CerTax Prospectus
Contents
1. Introduction
2. The History of CerTax Accounting
3. Organisational Network / Key Personnel
4. Territory
5. Marketing
6. Taxation
7. Miscellaneous
8. Technical Support
9. Accountancy
10. Practice Development & Mentoring System
11. Instructional Manuals
12. Training Program
13. Finances / Cash Flow Projections
14. Franchise Agreement
15. Management Service Fee - What is it for !
16. Raising Finance
17. Making the Decision
18. Questionnaire
19. Testimonials
21. Bradshaw Doody, Chartered Certified Accountants
1. Introduction
Keith Bradshaw, F.C.C.A is a Chartered Certified Accountant, Founder & Consultant in Bradshaw Doody & Co., Chartered Certified Accountants and founder of CerTax Accounting Ltd.
The Franchise was started in September 1999 and ran its first training course in January 2000. Since this date over 100 Franchisees have joined our Organisation and are enjoying the benefits of belonging to a professional Accountancy Franchise.
The objectives of the Franchise can be summarised as follows:
- To Train Individuals in all the basic disciplines required to operate their own Accountancy Practice
The Training staff are all either qualified or experienced Accountants with many years involvement in Practising Accountancy. - To technically Support each Franchisee during the period of their contract in all aspects of operating their own Accountancy Practice
- To Provide Marketing Assistance by way of a telemarketing team specifically dedicated to obtaining up to 100 appointments in the first 12 months with potential clients in a Franchisees' area.
- To Monitor Practice Development ensuring as far as possible that your practice is a success, both professionally and financially.
2. The History of CerTax Accounting
Since running its first Training course in January 2000 CerTax Accounting has now trained and supported over 100 Franchisees. A sample of our members and their thoughts since joining the organisation can be found in the "Testimonials" section of this Prospectus.
Certax Accounting has been awarded FULL MEMBERSHIP STATUS of the British Franchise Association complying with all the exacting requirements necessary to achieve this.
The Organisation operates from two professional commercial offices in Chesterfield, Derbyshire
which accommodates 16 members of staff in addition to the four Directors.
3. CerTax Accounting Key Members of the Organisation
Keith Bradshaw, F.C.C.A.
Qualified as a Chartered Certified Accountant in 1987 and set up his own practice in 1989 which now attends to over 500 clients. He founded Certax Accounting in September 1999 which now supports over 100 Franchisees.
James Doody, F.C.C.A.
Qualified as a Chartered Certified Accountant in 2001 and has a vast experience in running his own portfolio of clients with a major practice of Chartered Accountants over the last nine years. James joined Certax Accounting in 2002 and has added a wealth of experience in help line support, Training and Franchisee Practice Development.
DAVID NICOLL, FFA
David Nicoll is an experienced Accounting Practitioner and has a particular expertise in marketing Accountancy Practices.
JON NEWTON, A.C.A.
Jon Newton is an experienced Chartered Accountant whose specialism is “Practice Development”
GEOFF NOBLE, C.T.A.
Geoff Noble heads the organisations technical department and as a qualified Chartered Tax Advisor is responsible for issuing guidance to members on all technical matters.
KEN GLENDINNING, ACMA
Ken is a qualified Chartered Management Accountant and combines his success as a Franchisee with his contribution to the running of the Franchise.
SHARON NEAL, AFA
Sharon is a successful accounting practitioner in her own right and lends her experience and knowledge to new and established Franchisees on a regular basis.
TECHNICAL SUPPORT
Our technical support team are all professionally qualified and experienced in an accounting practice environment.
KEITH BRADSHAW, F.C.C.A.
JAMES DOODY, A.C.C.A.
GEOFF NOBLE, C.T.A.
JON NEWTON, A.C.A
JAYNE WRIGHT – Franchise Manager
MARGARET TURNER – Franchise Co-ordinator
AMY EVANS – Franchise Liaison Manager
GRAHAM BRISCOE, F.C.C.A., C.T.A. – Technical Advisor
ANDREW HERRING, AAT
CARLA SMITH – Accounts Assistant
PAT SHAWCROFT - Assistant Co-ordinator
DEDICATED CERTAX TELEMARKETING / CALL CENTRE STAFF
MARGARET BRADSHAW - (SUPERVISOR)
ANGELA JONES
SUE OVERTON
JANET KERRIN - (TEAM LEADER)
CHARLOTTE HEALEY
AMY RODGERS
4. Territory
We will ensure that the exclusive territory allocated to yourself will be an area adequate to ensure your practice can grow to a size equal to many medium sized established Accountancy Practices in your area.
