Introduction
Here's how it works
Business and Independent Contractor Opportunities
BAN’s Franchisee Profile and Evaluation
Financial Elements
Training

Are you a highly experienced bookkeeper or accountant (not chartered) and have you always wanted to work for yourself from home or business premises, yet hesitated to do so because of the risk involved? When starting your own business, you would have to face tough issues like:

• Sourcing a good client base
• Placing expensive advertising
• Creating and printing costly brochures
• Attempting to establish a name and reputation
• Maintaining your name and reputation in the market place
• No support, assistance or time off

You will also, as a self-employed bookkeeper/accountant, need to incur additional costs by constantly attending expensive seminars to maintain your knowledge, skills and software technology in continually updating:

• Complex amendments in taxation legislation;
• Multifaceted amendments to accounting policies in G.A.A.P. and I.F.R.S.
• Registered audit firm accounting working paper requirements and standards;
• Keeping up-to-date with accounting and other software advancements;
• Upgrading of accounting software as well as maintaining older versions for those clients who have not upgraded;

Business Accounting Network has identified franchising “through a networking concept” as an excellent mechanism for halving the risk for self employed bookkeepers and accountants while enabling the franchisee to keep abreast of on-going amendments to law governing business today, for far less than it would cost to attend seminars without having a network in the industry.

On the output level, the target client base is SMEs (Small and Medium Enterprises), as they are attracted by a network’s branding activities, which imply a strong component of quality assurance and fidelity. They are also reluctant to deal with large professional firms, considering them too expensive for their needs. Rather, they prefer to deal with franchisees, small businesses themselves.

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Through a licensing agreement, BAN contracts with an Associate (single operator franchise) or an area office (management franchise) to own and run a Business Accounting Network enterprise. Territories are owned by Business Accounting Network, which allows Associates to operate in an area within a reasonable location to their base site, even though it may overlap with other Associates’ areas. The criteria for placing an Associate with a client is based more prominently on the skill level of the Associate matching the client’s service requirements and the capacity of the Associate at the time rather than on just the base area of the Associate in relation to the client.

BAN takes the risk away

Join BAN’s independent contracting team and enjoy the best of both worlds – running your own business whilst enjoying the support of a highly professional company with a well known brand name and excellent reputation with clients and medium/large registered audit firms.

BAN offers:

• Advertising, including yellow pages, special features in local newspapers, direct mail; high class brochures; triangle calendars;
• Use of the well known BAN (Business Accounting Network) name;
• The experience of a well-established franchise company;
• Templates of all customised BAN stationery, reports and forms (e.g. Management account templates, time sheets, various payroll forms, working papers, interim financial reports, etc),
• Improvements to templates and systems from time to time;
• The following procedure and assistance of new work inflows: Administer the phone calls of prospective new clients or enquiries from the auditing firms;
  • BAN will assist in setting up appointments with prospective client/audit firms and will consult with potential clients and the audit firm partner (if applicable) to ascertain the nature of services and work required and the level of Associate (category) needed to suit the requirements of the client. In certain circumstances, information received telephonically is enough to pinpoint the suitable Associate for the job.
  • Ascertain the availability of the Associates in the particular category closest to the area of the client,
  • Give a job description brief to the selected Associate and, if necessary, introduce the Associate to the client.
  • Give the engagement Associate any technical advice and suggestions they may require before commencing the job.
  • Ongoing marketing and relationship building with the medium and large registered accounting and audit firms;
• Brand Management, including conceptualisation, design and implementation of brand items, such as branded diaries, banners, caps and T-Shirts, brochures, triangle calendars, etc.
• Training on proven business methods for new franchisees,
• Monthly technical training sessions to keep abreast of ever changing income tax, VAT and accounting standards amendments;
• Telephonic and e-mail accounting and tax support at any time (Associates in Category 5 may also be approached for consulting and support),
• Negotiation of discounts on large orders of software or any other commodity required by the entire network;
• Opportunity for Associate/franchise feedback through regular meetings;
• Continued review of recommended hourly charge-out rates to ensure competitiveness in the market place;
• Assistance and advice in opening a Management Franchise (area office), as well as assistance in compiling a business plan, budgets and cash flow projection,
• Assistance in selecting an office (please note, the franchisee will be responsible for signing the lease agreement and rental), and
  • Advice on office layout and workstation design, office furniture (pre-defined), telephone systems, computers, printers, computer networking, signage, etc
  • Training of employees in BAN’s systems and templates prior to opening of the office (please note, prospective employees must have the necessary bookkeeping and accounting qualifications or be qualified by experience); and
  • Assistance in the initial recruitment of employees prior to opening of the office.

