{"id":11797,"date":"2024-09-06T10:46:44","date_gmt":"2024-09-06T00:46:44","guid":{"rendered":"https:\/\/smithink.com\/?p=11797"},"modified":"2024-10-02T14:04:30","modified_gmt":"2024-10-02T04:04:30","slug":"accountants-should-be-key-providers-of-financial-advice","status":"publish","type":"post","link":"https:\/\/smithink.com\/2024\/09\/06\/accountants-should-be-key-providers-of-financial-advice\/","title":{"rendered":"Accountants should be key providers of financial advice"},"content":{"rendered":"\n
\u201cI\u2019ve been lucky to get some good overtime, but I\u2019m being taxed quite a bit. Should I salary sacrifice into my partner’s super? Debt recycle? Or just stay the course with working, saving, and paying down the mortgage?\u201d<\/p>\n\n\n\n
This is the kind of question accountants are frequently asked. And naturally so. Accountants are among the most trusted professionals globally. Numerous surveys, research, and studies consistently confirm this. Therefore, it makes sense that accounting clients look to their accountants for solutions that can help them improve their overall financial position.<\/p>\n\n\n\n
However, unless an accountant holds an AFSL, they cannot provide this kind of personal financial advice. At best, they can provide a referral to a financial adviser who may or may not be able to assist, depending on their capacity. At worst, their client hits a dead end.<\/p>\n\n\n\n
Firstly, they provide tax services to the majority of working and retired Australians. According to the latest ATO statistics, 63 per cent of Australia’s 15 million-plus individual taxpayers used a tax agent to prepare and lodge their return.<\/p>\n\n\n\n
Secondly, accountants are custodians of 27% of superannuation assets. They have access to or are providing advice on SMSFs and an estimated 25-40% of individuals’ super assets, insurance, debt, and other investments.<\/p>\n\n\n\n
Finally, 96% of SMEs use accounting services to help operate their business.<\/sup><\/a>1<\/sup><\/a><\/p>\n\n\n\n When an industry is serving this many individuals, there will always be an overlap between what falls squarely under accounting and what veers into advice. But over the decades, accountants, regulation, technology, and professional associations have dropped the ball when it comes to capitalising on this privileged position.<\/p>\n\n\n\n This convergence enables accountants to enhance their relationship with clients by providing even greater value through offering affordable financial services that are wanted and needed. Our own research showed that people are more likely to engage with a financial service from their accountant.<\/p>\n\n\n\n By having safe and compliant technology, accountants can effectively leverage their book, improving revenue and increasing the value of their business. And, because digital advice is client-led with the option of human interaction, it has zero to minimal impact on day-to-day business operations.<\/p>\n\n\n\nDigital advice technology and regulation finally align<\/h2>\n\n\n\n