How have you built your tax practice?
I started the practice from a small office in Safety Bay. At the time I had no fees and no clients. Using mainly signage and then referrals as marketing I built a small practice. Further expansion occurred when I moved to a larger office in Rockingham in February 2014.
Our focus is on small business under $2M in size and property investors. I focus on small business so that I can pass the work to staff, as the work is not “brain surgery”, which leaves time for me to work on my business. Property investment is something that I have always been interested in, so I feel like I can share enthusiasm with the client. I also like to provide added value to individual return clients, and the fee per hour income is relatively high for property investment clients.
What are your views on the future of the accounting industry?
The I return market is under regulatory threat, but the biggest threat is from machine learning and artificial intelligence. Bookkeepers will not be redundant within 2 years as software will be able to read all transactions that will then flow directly into a tax return. This also cuts our work down and clients are now aware of this and demanding lower fees. The upside of this is it will create opportunities through consolidation of practices and value added services such as tax planning and management accounting.
How do you approach tax planning with clients?
Tax planning for all business clients is “compulsory”. We find that tax planning strategies may roll over from one year to the next for some clients, other clients will only need a review from year to year. All individual clients are contacted offering tax planning services, and then offered again during their tax appointment interview.