The area will contain approximately 125,000 population and a corresponding business count of approximately 3500, which we know to be sufficient to build a successful practice.
We now have countless examples of Franchisee Practices receiving substantial turnovers, in areas of the size detailed above.
5. Marketing
OBJECTIVES
The objective of most marketing exercises is to attract new clients in order to sell ones services or goods. Our objectives are no different to this but our techniques are very different from those used by most traditional accountancy practices. It is fair to say that many of our franchisees who have no sales background are apprehensive about this aspect of a business.
With our lead generation department, however, this apprehension need no longer be an issue. As a Franchisee will only join this part of the process when a prospect has been identified and indicated a wish on their part to see the Franchisee. In other words you need play no part in the initial contact, leave this to us.
LEAD GENERATION SYSTEM
Our lead generation department is dedicated to the cause of attracting new business clients to your
practice. We will initially contact prospective business clients in your area and will arrange 100 appointments during the first 12 months of your practice. This will enable you to establish a substantial initial client base. There are very many dissatisfied clients in today's business world and until they are given a viable alternative to their current Accountant they will often remain dissatisfied. Our marketing system, involving our call centre team gives your local business community this alternative in a professional and effective way. Appointments arranged, therefore, are with prospective clients with good reason to use your services which is why most Franchisees will convert between 50/75% of prospects into CLIENTS.
WHY CHOOSE A CERTAX ACCOUNTANT
Most practices of our existing Franchisees have grown for two reasons:
Lots of Accountancy & Tax work needed by today's business community
Many dissatisfied clients with the services being supplied by their current Accountant
You would also be able to offer your client the benefit of their Certax Accountant being a member of a national organisation giving access to professionally qualified Accountants, Tax Advisors and a whole range of other professional specialists should they be needed.
The following quotes are very typical from many clients of established Practices:
"I see a different accounts clerk every year, there is no personal service any longer"
"My Accountant has had my books & records for several months now and I've heard nothing from him"
"The fees paid to my Accountant this year are extortionate"
" My Accountant no longer seems to be interested in saving me tax any more"
These are only some of the reasons why clients today are dissatisfied with their current accountant and identify the many areas which, with our franchise, you could improve upon and build your client base with a better service than they are currently receiving.
INTERVIEW TECHNIQUES
Our Practice, Marketing advisor, David Nicoll is an experienced Accounting Practitioner. David will be passing on this experience as part of the training course which will also include Networking tips and "role play" techniques to assist with client meetings.
FEE LEVELS
You will need to be able to calculate fee levels in order to give clients an estimate of your costs. The Training course will include a full session on time management and fee level calculation.
PROMOTIONAL MATERIAL
At the outset you will receive 1,000 colour professional brochures, 1,000 letterheads and 1,000 business cards. You will also receive topical Branded Newsletters periodically throughout the year, along with Branded Tax Fact booklets following each Budget.
6. Taxation
Software
There are two main technical subjects within the Franchise, Accountancy and Taxation. You will be supplied with a Tax Software Package written by Drummohr Technology which has been approved by the Inland Revenue. It is not available through high street shops as it is written specifically for professional use only. You will be given a detailed demonstration of the workings of this package at one of our presentation days held regularly throughout the year.
The Tax Software will link electronically to the Accounting Software so that Profit & Loss and
Balance Sheet figures can be transferred at the click of a button and a tax calculation schedule
produced instantly.
Manuals
Model tax Return/planning files are included plus instructions on how to use the software are included in the tax manuals.
Library
A library of taxation books and study packs will be given out upon the commencement of the Initial Training Course.
Technical Support
Members of our staff comprising of Qualified and experienced Accountants will be on hand to assist with any tax related query either via telephone, e-mail or fax five days per week from 9am to 5pm
Training
Overleaf is a break down of the various topics covered within 5 tax modules which will ensure you have an understanding of the fundamental aspects of all the major taxes within UK tax legislation.
