Accounting is essential for businesses, covering financial reporting, tax compliance, and advisory services. With evolving tax regulations and small business growth, demand for financial services is rising, providing more opportunities for accounting businesses.
Franchising offers an easier way to enter the industry vs. starting a business from scratch. With brand recognition and proven systems, an accounting franchise is a stable, profitable opportunity in a growing market.
The Growing Demand for Accounting Services
There are several factors contributing to the increasing need for accounting services. These include:
- Complex Regulatory Environment – Due to frequent changes in tax laws and financial regulations, most businesses require professional accounting services. This “complex tax and regulatory environment” is helping to “drive strong demand for accountants and auditors” (U.S. Bureau of Labor Statistics).
- Stricter Tax Laws – A tightening in tax laws has “increased the need for financial auditing”, particularly in the retail and finance sectors (IBISWorld). As a result, accounting service providers have seen an increase in business.
- Small Business Proliferation – There has been a significant rise in small businesses post-pandemic. The U.S. Department of the Treasury reported that “the United States is averaging 430,000 new business applications per month in 2024, 50 percent more than in 2019”. This surge in entrepreneurship has led to a continuous demand for affordable accounting solutions.
- Globalization and Economic Growth – Both economic growth and the continued globalization of businesses is increasing the need for accountants to “prepare and examine financial records” as well as provide their “expertise and services related to international trade and international mergers and acquisitions” (U.S. Bureau of Labor Statistics).
- Technological Advancements – The integration of technology in accounting practices requires expertise in new software and systems. While this will certainly “increase accountants’ efficiency, this change is not expected to reduce overall demand” (U.S. Bureau of Labor Statistics).
Market Size and Growth Potential
The accounting services market has experienced consistent growth both globally and in the United States in recent years, with projections indicating this upward trend will continue.
Globally, the market “will grow from $636.03 billion in 2024 to $660.65 billion in 2025 at a compound annual growth rate (CAGR) of 3.9%”, and it’s projected to “grow to $800.68 billion in 2029 at a compound annual growth rate (CAGR) of 4.9%” (The Business Research Company).
In the United States, the current market value in the accounting services sector is US$ 240.16 billion with a projected growth rate of 10.3% CAGR to reach US$ 640.73 billion in 2034.
Current Trends in the Accounting Franchise Industry
Prospective franchisees should be aware of current trends shaping the franchise sector. These include:
- Technological Integration – The adoption of AI and automation tools is streamlining tasks such as data entry and analysis. While the demand for accounting services continues to increase, technology is allowing accounting firms to improve accuracy, reduce manual errors, and increase efficiency. Not only does this make it possible for them to meet this demand, but it allows them to focus more on advisory services, strategic planning, and client relationships.
- Focus on Niche Markets – This refers to specialized services targeting specific industries, such as healthcare or real estate accounting. Catering to unique client needs not only increases the quality of the services offered, it is also an effective way to set an accounting firm apart from its competition.
- Remote Service Delivery: The rise in remote work opportunities has “given way to flexible, location-independent work arrangements, enabling accountants to provide services from virtually anywhere”. The increase in virtual consultations and cloud-based accounting platforms enables franchises to serve clients nationwide without physical offices, facilitating “seamless communication and data sharing” and expanding “the talent pool for accounting firms, allowing them to hire skilled professionals from diverse geographical areas” (Accounting for Everyone).
4 Advantages to Choosing an Accounting Franchise
While business ownership comes with various challenges, starting an accounting franchise offers distinct advantages.
#1 – Established Brand Recognition
Accountancy services are crucial to a business’s success, which means it’s all the more beneficial to operate an accounting franchise with an established brand name. A well-recognized brand instills trust among clients, making it easier to attract and retain customers while providing a competitive edge.
#2 – Proven Business Models
Franchises also offer tested operational procedures, reducing the trial-and-error phase for new business owners. This is particularly important for accounting franchises because the industry involves complex processes like financial reporting, tax preparation, and compliance with ever-changing regulations. A proven business model allows accounting franchises to focus on growing the business while maintaining high standards of service.
#3 – Comprehensive Training and Support
Franchisors provide ongoing training and support in industry best practices and regulatory compliance. This is key for accounting franchises since the industry requires a deep understanding of tax laws and financial regulations. Not only does this training and support reduce the risk of non-compliance, it enhances the quality of services offered and maintains the accounting franchise’s credibility.
#4 – Marketing and Lead Generation
Franchisees benefit from national marketing campaigns and established client acquisition strategies, allowing franchisees to quickly build a steady and loyal customer base. Since building trust in the financial services industry takes time, this is a key benefit to owning an accounting franchise.
Interested in Owning an Accounting Franchise?
An accounting franchise is an attractive opportunity for entrepreneurs considering the market size and current trends of the industry. Not only is it a fast growing sector, technological advancements are improving the quality of services, which add to the success of accounting firms. Whether you’re interested in an accounting franchise or a different industry, FranNet is here to help. One of our expert franchise consultants will evaluate your goals and skills to match you with the right brand. Schedule your free consultation today to get started!
