In speaking to a group of our accounting based financial advisers recently, it became abundantly clear that there are really only a few months each year where accounting firms have the capacity to focus on strategic planning.
Most people know that accountants face an extremely busy time each year in June in the lead up to financial year end. While for some there is a slight respite in early July, in reality the busy period for accounting firms continues right through until the December holiday period.
With most accounting firms taking a well-deserved break over the quieter December/January holiday period, that leaves just four months of the year where accountants can focus on activities which are more than just ‘business as usual’. This is the period where accounting principals can take the opportunity to focus on strategic planning. It is at this time that the Principals may look at growth opportunities by reviewing and optimising the services that they provide to their clients.
One such opportunity presents itself through the removal of the accountants’ licensing exemption. With the deadline for the removal of the exemption now less than two years away, accountants need to think carefully about their limited and short windows for action. While two years may seem like a long time, there are a number of steps that accounting firms need to take to ensure that they have a compliant business solution by 1 July 2016.
For firm principals yet to consider to how their business will respond to these changes, they will need to undertake the following steps:
- Gather information on the options available
- Assess the options, for example:
– Stop providing SMSF advice to clients
– Refer clients to an authorised representative
– Join a licensee as an authorised representative
– Apply for a licence
- Determine which option aligns best to the firm’s business strategy
- Undertake steps to implement the selected option. Depending on the option selected, this may include:
– Changing the business model to cease providing advice
– Establishing a referral arrangement with a trusted partner
– Undertaking additional education requirements, including completing the RG 146 training and any other training required
– Establishing and documenting new business processes required to apply for and maintain a licence
- Embedding the selected business model across the firm
Based on the accounting cycle, it would appear that the next time where accountants will have the capacity and opportunity to take action and consider these steps is February 2015. However, if accounting firms are yet to complete at least steps one and two, they run a real risk of not having a compliant solution in place by 1 July 2016.
It is critical that accountants think now about their timeline for action to ensure that their business is not left behind in this rapidly changing environment. For those accounting firms viewing the industry changes as an opportunity for growth, the earlier a business model that will act as a platform for growth is established, the sooner the firm and their clients will reap the benefits.
David Lane is the chief executive of Count Financial Limited.