Live Cases
Because we are the only Accounting Franchise in the country which is supported by our own Chartered Certified Accountancy Practice, we are able to provide "Live Case" practice for our members as part of the Initial Training course.
Taxation Lectures
Module
TAX 1 - Introduction to tax system
Schedular System
Savings income/ Dividend income - Tax implications
Basic personal tax computations
Badges of trade
Employment / Self Employment / IR35
Taxable profit Computation
TAX 2 - Basis Periods - Commencement / Cessation's
Choice of year ends re own Accounts
National Insurance Regime
Losses
Partnership Taxation
TAX 3 - Sch E emoluments
Benefits in kind
Authorised mileage rates
PAYE calculations
Termination payments
The PAYE System
Capital Allowances
Tax Planning examples
TAX 4 - The Corporation Tax
Conversion to Limited Status from Sole Trader
Dividend policy
TAX 5 - Capital Gains Tax
Inheritance Tax
VAT
7. Miscellaneous
Office Accommodation
You will need to decide between the following options;
- Working from home
- Serviced offices
- Commercial property
Computer Equipment
You will be supplied with a laptop computer pre-loaded with the relevant software. You will need to supply a laser or Deskjet printer.
Telephones
Your business telephone line will need to cater for your business telephone, fax, e-mail and internet connection.
Stationery
We will supply you with 1000 letterheads, 1000 compliment slips, 1000 colour, professionally designed brochures and 1000 business cards.
Professional Indemnity Insurance
We will assist you with completion of application forms for the above insurance and also ensure this is in place prior to your practice commencing.
Accountancy and Tax Software
We will supply you with all the accountancy and tax software you will need in order to operate your practice in the most expedient and professional manner.
Internet
You will have a presence on our Franchisee Website, enabling a potential client to view your details at the click of a button.
8. Technical Support
You will have access to our Technical Support Team 5 days a week from 9am- 5pm daily.
This is a crucial part of the Franchise operation especially during the initial months after the practice commences.
Our team of qualified and experienced accountants will be available to receive your queries either by fax, telephone or e-mail.
You can be assured, therefore, that you are never alone during the time of your membership with our organisation.
9. Accountancy
Types of Accountancy Work
Full In-House Accountant
Where a client wishes you to effectively be their in-house-Accountant, you will request all the source documents, e.g. bank statement, cash book, invoices, VAT records etc and enter this information into our book-keeping software on a monthly or quarterly basis.
The system will then produce balanced books and records, aged debtor and creditor listings, VAT reports, trial balances and monthly accounts.
Annual Accounts
As an alternative to this, the client may attempt to keep their own books and records and ask you to prepare annual accounts and tax planning work using this information.
Our accounting software will deal with either of the above scenarios or indeed any combination of
Accounting, Tax and VAT requirements.
At our presentation day we will demonstrate the working of this software, showing how this will produce all the accounting records, VAT reports and final accounts needed to run an efficient and professional practice.
Our training course will illustrate exactly how to use the software and once you are in the real world, you will have unrestricted access to our technical help line with any queries you may encounter.
10. Practice Development & Mentoring System
PRACTICE DEVELOPMENT
A practice review panel is in place which will produce statistical information on a regular basis to help franchisees assess their practice as a comparison to other Franchisees as well as against their own initial annual expectations. Advice and recommendations will be given to ensure your practice develops at the pace that suits each Franchisee.
This will enable us to assist you in such decisions, as, whether to operate from office premises, the location of these premises, staffing levels and rates of pay etc.
MENTORING
In addition to the practice development procedures referred to above, a mentoring arrangement is in place, which will include weekly contact by an experienced Accounting Practitioner, on a one to one basis, for the first three months to assess Franchisee's progress, address any concerns and help with any technical issues that arise. After this period the Technical Support Team will be available at your request.
SEMINARS
We are committed to ensuring that our Franchisees are constantly technically updated and, as such, undertake to arrange two seminars per year, lasting two days for each meeting.
We will ensure that speakers of the highest quality are invited to speak on topical subjects relevant to the running of your practice.
