Members of the Southern African Institute of Business Accountants (SAIBA) and franchisees of The Tax Shop stand to benefit from a new alliance that was formed between SAIBA and The Tax Shop, the first publicised franchised accounting and tax services firm in South Africa.

The alliance is intended to serve as a business relationship between the parties that enables each to achieve certain strategic objectives that they would otherwise not be able to achieve on their own.

The Tax Shop’s purpose is to expand its offering by engaging and co-creating with its franchisees and clients, the organisation’s services at the same time as establishing greater convenience for clients and franchisees by offering the following services: Accounting and Financial statements, Audits and Independent reviews, Payroll, Tax compliance and Advisory, Business statutory and compliance requirements, Business support to franchisees, Business consulting in management and development, Training and mentoring and Legal and Trust services.

The two parties have identified a number of complementary synergies that have sufficient merit to derive benefits for both parties and have decided to pursue this further.

To sustain growth, organisations such as The Tax Shop and SAIBA, need investing, ahead of the adoption curve, in people, technology, and processes, and build platforms that can quickly reach massive scale in the following ways:

Identifying synergies

 The Tax Shop and SAIBA through this alliance reorganise the respective businesses along synergies and define organisational units by our distinct advantage.  Organisational benefits include the exchange of necessary skills and share certain capabilities amongst the parties.  The objective is furthermore, to enhance productive capacity and provide a distribution system in order to complement the respective services offered by the parties. This will improve the service offering to all SAIBA members and support the Tax Shop’s franchise network as well as franchise sales to SAIBA members.

Economies of scale

Today, economies of scale, scope of knowledge and experience are intensifying across the economy, driving new models of collaboration between The Tax Shop and SAIBA.  It is envisaged that this will gain greater economies of scale, as productivity will increase and the offering will expand. Greater market awareness, knowledge sharing as a value-add to SAIBA members and Tax Shop franchisees alike, will generate monetary benefits for both Parties. Finally, the alliance partners will be able to take advantage of co-specialisation, where specialisations can be bundled together, creating additional value.

 Combining strengths

The Tax Shop and SAIBA alliance unite the respective organisation’s strengths, to influence policy that favours efficiency and innovation for all parties concerned.

This alliance we believe answers the following strategic question, “What combination of data gathering, data alliances, cooperative data sharing, co-creativity on platform, and trusting relationships with data subjects that will create a strategic, competitive advantage?”

The parties are of the view that the alliance will allow for a more expansive reach. The parties concur that synergies and potential gains in market share are much greater for both in this industry.  Strategically, the alliance may also be useful to create a competitive advantage by the pooling of resources and skills.  This may also help with future business opportunities and the development of new products and technologies.

The Tax Shop and SAIBA collaboration forms part of a sound growth strategy which will help the two organisations to improve its performance, its services and enhance knowledge and skills.

The advantages of the successful strategic alliance between The Tax hop and SAIBA include the ability for knowledge sharing, the co-development of value-add services and optimisation of technology whilst allowing the parties to retain their respective corporate identities and independence in a complementary environment.

Collaboration between The Tax Shop and SAIBA, is built on mutual respect, generosity, and relationship trust, which is a new currency in modern business.  The most influential platforms today revolve around sharing and collaborative efforts.

SAIBA, an accounting membership body with more than 6500 members and The Tax Shop, a professional services franchising organisation with more than 70, accounting, tax and payroll practices, many of whom are SAIBA members, today announced a strategic alliance to expand their respective productive capacities and improve their particular service offerings.

It is envisaged that joining forces will support complementary synergies and generate added value to SAIBA members, Tax Shop Franchisees, clients and stakeholders. Both, The Tax Shop and SAIBA, share a value system of trust, honesty and service delivery of exceptional standard with a passion to contribute to society and make the world a better place for the good of all.

How will the SAIBA and The Tax Shop business collaboration benefit you?

  1. Brand awareness: Combined marketing efforts will ensure an enhanced client reach and creating more brand awareness.
  2. People capital: Continuous development of peoples’ skills and abilities through training, mentoring and other contacts and materials customised to cater for the needs of its members and clients.
  3. Intellectual capital: Benefit through information-sharing, engagement in collaborative research and development, and design activities.
  4. Leveraged growth: To connect with the capabilities of others and make them available to clients in ways that create significant value for The Tax Shop, SAIBA platform and clients.
  5. Performance improvement: SAIBA and The Tax Shop will focus on activities that we do exceptionally well and shed other activities to others to whom we connect through a platform. We will handle a variety of complex and scale-intensive tasks, including fulfilment operations.  The net result of every activity being handled by a SAIBA or Tax Shop player focused tightly on it is overall performance improvement for all participants in the business ecosystem.

Today business models don’t last, we need to break free of past assumptions, we no longer live in a world of products, but platforms.  We will have to adapt our perspectives and our skills.  In the age of disruption, the only viable strategy for The Tax Shop and SAIBA is to collaborate, to complement each other and specialise in different areas to optimise efficiencies.

Nicolaas van Wyk, CEO of SAIBA, says The Tax Shop has been the leading force in the accounting franchise sector for many years.  “The quality of their service and support they provide makes their brand a perfect fit for SAIBA.  We believe that The Tax Shop/SAIBA partnership will enable us to deliver on our promise to members, namely to provide technical and practice support in a manner that will benefit their members financially.”