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Single Operator Franchise (Associate)

In this franchise format, the franchisee (Associate) carries out the work him/herself. The business is home based and the type of work is executive, i.e. bookkeeping and accounting services.

In this situation, the Associate will need to:

• Be fully trained in an accounting and auditing practice (firm) with excellent knowledge of both the Value Added Tax Act and the Income Tax Act;
• Be able to perform the service of writing up client’s books from source documentation to management accounts, usually at the client’s premises;
• Work on his/her own;
• Market the franchise locally to generate business when required;
• Deal mainly with businesses;
• Work from home but essentially be mobile as the majority of work is conducted at client/business premises;
• Work regular office hours, at least most of the time.

Management Franchise (area office)

As your business grows, it may become ideal to employ staff and the franchise could develop into a management franchise (area office). This opportunity is not available to all Single Operator Franchises as:

• The areas available to open a management franchise are limited;
• The prospective management franchisee would need to show proven ability of personnel and management skills (prior experience and references will be required);
• The prospective management franchisee would need to meet or exceed a very sound knowledge of taxation laws and hands-on accounting skills (current proven ability will be required);
• BAN’s focus is on developing and supporting the Single Operator Franchisees (associates). Management Franchisors would only be considered for areas where it would be preferable to have an area office and where that area office will not compete unduly with the area’s associates.

Franchise Agreement and Operations Manual

The relationship between the franchisor and the franchisee is built upon the Franchise Agreement, BAN’s Code of Conduct and the Operations Manual. These documents should ensure the protection of both parties. The Franchise Agreement is a legal document between franchisor and franchisee (Associate) and is one of the most important documents relating to a BAN association. It is only in this balance that a franchised business can prosper and happy relationships develop.

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The Ideal profile of a Single Operator Franchise (Associate)

Few applicants will usually be successful in the application process to become an Associate (single operator franchise) or establish an area office (management franchisee) of Business Accounting Network. With this in mind, we consider a franchisee to be a unique person. As a franchisee, you will be running your own business, yet within the parameters of BAN’s business format.

What is the profile of our ideal Associate?

• Either trained as an article clerk (must have completed articles) or worked in the client accounting division of a medium to large audit firm for at least 5 completed years;
• Must have left the accounting and auditing profession (firm) no more than 5 years prior to application;
• Hold a degree or 3 year diploma relative to the industry;
• Able to qualify as a “Tax Practitioner” as set out by the “Independent Regulatory Board for Tax Practitioners”, who will prescribe the standards of qualifications and experience required by a tax practitioner from time to time;
• Chartered accountants are, unfortunately, excluded from being considered as Associates due to the conflict of interest in our target market, the registered audit firms.
• Be extremely computer literate, particularly with Excel and accounting and payroll software programmes, for example, Pastel, Accpac, VIP, etc.
• Share the association’s passion for bookkeeping and accounting and higher level accounting services;
• Prepared to uphold the values of the brand;
• Have the ability and confidence to work entirely on your own, yet a willingness to be a team player;
• Be an energetic self-starter with a professional approach to business;
• Have excellent interpersonal and communication skills – be people orientated;
• Must be law-abiding, ethical and have integrity;
• Should present a professional personal image at all times;
• Self motivated;
• Highly disciplined;
• Service-orientated, hard working and willing to put in long hours when needed to meet all monthly and annual deadlines for a varied client portfolio;
• Be credit worthy with financial resources.