11. Manuals
You will receive the following manuals:
Accountancy
This will include:
Step-by-step process for using the accounts software
Step-by-step process for reviewing accounts
Journals checklist
Model client accounts file for soletrader and limited company
Taxation
Step-by-step process for using the tax software
Model client taxation file for:
Individuals
Partnerships
Limited companies
Standard Letters
Professionally worded letters divided into the following categories:
Non-limited Company entities
Limited Company entities
Taxation
Company Secretarial
Marketing
Introductory mail shot letters
Marketing Plan
Suggested fee levels
Selling theory in relation to Accountancy
Proven selling guide for Accountancy Practices
12. Training
|
Week 1 |
Week 2 |
Week 3 |
Week 4 |
Monday am |
Tax 1 |
Superior Signs VT case study |
Self Assessment Case Study 5 & 6 |
Review of Home Study, Accounts check list |
Monday pm |
Tax 2 |
Superior Signs VT case study |
Self Assessment Case Study 7 & 8 |
Limited Company Minutes , Resolutions & Incorporation |
Tuesday am |
Accounts - VT Including VT+ |
Superior Signs VT case study |
Sole trader Accounts prep . Case Study 3 |
Limited Company Accounts |
Tuesday pm |
Accounts - VT Including VT+ |
Superior Signs VT case study |
Sole trader Accounts prep . Case Study 3 |
Limited Company Accounts |
Wednesday am |
Tax 3 |
Sole trader Accounts prep . Case Study 1 |
Self Assessment Case Study 9 & 10 |
Limited Company CT600 |
Wednesday pm |
Manual Tax Computations - Tax 4 |
Sole trader Accounts prep. Case Study 1 |
Self Assessment Case Study 11 & 12 |
Sales |
Thursday am |
Tax 5 |
Self Assessment Case Study 1 & 2 |
Marketing Research |
Sales |
Thursday pm |
Book-keeping Superior Signs |
Self Assessment Case Study 3 & 4 |
Marketing Research |
Practice Management |
Friday am |
Corporation Tax |
Sole trader Accounts prep. Case Study 2 |
Review |
Standard Letters/ Final questions |
Friday pm |
Computerised Tax Returns |
Sole trader Accounts prep. Case Study 2 |
Review |
Course Closure 12pm |
13. Finances
Franchisee Projected Profit & Loss Account
| Home Based Practice | Office Based Practice | Office Based Practice | |
| Early Stages | Established | ||
| £ | £ | £ | |
| Sales | 55,000 | 120,000 | 250,000 |
| Less: | |||
| Overheads: | |||
| Rent, rates, light & heat | - | 4,000 | 17,750 |
| Marketing costs | 3,000 | 3,000 | 5,000 |
| Wages | - | 36,000 | 87,000 |
| Computer sundries | 600 | 1,100 | 2,000 |
| Repairs & renewals | - | 1,000 | 2,000 |
| Postage & stationery | 2,500 | 3,500 | 17,000 |
| Motor expenses | 1,200 | 2,500 | 9,000 |
| Telephone | 800 | 1,200 | 3,000 |
| Management service fee | 4,675 | 10,000 | 14,500 |
| Sundries | 750 | 1,200 | 5,000 |
| Bank interest | 480 | 480 | - |
| Bank charges | 360 ______ |
360 ______ |
1,500 ______ |
| Total costs | 14,365 ______ |
64,340 ______ |
163,750 ______ |
| Net Profit | 40,635 ______ |
55,660 ______ |
86,250 ______ |
| Estimated value of business belonging to franchisee | 55,000 ______ |
120,000 ______ |
250,000 ______ |
These figures are by way of illustration only and whilst no guarantee can be given that these will be attained, it is our opinion that they represent realistic and achievable results.
Generally, Accountancy Practices are valued at one times gross recurring fees (GRF), but the final value usually takes into account any client losses during the first year after takeover.
The length of time it will take to achieve the above results will vary and depend upon the aspirations of each individual Franchisee.
The home base practice figures are, we feel, the maximum that can be achieved using your home as an office.
The office based practice would be necessary for those who wish to take their practice to the next level of profitability.
