Accounting firms that want to enhance their client value proposition and lock in a licensing solution ahead of the imminent removal of the accountants’ exemption can establish a professional financial planning business in just three months and be profitable from day one, according to a leading Certified Practicing Accountant.
Experienced accountant and co-founder of GPS Wealth Greg Holman said accountants can slowly move into financial planning or accelerate the process and start offering advice in just 90 days by partnering with a well-resourced and experienced licensee.
“There’s a misconception that accountants have to offer comprehensive investment advice from the outset but many start small with life insurance and lending before gradually expanding into other areas of wealth management such as holistic strategic advice and estate planning,” he said. “It all depends on the individual practice and their clients’ needs.”
Holman said there were many different ways for accountants to introduce financial services to clients including hiring a qualified professional adviser in house or entering a joint referral relationship with an established advice business and refer existing clients to the new entity.
He added that it was often simpler for an accounting firm to initially introduce financial services on a referral basis which can speed up the process and minimise expenses.
GPS Wealth, which was established by Holman and Rob McGregor, is a specialist financial services dealer group which currently provides licensing and compliance services to over 100 financial advisers and 70 accountancy firms nationally.
In the past 12 months alone, over 49 accounting firms have gained a limited authority from GPS Wealth with more than 104 accountants attending the group’s two-day RG 146 courses.
Holman said the benefits of combining traditional accounting and financial advice weren’t only financial but allowed accountants to satisfy their duty of care to clients by raising awareness about their potential need for life insurance, income protection and TPD cover.
It also enabled accountants to put a fence around their clients and remove or reduce the need for them to go elsewhere for advice.
“In an increasingly competitive environment, accountants who can provide more than tax advice and accounting services but a complete, integrated wealth management solution under one roof will become indispensable,” he said.
“Accountants have nothing to lose and a lot to gain by expanding into financial services, provided they do it right.”
Source: GPS Wealth
