“It’s time” was the successful slogan of the Australian Labor Party in the 1972 federal election. It heralded a new era of change in Australian politics that was characterised by collaboration and consultation. Similarly, it’s time for financial advisers and accountants to work closer together to provide the very best advice to their clients.
The accountants and financial planners who respond through the creation of corporatised businesses will be the winners in the next decade and will be rewarded for their superior comprehensive business models.
This collaborative approach will be seen in financial planners and accountants being drawn together in greater numbers over the coming decade. The underlying factors that will drive this change will be heightened consumer expectations and demands, changes to licensing and legislative requirements, and the advantages derived from skill specialisation.
There’s no doubt advisers will reap the benefits and enhanced professional standing through fee-for-service remuneration structures and the removal of outdated trail commission and volume-bonus arrangements.
Accountants are also discarding their traditional hourly fee for service models. With the two professions moving together into joint servicing platforms, clients are being charged a single advice fee that reflects the collaborative comprehensive nature of the service offering.
Far from being a revolutionary process, this is an evolution with benefits such as improved valuations of businesses from a greater focus on profit.
Surprisingly, joint business structures between accountants and financial planners are not new and have been applied with great success in regional and country areas. This is due primarily to the necessity to work together and stronger personal/professional relationships.
The benefit list
Many of the barriers to merging accounting businesses with financial planning practices can be easily overcome when the advantages are acknowledged and recognised. The main benefits for accountant offerings will be tax business structures, cash-flow planning and compliance. For financial planners, strategic planning, investment advice and estate planning offerings will be stronger.
By working as a team in a collaborative structure, financial planners and accountants will be able to provide comprehensive strategies and solutions to address the life, retirement, wealth creation and asset protection aspirations of mutual clients.
By working in a harmonious supportive environment, the reputation of financial planners and accountants can only be enhanced as clients recognise that they are the centre of a business model dedicated to servicing their individual needs and goals.
The advantages and benefits for financial planners and accountants to work together in collaborative relationships in the future will be immense and Connect is confident that both sectors will come together in greater numbers over the coming years to maximise their skills and expertise.
Connect also believes that this coming together of two highly respected professions will be the catalyst for new and innovative business models, and service and product offerings that will benefit the financial services industry and consumers.
