With compliance revenues fast declining, accountants who do not diversify their services risk their future prosperity, according to an industry white paper issued by Prime Financial Group.
Simon Madder, Prime CEO and managing director, noted that while compliance work once formed the backbone of most firms, future growth requires an expanded service offering and an embrace of the changes that have “swept up” the accounting sector.
According to the white paper, a diversification of service offerings is the key for accountants to take advantage of “a golden opportunity” in a changing environment.
“Progressive firms are now aware that to avoid losing revenue you need to provide more advisory services in order to grow your client base and help those clients achieve their financial goals,” Mr Madder said.
“The clear message is that while accounting firms aren’t offering a diversity of service they will struggle."
The white paper also detailed the need for technology to be employed as an important strategic counter-balance as the compliance end of services is “eroded”.
“If accounting firms don’t start addressing technology and outsourcing to seek to reduce the cost of their compliance work, becoming more competitive and freeing up their teams' time to engage and value add for clients, then they’re going to miss the opportunity and they will lose their position as the client’s trusted adviser,” the paper said.
Mr Madder added that with financial advisers setting up accounting divisions while simultaneously offering lending solutions, “the lines between bookkeeping and the traditional accounting space are blurring”.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all