What is the profile of our ideal Management Franchisee (area office)?

Shares the same profile as that of our ideal Associate listed above, but with the additional requirements of:

• Proven ability of managing skilled personnel in the accounting environment with a "hands-on" approach, as well as management and business skills;
• Must be a "go-getter" with a strong will to succeed;
• Totally service-orientated and people friendly;
• Understands the importance of BAN’s operating standards;
• Understands that increased personal involvement at area office level equals a higher competence level in staff performance and increased profits;
• Has an amount of 40% to 50% of the development costs or purchase price in unencumbered funds

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Single Operator Franchise (Associate)

Franchise fee:
Approximately R 3 000 plus VAT.
This fee is variable and includes:
• Initial legal costs incurred in conclusion of the Franchise Agreement; and
• Preliminary training of the Associate.

Envisaged establishment Costs:
Roadworthy motor vehicle;
Approximately R 25 000 including;

The Single Operator Franchisee (Associate) has an office based at home. The prerequisite of BAN’S condition of having a home office is that the office must be an appropriate room utilised exclusively for the purpose of conducting BAN’s business.

Hardware
• Laptop (recommended: 64 x 2 dual-core; 21.Gz; 4 gb DDR2; 250 gb HDD; DVD super-multi DL).
• Laser printer
• Colour printer (recommended multifunction colour printer with print/scan, copy and fax facilities)
• Flash drive
• External back-up drive (recommended - not less than 320 gb)

Internet access
• ADSL or 3G internet access

Software (all software listed below is compulsory)
• Microsoft Windows (Please note that Apple Mac software is not compatible with Pastel)
•Microsoft Office – with Outlook, Excel and MS Word)
• pdf printer driver (can be downloaded from the internet)
• Acrobat reader (can be downloaded from the internet)
• Antivirus
ₐ Firewall

Office Equipment
• Dedicated office telephone line
• Fax machine - stand alone
• Answering machine
• Calculator
• Cell phone (for your business' exclusive use)

Stationery
• BAN writing pads
• BAN columned pads
• BAN business cards (free)
• BAN file carrier bags (minimum 2 bags)
• BAN 2 x self ink stamps (free)

Motor Vehicle
A very reliable, roadworthy motor vehicle for your business’ exclusive use.

Initial Working Capital:
Six months gross salary you received at your last employment.

Management Franchise (area office)

Franchise fee:
Approximately R10 000 plus VAT
This fee is variable and includes:

• Initial legal costs incurred in conclusion of the Franchise Agreement;
• Assistance in compiling a business plan, budgets and cash flow projection,
• Assistance in choosing an office (please note, the franchisee will be responsible for signing the lease agreement and rental), and
• Advice on office layout and workstation design, office furniture (pre defined), telephone systems, computers, printers, computer networking, signage, etc
• Training of employees in BAN’s systems and templates prior to opening of the office (please note, prospective employees must have the necessary bookkeeping and accounting qualifications or be qualified by experience); and
• Assistance in the initial recruitment of employees prior to opening of the office.

Establishment Costs:
Approximately R150 000 including VAT for a 5 workstation office plus conference room with a small, well equipped kitchen, e.g. microwave, small fridge, kettle, utensils, etc.

Six months gross salary you received at your last employment plus the value of your debtors book (Vat inclusive).

Management Service Fees and BAN Membership Fund

Each Single Operator Franchisee and Management Franchisee is required to pay a monthly management service fee equivalent to 10% of net turnover plus VAT calculated on the previous month’s fees received. Net turnover shall mean and include all fees received by the single operator franchisee and all fees received by an area office, whether or not those fees were received by clients referred by BAN management office or by clients obtained by the franchisee, less VAT collected from the client and paid to the Receiver of Revenue.

