Alan Padgett has spent the majority of his life in the accounting industry beginning in the 70s when he co-founded the first Georgia-based tax and accounting franchise model designed with the accountant in mind. Recently he and his team developed another exciting venture with an emerging franchise called Succentrix Business Advisors. With a claim to fame as the first accounting franchise using only cloud-based software systems, Succentrix makes life oh so much easier and efficient for the accountant/advisor and client.
“We put real time Cloud accounting and payroll technology in place so we can use our time and expertise advising and planning with our clients. Being proactive allows us to put our emphasis on what the clients really want, real-time advice.”
Before cloud-based software, accountants would visit a client and go over all the accounting paperwork such as income, expenses, payables, receivables and check stubs. Then, weeks later, the accountant would give the client an accounting report for that period of time.
Today, our cloud-based software allows the Succentrix Advisor the ability to provide reporting in real time. This means in minutes not weeks. The same is true with payroll. In a matter of seconds, a payment for rent travels to a client’s P&L (profit and loss) balance sheet. Boom, done. Padgett says “We put real time Cloud accounting and payroll technology in place so we can use our time and expertise advising and planning with our clients. Being proactive allows us to put our emphasis on what the clients really want, real-time advice.”
“The amount of money and time operating our franchise in the cloud is dramatically less than operating from a desktop ,” Padgett says. Consider that as a Succentrix Business Advisor, you don't have to purchase software, invest in much equipment, IT support or have much payroll to cover since you are operating in the Cloud. The number of staff members is much less too. Plus, The Succentrix franchise is not expensive to enter, $19,500.
In general, CPA firms are low risk and high profit. Profits can easily reach 30% of revenues. Forbes estimates the NET profit margin for accounting, tax prep, and bookkeeping and payroll services is 21% with a cost of sales at 7%.
“In putting together our company,” Padgett mentions “we have a service support fee where by franchise owners pay 7%. We want to give some of that back each year. Every November new tax laws come out. As a result, this is normally a very busy and tough time for accountants. So we write our franchisees a check worth 1/7th of the service fee (capped at $500) in hopes our advisors can spend the windfall on training, review courses or even on Christmas presents.”
Currently, Padgett has many interested parties from around the country meeting with Succentrix to start a franchise and is hoping to award ten-fifteen franchises by the end of the year. Padgett is known for his hands-on management style and likes to put in the time and effort so each franchise owner is able to reach their goals.
From the first phone call to opening the doors of your own Succentrix Business Advisors business, it is about a 90 day process. It begins with two week of school which trains you on software, operations and payroll and marketing systems. The Succentrix team, comprised of hand-picked members with more than 100 years’ experience, will assist you with getting set up in your territory and office.
Padgett says what makes a great Succentrix Business Advisor is someone who has a very strong accounting or finance background and someone who has great people skills. Padgett’s philosophy is “if you work hard every day and start each day with the right attitude, the day will take care of itself.”