created new fee and profit opportunities for franchisees. Daren's LinkedIn profile can be found here.
