In Kath’s post this week she challenges accountants to see opportunity in obtaining a licence, in order to become more than a compliance function. It is an interesting way of viewing licensing, and quite a big shift from where the industry was 18 months ago.
There was a general consensus that there would be a rush for accountants to get their licence as the deadline loomed. However, that rush did not happen. Why? Because accountants in general, wanted to sit back and see if this new regime would affect their businesses. As Kath points out, it is business as usual for most – except those who are advising clients on the establishment of a self-managed super fund (SMSF).
If you consider however, that in just 15 years, 70 per cent of the investable wealth in our country will be held by gen X and Y, there will most likely be a greater demand for SMSF establishment as this new generation takes stock of how to build their wealth.
It would seem the measured, wait-and-see attitude of most accountants has certainly done them no harm in the short term. However, longer term, in order to grow their businesses or put in place a succession strategy, it would most likely be prudent to expand service lines and the ability to give clients what they need.
If as an accountant you can answer yes to the following questions, then you will know whether it’s time to get a licence
- Do you have any new business coming in the door? Do you need a new way to start a conversation with prospective clients?
- Are you genuinely interested in being a central component of your clients’ wealth team?
- Do you believe SMSF’s are a good vehicle to plan for retirement for a large majority of clients?
If your answer to these three questions is yes, than licensing is your next logical step.
The race to comply that we all heard about was more likely an illusion than a necessity for a large part of the industry – it’s up to the individual business owner to pick their timing based on what kind of practice they want in the future.
