The Top 20% of firms aren’t just doing compliance, they’re building scalable, profitable, advisory-driven businesses. Here are some of the key benchmarks for high-performing practices: Revenue per partner: $800,000+ Net profit margin: 25%–35% (after paying the owner a market salary) Advisory revenue: 35%+ of total fees Revenue per employee: $260,000+ Client retention: 95%+ Hourly rates: $350–$500 for senior staff & partners Staff…
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Most benchmarking tools compare businesses to the mean or median—the middle of the market. By definition, that includes underperforming businesses. But your clients don’t aspire to be average. They want to be among the best. That’s why TaxFitness benchmarks against the Top 20% of firms in each industry. It’s a method designed to: Set the bar higher Shift…
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But let’s be honest — almost all of it is compliance. BAS updates. Legislative changes. Technical compliance refreshers. Important? Yes. Enough to future-proof your practice? Absolutely not. Where’s the training in value-added services like tax planning and business advisory? It doesn’t exist. Most accountants only “learn” tax planning on the job — passed down from a partner…
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The Tax Agent Services Act now requires ALL advice to be in writing. Yet many accountants are still “winging it” with verbal advice and no paper trail. That’s not professional. That’s reckless. Here’s why a written tax planning report is non-negotiable: It protects you legally (ATO, TPB, and professional bodies recommend it). It protects the client…
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Just as financial planners need to know their clients before preparing a financial plan, accountants must know their clients before preparing a tax planning report. This means more than just income and expenses. Compliance tax returns cover profit and loss. But they rarely reveal the complete picture of the client’s affairs. What’s often missing: Assets Liabilities…
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Even with highly trained accountants and powerful tax planning software, there’s one truth that can’t be avoided. The 10-step tax planning process takes time—and that time is essential. When steps are skipped, or when not enough time is spent on each stage, the outcome is predictable: A rushed process = a substandard report Substandard reports…
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Some principals think that telling a client to “put more money into super” is tax planning. Yes — contributing to superannuation is a great tax strategy. But it’s just one tactic. Real tax planning is a ten-stage process that considers the client’s full situation and identifies multiple strategies to maximise tax savings and business outcomes. Here’s the uncomfortable truth: Even…
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Not all tax planning is created equal. The General Anti-Avoidance Rules (GAAR) in Part IVA of the Income Tax Assessment Act 1936 give the ATO sweeping powers to unwind transactions it sees as tax avoidance – and impose penalties of up to 50% of the tax payable. Key questions Part IVA asks: Was there a scheme? Was a tax benefit obtained (e.g.,…
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As accountants, we’re trusted to help clients reduce tax legally. But there’s a fine line – and some go way over it. The ATO estimates 1.6 million businesses are part of Australia’s illegal cash economy. And that’s just the beginning. Here are just a few of the 15 most common illegal tax strategies: Paying or receiving undeclared cash wages Not…
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Implementing industry: Building & construction Original service level: Annual compliance – $3,000/year Background Two years ago, a mid-sized accounting firm was providing basic compliance work for a building industry client. The business was turning over $12 million a year, but despite the size, profitability was low. Two working directors were taking home only $300,000 combined in…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2