With the explosion of social media over the last decade, accountants (like a large percentage of the population), have become obsessed with themselves. A quick look at a typical accountant’s website, shows it is all about the accountant. How wonderful they are, how smart, how they have certain qualifications, their often boring and lack lustre achievements etc. Usually a lot of very big claims and sweeping statements and content that means nothing to the client at all. In contrast, the Read More…
The Tax Practitioners Board (TPB) 2017/18 annual report highlights that only 95% of practitioners are compliant with all aspects of the law.
42,561 tax agents, 15,638 business activity statement (BAS) agents and 19,550 tax (financial) advisers regulated by the Tax Practitioners Board.
ave a read of the average accountant’s website, and the word ‘innovation’ keeps popping up. Are accountants really innovating?
For the year ended 30th June 2018, 42,561 tax agents (RTA) and 19,550 tax (financial) advisers generated $330 million in tax planning revenue.
Excluding the Top 100 practices, there are another 33,770 practices producing combined annual revenues of $8.7b.
The top 100 accounting firms for 2018 billed $11.3 billion revenue. PwC was number 1 with $2.35b, and Suntax number 100 with $4.33m.
It has been estimated that over 75% of accountants are introverts.
Registered tax agents are required to meet continuing professional education (CPE) obligations.
Accountants who are members of professional bodies are required to act in accordance with the highest professional and ethical standards.
Some accountants will do anything for their clients, even break the law. The penalty for engaging in unqualified legal practice is two years imprisonment.
Accounting practices, as they are currently organised and operate, is coming to the end of an era.
Ninety percent of Australian accounting practices are stuck in the inertia trap.
Taxpayers are often unhappy with the size of their tax refund, believing it should be bigger.
My Tax is at tipping point and accounted for 46% of all 2018 tax returns lodged up to 13/08/18.
Australia has 2.2 million businesses with the average business owner being over 50 years old, and 84% over 35. The over 35 business owners search for accounting services in the following ways.
Luca Pacioli – the ‘Father of Accounting’ Luca was the first person to publish detailed material on the double-entry system of accounting. He was an Italian mathematician and Franciscan friar who also collaborated with his friend Leonardo da Vinci (who also took maths lessons from Pacioli). It is said that Luca Pacioli published works for the double entry accounting system based on procedures in use by Venetian merchants during the Italian Renaissance. Most of the accounting principles and cycles described Read More…
Dogs can be a legitimate tax deduction when used for work or business purposes.
Low income earners can get their tax returns completed and lodged with the ATO for free through Tax Help.
Garnishee notices are a tool used by the ATO to collect outstanding tax debts from delinquent taxpayers.
ATO tax debts, like all debts, are legally enforceable obligations. The ATO collects these debts on behalf of the Australian Federal Government.
The Federal Government is legislating to allow the Australian Taxation Office (ATO) to disclose information on businesses tax debts to registered credit reporting bureaus (CRBs).
Over ten years ago, forward-thinking Australian accounting practices started outsourcing part of their work and processes overseas.
Rob Nixon, in his latest book ‘The Perfect Firm’, asks this question ‘How long before a business owner does not need an accountant at all’?
Ground floor in the right area near anchor businesses is always superior. You don’t get walk-in business to level 1 as such.
An accounting practice has six main customer segments.
Did you know that you can now post news and events directly to your map listing which then displays when your practice pops up in a Google Search.
Established practices have less funding needs than new practices as they are well established and producing ongoing revenue that covers the practice costs and owner’s living expenses.
Accounting practices, like all businesses, require funding to start, operate, and grow. The funding requirements of practices vary depending upon whether they are a new practice, established practice or an expanding practice. The practice funding can be provided by the practice owners from their personal savings and assets, through debt financing, or a combination of the two. With new practices funding is required to cover the initial practice set-up costs. These costs include the office fitout, office signage, furniture, equipment, Read More…
This strategy is about creating new services that you can provide to your existing client base. It is similar to the low hanging fruit strategy, but involves more work. The practice has to create the new services, train the staff on delivering the new services, and develop a marketing plan. When considering what new services to provide ask yourself two questions. Firstly, what service would provide immense value to existing clients? Secondly, does the practice team have the skills or Read More…
The first step to providing more existing services to existing clients is to identifying which services each client currently uses.
Value adding software tools include modules on budgeting, scenario planning, business planning, valuations, profit improvement, tax planning, risk management, etc.
A good pricing strategy is one which is a good balance between the price floor and the price ceiling.
Approximately 4% of accounting practices outsource overseas at least part of their clients accounting, taxation and superannuation work.
Benchmarking involves comparing your accounting practice processes and performance metrics to the best accounting practices in the industry.
An accounting practice’s key performance indicators (KPIs) are the set of quantifiable measures that are used to gauge or compare performance.
The objective of debtor management is to minimise the time between issuing an invoice to a client and collecting payment in full.
Working capital management involves ensuring a practice has positive working capital so it is able to continue its operations.
Principals often spend too much time on activities that have no value. The Pareto analysis can be applied to time management.
Delegation is one of the practice principal’s most important management skills and if done well, saves you time, develops your people, and is a motivator.
As the business environment changes, practice owners must change. To not do so is to get left behind.
Without the discipline and focus on managing the business for maximum profit, standards and performance falls.
The professional development underinvestment occurs in the areas that are most important and critical to practice principals.
The Federal Government is once again looking at the abolition of work related tax deductions.
If we believe Sturgeon’s Law is true, then it goes without saying that 90% of accountants fit in that category too.
If a Purple Cow practice is not achievable, then being part of Sturgeon’s 10% of practices would still be a worthy goal. This would be financially rewarding of course with annual principal profits of $1m plus. If you are already achieving this, well done. If you are not, how do you get there? Firstly, you need to start with your strategy. If you currently have a stuck-in-the-middle strategy, you need to take Michael E Porter’s advice and chose one out Read More…
The number 1 sin for an accounting practice is failing to reinvest in the practice. Reinvestment can significantly increases net profits.
Buyers get a building inspection and a pest inspection report prior to buying their property but they don’t make an appointment to see their accountant.
At June 2015 the ATO advised that there were 556,998 self-managed super funds in Australia with 1,049,840 members. During the 2015 financial year 32,073 funds were established and 1,350 funds closed (by either the members or ATO). On 1 July 2016 the accountants’ exemption was repealed and ‘Recognized Accountants’ can no longer recommend the establishment or winding up of a self-managed superannuation fund unless they are appropriately licensed. Previously Regulation 7.1.29A of the Corporations Regulations 2001 permitted this without being Read More…
Two focus strategies for the accounting industry include narrow service line and customer segmentation.