The office based example shown would be achievable within three years and turnover could be increased further with additional staff.
14. Agreement
Brief outline of the contents:
1. Definitions
2. Grant of the Franchise
3. Duration of the agreement
4. What the Franchisor must do during the term of the agreement
5. What the Franchisee must do
6. Option to renew
7. Payment of fees
8. Intellectual property
9. Records & Accounts
10. Equipment & products
11. Control of standards
12. Training
13. Insurance
14. Improvements
15. Force Majeure
16. Sale of business
17. Death, incapacity or insanity of the Franchisee
18. Franchisee's employees
19. Incorporation
20. Termination of the agreement
21. Rights and obligations of the Franchisor and Franchisee following termination
22. Restrictions following termination
23. Consequences of termination
24. Partnership and Agency
25. Waiver
26. Overriding provisions
27. Notices
28. Headings
29. Severance
30. Law
31. Set off
32. Restrictive Trade Practices Act15. Summary of Start-up Costs
Marketing Campaign - Launch Marketing campaign, and lead generation. IT Equipment This includes a laptop with Intel Processor, Microsoft office, Anti-virus software, Professional Accounting and Taxation software & tuition. Library including Tolley's Tax Guides and relevant Training study packs. Initial support covering Helplines for additional assistance in the initial period of trading as well as a dedicated Mentor during the first 3 months of trading. Initial stationery, complete inventory, personalised to you as Franchisee, including professional Brochures, Letterheads, Compliment Slips and Business Cards. Franchise Licence Fee giving entitlement to practice using the CerTax Accounting Trade Mark and use of CerTax Accounting Designatory letters. Training programme and initial support provided by professionally qualified accountants and other relevant specialists. The course is conducted in a working practice environment, complete with live case examples and all course material (including operations manuals). Marketing material including professionally worded Editorials for newspaper articles as well as Advertising templates pre-worded with logo. (Including accommodation allowance) Total before VAT (Reclaimable) £28,750
______+ Working Capital There will be a management service fee to cover support and periodic seminars of 8.5% of turnover.
YOU SHOULD MAKE PROVISION FOR A MOTOR VEHICLE FOR BUSINESS USE
16. Raising Finance
Certax Accounting have arrangements in place with all the leading UK Banks that would enable you to raise finance for the initial franchise fee investment.
We will help you to present your case to the banks including the preparation of a business plan and cash flow projections.
17. Making The Decision
Why choose this Franchise:
a) Supported by an established firm of Chartered Certified Accountants.
This is currently the only established Accountancy Franchise which is supported by the owners existing Accountancy Practice. (Bradshaw Doody & Co.)
The Practice was started by Keith Bradshaw in July 1989 and now has over 500 clients. The importance of this arrangement means that franchisees benefit from the experience of Qualified Practising Accountants who not only educate the franchisees in the theory of tax and accountancy but also in the day to day practicalities of how to apply this theory in the real world.
b) Commercial Angle on how to make the Practice Profitable.
Another important effect of being associated with our own Accountancy Practice is that we are able to show you not only how to provide the services, but also how to provide the service in a commercially profitable and professional manner.
c) Constant Technical update.
We will ensure that your are kept up to date with all and any changes in legislation affecting the operation of your practice. This will be achieved by running seminars twice yearly where we invite outside specialist speakers to update us on topical issues occurring at the time. You will also receive newsletters periodically and updated software in relation to accountancy and tax.
d) Added security of being ACCA members.
Prospective franchisees have the reassurance that we as the Franchisor have not only satisfied the requirements for full membership of the BFA but also as individuals are members of the Association of Chartered Certified Accountants and as such have an obligation to ensure all our business affairs are conducted in a trustworthy and professional manner.
f) Financial Services.
Our financial services department will enable you to offer the full range of financial services and products to your clients in a similar way to those offered by many established high street practices.
18. Questionnaire
19. Testimonials
The Accountancy & Tax Advisory Franchise That Embodies Quality & Professionalism.
"The standard of the training course has been borne out by the results that I have
managed to achieve since starting. The Telesales Marketing got me off to a really good start
and I was completing work 2 weeks after my launch. This gave me added confidence
which resulted in signing up 7 clients within my first 6 weeks. I am delighted with the
results which have exceeded both my expectations and my business plan."
