Uberification/ Uberisation of Accounting Industry

[Apprentice]

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Hi everyone. This is mymfirst post in this forum.
I have come across this business model where individual accountants come under one umbrella using a common brand name but still provide services separately. It’s similar to forming an accounting/law firm but with a franchisee model. Unlike an accounting/law firm members don’t own the company. Someone with all the licences (BAS agent, Tax agent) sets it up and lets other use them for a service fee (similar to franchisee fee). So, the members are mostly those who are new to the industry, don’t have the necessary licences and can’t afford to buy an established franchise.

One such business is Cinch Accountants & Advisers. I was with them for a while but couldn’t afford it for too long. For me the main drawback was high monthly service fee and on top of that a cut from the earnings (I would call it commission) were taken by the company. The other issues were that the company didn’t bring clients for you and brand name was not that big to attract customers. As a newcomer I didn’t have a customer base to make enough to cover the high monthly service fee and commissions. I was loosing money pretty quickly and couldn’t go on like that. The benefits were that the company was providing IT related services, checking your work before submitting to authorities, providing liability insurance and having a process in place for tasks (which can be described as complicated).

The reason for making this post is to find out if there are similar businesses people know of. I like the business model but would love to find one that has lower fixed fees and a bit more support. Please let me know if you know any. Thanks in advance.

[Paul – FS Concierge]

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Hi And Welcome to Flying Solo [USER=113624]@Apprentice[/USER] . It is great to have you!

Thank you for joining our community and posting today.

Cheers

[steve201]

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Hi

I’m an accountant and financial advisor for 22 going on 23 years in October this year.

So I have managed to see similar franchises in the past , some work well, whilst others have contracted after reaching saturation points in the market.

Whilst I won’t publicly name them, each business type is unique and costs do. Vary for franchises.

The basic problem here is that the accountants are numerous in terms of both those that are practising and those in commerce. All compete with technology for work that used to be plentiful twenty years ago.

Today it’s the analysis or advisor components of the work that’s plentiful.

Be aware also that a franchise management structure will differ.

This may or may not attract a higher marketing/ franchise fees.

Steve

[bb1]

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In reality if you are looking at anything similar to a franchise system, be it franchise or by any other name, where someone else is providing licensing, advertising, systems, guidance, name it what you like. You are going to be paying big fee’s,, commissions, they (the franchisor or whatever), want to make a dollar out of every transaction to keep their lifestyle going. You cant expect them to setup this system, and not make a dollar.

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