Accountants lax on exemption deadline
Despite the date for the removal of the accountants exemption drawing ever closer, the 30 June 2016 date is not being "regarded as big" by accountants, Connect Financial Service Brokers chief executive, Paul Tynan, said.
Tynan believes the looming accountants' exemption where they will need a licence to advise on self-managed super funds, is a chance for accountants to build relationships or integrate with financial planners to provide service continuity for self-managed super fund clients after June 2016.
"Accounting firms are regarded as the most trusted adviser by consumers," he said.
"However, while time is still on their side, accountants can grow and improve the value of their businesses by leveraging from the benefits to be derived from restructuring their practices to meet the challenges of a new dynamic financial services market place."
The deadline is also not really driving accountants to review their succession planning, with a survey showing 69 per cent of accountants did not have a formal succession plan.
The Bstar 2015 Accountants Research Report showed there had been a 39 per cent rise in concern around practice succession, putting the issue front and centre.
Tynan also noticed that generation X and Y do not want to be equity owners of accounting practices, as they are concerned about valuations, lack of cash flow, and other lifestyle issues, which is putting pressure on accounting businesses.
"Basically they are generally more comfortable receiving a large salary leaving the stress of matters relating to staffing, marketing, cash flow, etc. in the hands of practice owners," Tynan said.
On the flip side, business owners hesitate to offer equity to new entrants and potential successors, as they are unable to create revenue for the business.
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