TopicAccountants, not advisers, selling up amidst struggles
There has been a shift in the mergers and acquisitions landscape according to advice and accounting business brokers, with struggling accountants now rushing to merge into scale or sell up entirely while advisers who might have otherwise left the industry take advantage of the extended timeline for FASEA examination requirements.
The dynamic is a reversal from early 2020, when advice business owners were lining up to leave the industry due to a confluence of pressures stemming from the Hayne royal commission and FASEA’s education mandate.
“I’ve been doing 70 per cent on broking accounting businesses in the last six months, they’re in much more trouble than advisers,” says Paul Tynan, chief executive at Melbourne brokerage CFSB. “A year ago it was 60 per cent financial planning and 40 per cent accounting.”
Struggling to adjust
The pandemic has placed increased pressure on accountants to keep up with and model a raft of changes implemented by the Morrison government and the Australian Tax Office, brokers report, including support measures like Jobseeker and Jobkeeper, as well as updated expense reporting rules catering to people working-from-home.
While mid-sized and larger accounting practices have flourished, some smaller outfits have found it hard to adjust their models and remain profitable.
“A lot of smaller accountants are saying that it’s just too bloody hard,” says Tim Lane from Sydney brokers Centurion Market Makers. “Running a day to day accounting business and compliance shop is juts getting more complex all the time, and Covid-19 has been a tipping point.”
Source: Tax Accountant Melbourne
the page is making good users with various topics, that can make many readers. The good tips are making the page so special for the users all over the page too e learning