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FREQUENTLY ASKED QUESTIONS

What sort of person does SBA small business accounting look for?

The main attribute we look for is the determination to develop a successful business. We recruit accountants and non-accountants alike, but you do necessarily need to have a finance background. General business acumen is important, and people skills are essential as the franchisee will be responsible for developing relationships with existing and prospective clients, as well as looking after staff needs.

What financial assistance can I obtain if I need to?

We are developing relationships with the major

Can I talk to some of your existing franchisees?

Yes you can- once you have been in for an interview we will give you access to the whole network, and we would encourage you to speak to at least 6 franchisees as part of your research.

How can I be sure that you will do what you promise?

Don’t take it from us - speak to some of the existing franchisees here and overseas.

On what basis do you choose your franchises - how selective are you?

We are highly selective because we do not want franchisees to join us who are not going to be successful. We look for ambitious, disciplined and capable people with a positive outlook – and who are happy, pleasant individuals.

Who will be my link with you after I have opened the business?

The Director of SBA Australia, Roger Booker, is always available for ongoing assistance either directly or by email.

How much IT knowledge do I need to have?

We will only accept business owners who have a good degree of knowledge and experience in using a PC. This is due to the fact that a large part of the work involved is software driven.

Do I get an area allocated to me?

We have exclusive territories. Franchises are only established in populated areas that will sustain an SBA.

How much working capital will I need?

You should reach break even in less than six months, and can begin to draw a wage thereafter. You will need sufficient capital to cover this period.

How do I start looking for premises?

Contact all real estate agents who deal in retail leasing. Check out your local paper. If you have chosen a specific area and are unable to locate vacant premises, visit or write to all shop owners in the vicinity, shop owners are always considering moving on. From our experience finding a suitable location is rarely a problem.

Do you train me? Who pays for my training? Where do I go for training?

Training is for a week at your new premises. Outside Melbourne, the travel, accommodation and reasonable expenses of your trainer are born by you. Thereafter SBA will continue to provide necessary support to enable your business launch.

Is there an extra cost if I wish to bring my partner on the initial training course?

That is no problem and at no addition cost. While subsequent training of your employees is your responsibility, we can carry out that training for a specific fee.

Do you provide instruction and operational manuals?

Yes – our manuals are available via our intranet base. We also have a knowledge data base, basically an A-Z on accounting and tax, and includes frequently asked questions.

What can I sell and what can I not sell?

If you are a Registered Tax Agent converting to SBA, you will be trained on various aspects relating to accounts; Tax Return completion, book keeping etc and you can offer these services to your clients. The normal procedure is to act for our core customers and then at a later date to move on to acting for larger clients outside our core service, once you have developed a sound experience base

If you are a BAS Agent, accountant or bookkeeper joining the SBA network, you will be trained on various aspects relating to accounts; BAS returns completion, book keeping etc and you can offer these services to your clients. The normal procedure is to act for our core customers and then at a later date to move on to acting for larger clients outside our core service, once you have developed a sound experience base.

In addition, we also encourage our franchisees to write mortgages through our license agreement with Adam Parore Mortgages or Michael Bevan Mortgages.

How much net profit can I earn from my operation?

This is really down to you but we want you to build up your turnover and profits consistently, aiming for an achievable turnover of $240,000 + after 3 years. The normal “rule of thumb” for tax practices is that a third of your turnover covers the costs of running your franchise, with a third for staff remuneration, leaving you with a third of your turnover as profit at EBITDA (Earnings before Interest, Tax, Depreciation and Amortization), however we would expect that the SBA system provides for significant efficiencies and improvement on these figures.

Is the business seasonal?

Not as much as the traditional Tax Practice. The SBA system calls for monthly processing of much of the clients data, reducing the processing load at Quarter and Year End.

What fees do I charge?

We give you guidance on the level of fees that you should charge your clients but the final decision, based on the profile of your territory is up to you.

What hours do I need to work; do I spend all my time completing client accounts and tax returns?

You should be prepared to work normal office hours (typically Monday to Friday inclusive, 9am to 5pm plus an occasional early evening or weekend appointment). In your first few months, you should never spend more than half of your time on client accountancy affairs, as you need the balance of your time for marketing and development of your business, and office administration.