Michael O’Brien - Derby
"I have been a CerTax Accounting Franchisee for just over nine years and my results
during this time have exceeded all my expectations in terms of turnover, client numbers
and profitability. Although the training course is very comprehensive I could not have
achieved these results without the CerTax Technical Support line. Because of this I was
able to deal with virtually any kind of business client, small, large, limited company or
non-limited company and all their corresponding tax issues and at the end of the day
build a profitable practice for myself."
Sharon Neal - Wakefield
"With accountancy experience and a burning ambition to be my own boss and operate a
business that fitted in with my lifestyle, the decision to invest in accountancy and taxation
franchise Certax Accountants was relatively easy. The Certax opportunity caught my eye
in The Franchise Magazine because it offered a comprehensive marketing programme that
would help me to communicate effectively the wealth of expertise and high standards that
Certax Accountants can offer to their clients. After further online research, I visited Head
Office and was impressed with the company's professionalism and took it from there.
As part of the franchise package Certax put me through a five-week training programme,
which I have found very useful because it acted as a refresher course on limited companies
and filled the gaps in my tax and accounts knowledge for partnership and sole trader
businesses. Ongoing training is also available at the bi-annual seminars. At these events
topics discussed include the new tax legislation. In terms of support the company has
helped me target clients by doing telephone introductions on my behalf and the Head
Office team are always on the other end of the phone if technical help is required."
Vincenzo Rubino - Cornwall
"I wanted a change of pace and so moved from London to Suffolk, where I considered
retiring. However, I soon found myself wanting a new challenge. Franchising came to
mind and, because my business background lay in finance, I wanted to find something in
this industry. Through having a look at what opportunities were out there I found Certax
Accounting and liked what they were offering. I had an interview with Certax's founder
Keith Bradshaw and the business appealed further - I liked the people, I liked the work, I
liked the franchise package. I found the five-week training course very helpful. It let you
get to grips with the business and was accommodating to the extent that someone without
much finance experience could pick it up too. When I launched the business six years
ago, Certax helped find my initial customers and through advertising and marketing I've
continued to grow the business. One thing that surprised me was the amount of business
that I've generated through customer referrals alone.
A Certax franchise has the potential to be developed to a size that you want - be that a
one-man band or a multi-unit business with a number of employees. The work is
enjoyable and success is achievable if you're prepared to put the work in."
Richard Hexton - Suffolk
20. Bank Contacts
To assist franchisees with any financial requirements they may have we would recommend the banks who have already assisted a number of our existing franchisees:
| HSBC Franchise Unit, 12 Calthorpe Road, Birmingham, B15 1QZ www.hsbc.co.uk |
Ken Braddock Tel: 0121 455 3438 franchiseunit@hsbc.com |
 |
| Lloyds TSB plc Franchise Unit, 2nd Floor, Northgate House, Kingsway, Cardiff, CF10 4LD www.lloydstsbbusiness.com |
Mr. Richard Holden Tel: 02920 355971 franchising@lloydstsb.co.uk |
 |
| NatWest Natwest Franchise Section, Level 2, 2 Waterhouse Square, 138-142 Holborn, London, EC1N 2TH www.natwest.com/franchise |
Mr Mark Scott Tel: 0800 092 9117 franchise.retailbanking@natwest.com |
 |
| The Royal Bank of Scotland plc RBS Franchise Section, Level 2, 2 Waterhouse Square, 138-142 Holborn, London, EC1N 2TH www.rbs.co.uk |
Denise Aitchison Tel: 0800 092 9117 FranchiseRBS.RetailBanking@rbs.co.uk |
 |
Business support finance is available from our banking partners above.
Please note that information regarding our own financial position can be acquired from Companies House in the form of our Financial Accounts.
21. Bradshaw Doody & Co. Chartered Certified Accountants
Bradshaw Doody & Co. is the founders highly successful Chartered Certified Accountancy Practice that was established in 1989
The experienced and qualified staff of the practice are involved with the technical support and training within the Franchise, which ensures that the Franchisee's receive the benefit of their vast practical experience.