The Management Service Fees are payable by the franchisee on the 30th day of the first calendar month following the calendar month to which such fees relate. Amounts are payable by electronic transfer and the onus is on the franchisee to ensure payment.

BAN Membership Fund
In addition, a monthly membership fee is payable to the BAN Association Membership Fund, administered by the BAN Administrator. The monthly fee payable is currently R600. This fee covers the following:

• Pastel Accounting site licences (all Pastel Versions);
• Pastel Payroll site licence for 10 employees (franchisee pays for additional employee licences if required);
• Member of the Pastel Accountants Forum (Dealership);
• Membership to the Cape Town Chamber of Commerce;
• Your own e-mail box (BAN domain), e.g. david@ban.co.za
• Web-hosting;
• The fund will pay for designated Associates to attend seminars identified by the franchisor in order to keep up to date with legislation amendments affecting our clients business. The Associate must obtain all reference material at the seminar and in turn must present the important elements of the seminar to all Associates at a technical training session.
• The fund will pay for one Associate to attend the seminar and copies of the seminar notes for distribution to all Associates;
• Refreshments at all technical training sessions;
• Material for technical training, e.g. copies of manuals, training material, notes to training material, etc.;
• Annual diaries for each franchisee with the BAN logo (area offices can buy these diaries from the Fund for their staff);
• Stock of BAN stationery for sale to BAN franchisees and their staff, being columned pads, writing pads;
• Stock of BAN carrier bags for lever arch files for sale to BAN franchisees and their staff;
• BAN self inking stamps (for working paper files and addressee information on envelopes);
• Gifts or flowers to fellow Associates for special occasions or sympathies;
• Year end function with partners and team building.

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Training will be conducted at the Tokai Management office (Southern Suburbs, Cape Town), which may be some distance away and require trainees (including the Franchisee) to arrange travel, accommodation, etc. It is a prerequisite that the franchisee, before being accepted as a BAN Associate, has passed a written examination on their technical abilities set by BAN as well as having the following minimum skill and tertiary requirements:

• Either trained as an article clerk (must have completed articles) or worked in the client accounting division of a medium to large audit firm for at least 5 completed years;
• Must have left the accounting and auditing profession (firm) no more than 5 years prior to application;
• Hold a degree or 3 year diploma relative to the industry;
• Able to qualify as a “Tax Practitioner” as set out by the “Independent Regulatory Board for Tax Practitioners”, who will prescribe the standards of qualifications and experience required by a tax practitioner from time to time;
• Be highly computer literate, particularly with Excel and accounting and payroll software programs, for example, Pastel, Accpac, VIP, etc.

Single Operator Franchise (Associate

We provide two day’s intensive training for our single operator franchisees and will cover the following:

Day 1

• Terms of engagement with clients
• Terms of engagement with audit firms
• Stationery – standard templates
• Budget control – client work
• Work schedules
• Timesheets and invoicing procedures
• Pastel Accounting dealership
• Financial reporting templates
• Payroll templates
• Standard filing procedures (paper and computer)– office and clients
• Monthly clients – services, documentation and procedures
• Client care
• Advertising
• How to manage your business effectively

Day 2

• Working paper templates for audit firms

Management Franchise (area office)

There is no doubt that the level of competence the management of an area office exhibits is the critical success factor of any franchisee, when coupled with the commitment, dedication and hard work of a new BAN office. The franchisee must have the ability to train subsequent/replacement staff at a level of efficiency sufficient to ensure the communication and maintenance of BAN’s high standards and level of service. It is necessary that the Management Franchisee will receive training on topics that do not include their staff. In addition to the training and templates given to Single Operator Franchisees, Management Franchisees training will also cover:

• Staff appraisal forms and appraisal procedures
• Review standards of working paper files
• Review standards of monthly accounting and statutory returns before submission
• Incentive bonus scheme
• Staff productivity analysis
• Staff training (external, formal internal and on the job)
• Monthly billing and time write offs

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