Do you have any minimum performance targets?

Only sensible ones. If you do not achieve annual sales of $60,000 in year 1 (building from a zero base to a monthly fee base of $6,000 per month by the end of the first 12 months), and an additional $90,000 in subsequent years, then you are not operating our franchise effectively. If the fees charged by you to your clients do not exceed this year on year increase then you will be in breach of your contract, and we can terminate your Franchise Agreement. These figures are our minimums, and by keeping to the business model you should comfortably exceed these levels of growth.

How do I find my clients?

Your visible retail shop presence should grow your client base by 50%. Overseas, our advertising has proven very successful in generating new business and to supplement this with local advertising also works well.   We cannot emphasize enough the importance of networking in your local area and the benefits this will bring to your business. Our most successful franchisees are those that approach this area with confidence and enthusiasm, appointing staff in a timely fashion and focusing on Business Development.

What advertising and promotional expenditure do you incur and do we have to contribute to it?

There is a National Advertising/Brand Awareness fund into which you pay at the rate of 2% of your turnover. This fund is used to promote the brand on a national basis. You are responsible for your own local advertising and are contractually obliged to spend a nominated minimum amount during the period March to June.

May I have a copy of your Franchise Agreement?

Yes, as part of the Due Diligence process we provide a copy of the draft agreement for your perusal.

Are there any returns that I need to submit?

Yes, franchisees must submit a monthly activity report to the Franchisor no later than the fifth working day of the following month, which gives details of client enquiries and sign ups, and revenue information for the last completed month. A royalty fee of 6.5% is applied to your turn over, reducing to 5.5% when annual turn over reaches $250,000. In addition, franchisees are required to submit copies of their own Quarterly BAS’s and annua ltax returns and accounts no later than 30 June annually.

What systems do you have for keeping franchisees in touch with yourselves and each other? Do you hold seminars?

We are new to Australia, but anticipate having Regional Meetings as soon as these are warranted. In the interim there will be regular phone hook-ups and a chatroom on the website. There will also be the option to attend the National Conference in New Zealand until SBA Australia has sufficient franchisees to have conferences here.. These Conferences are held once a year to discuss sharing of best practice, up-skilling, and to update the network on planned developments for the coming year.

What IT hardware and software do I need? And what do you supply?

You need to supply your own PC complete with Microsoft operational software. All franchisees will require MS Office Pro, APS, BankLink, MYOB, QuickBooks and appropriate Payroll software.

If I perceive that it will be too expensive to go into shop front premises in my area. Is it absolutely necessary for me to make this move?

If you are a Registered Tax Agent, YES it is! This is the way we will build a strong brand overseas. We have franchisees who have managed to find good shop front premises when at first glance there appeared to be nothing remotely suitable. It is location, location, location translated as visibility, accessibility and affordability. This will help you to achieve the growth that we both seek. In exceptional circumstances we will permit you to start from home or office for a limited period.

If you are a BAS Agent / Accountant / Bookkeeper then we accept that you may wish to start from your home office, but would expect that within 12 months you will need to move to an office.

Does this contract permit me to sell my business?

Yes, you are able to sell your business at any time. A neighbouring franchisee may be interested, or we might be able to find a new franchisee to take over your business. The Franchisor must approve the prospective purchaser.

What restrictions might affect my rights to sell the business?

Having assessed the value of your business, you must offer it to us in the first instance. Assuming we do not purchase your business you have the right to sell it to any other third party who meets the franchise system criteria. You must sell your business as a going concern.

For how long is the franchise granted?

The term of the Franchise Agreement is 20 years with an initial term of 10 years and one renewal for a further 10 years at that point.

What if I already have clients before becoming an SBA franchisee?

We have taken on some accountants who already have a block of clients of their own acquired during the period before they joined us. Also, some of our existing franchisees have acquired blocks of fees from retiring accountants. In both these cases we have been asked to consider whether some relief can be given against charging our normal rates of royalty. Our policy for both these scenarios is subject to a minimum annual fee base of $25,000 being involved, we will allow the fees introduced or acquired to be kept in a separate pool and for two years only we will accept royalties at the rate of 3.25% on these fees. After two years these fees will be subject to full royalties.



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