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.
Accountants who are members of professional bodies are required to act in accordance with the highest professional and ethical standards.
Taxpayers are often unhappy with the size of their tax refund, believing it should be bigger.
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.
The 4 fastest growing Success Tax Professionals practices for 2018 achieved an average 77% fees growth.
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…
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.
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…
The benefits of your practice providing a service guarantee to clients are as follows
The first step to providing more existing services to existing clients is to identifying which services each client currently uses.
A good pricing strategy is one which is a good balance between the price floor and the price ceiling.
An accounting practice’s key performance indicators (KPIs) are the set of quantifiable measures that are used to gauge or compare performance.
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.
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.
Two focus strategies for the accounting industry include narrow service line and customer segmentation.
The worst strategic error is to be stuck in the middle, or to try simultaneously to pursue all the strategies (i.e. low cost, differentiation, and focus).
To make a Purple Cow practice is extremely difficult and probably only one in a thousand practices will be able to achieve this.
Differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market.
Value adding services are an opportunity for accountants to make their work more meaningful, interesting, challenging, and profitable.
Operating a small business is one of the most rewarding yet challenging experiences and the difference between business success and failure is sometimes marginal. There are also specific activities that can be undertaken to improve business outcomes depending on your position in the business life cycle. An experienced commercial accountant can “add value” to your business far beyond tax compliance by reviewing your business performance from a commercial and risk management perspective. Cash flow management, efficiency through maximising production rates, Read More…
For 2015/16 the total Australian accounting industry revenue only grew 3.2% or $580m to $18.7bn.
A recent survey has shown that for under 35’s – 50% prepare their tax return themselves or get family and friends to do it for free.
I run a digital marketing business, Pixelpi. As a small business owner, I don’t have a lot of time to spend on accounting. In fact, my time literally equals money. It’s a double edged sword. The more time I spend on accounting, the less billable hours I can do. The less time I spend on accounting, the more money I lose through lapse accounting knowledge and application. It is therefore essential that I can trust and rely on my accountant Read More…
Is your Most Trusted Advisor your Accountant or your Financial Planner?