So, is Having an Accountant and a Bookkeeper enough for you as a business owner or do you need more meaninful support?
As a business owner, you’ve likely assembled a team to help keep your finances in order—a bookkeeper, an accountant, maybe even a tax advisor. You might think your bases are covered. But here’s the hard truth: unless someone on your team is focused on your best interests—not just ATO compliance or their own firm’s objectives—your business could be missing critical opportunities or red flags.

The Compliance Trap: A Double-Edged Sword

From 1 July 2024, new protections for whistleblowers to the Tax Practitioner Board (TPB) are coming into play. While these changes aim to catch tax dodgers, they also add another layer of stress for those already playing by the rules. Accountants, under increasing pressure to toe the ATO’s line, are often more concerned about avoiding penalties than finding ways to boost your profitability.

The added pressure on accountants to stay on the right side of the ATO often leads to an overemphasis on compliance. Accountants, under increasing scrutiny, may prioritise avoiding penalties over identifying financial strategies that could benefit your business. The compliance mindset – while necessary – can sometimes act as a barrier to claiming relevant expenses, proactive tax planning and further education on all these matters.

What does this mean for you? Your accounting team is likely spending more time ensuring the taxman’s boxes are thoroughly checked than they are strategising on how to grow your profit. This continued shift in focus might mean missed opportunities, unexplored tax benefits, and a lack of attention to the bigger financial picture. The ATO’s interests should be few and far between in your business activities, yet they often take centre stage, pushing your own goals to the sidelines.

Who’s Really Advocating for You?

It’s easy to assume that your accountant is your advocate. After all, they manage your taxes, help you stay compliant, and are meant to keep your financial records in check. But the reality is more complex. Accountants are often overwhelmed with the sheer volume of compliance tasks, leaving them with little time or energy to focus on the strategic aspects of your business.

Business owners expect that their tax accountant will be letting them know, at regular intervals, what they can do to improve. But very few accountants actually see that as part of their role. The exponentially increasing pressure from the ATO distracts them from what should be their primary focus (their business-owning clients) BEFORE attending to the intricacies of tax reporting.

Your needs are important, and your questions demand answers. I would argue that the actions of businesses just like yours are the very engine room of a prosperous economy. Taxation and regulation should act as a counterbalance to doing business, not an outright barrier.

If your accountant is preoccupied with compliance, ask yourself:

🤔 Who’s there to help you understand new tax thresholds as your business grows?

🤔 As you cross into higher revenue brackets, do you know how this impacts your tax obligations, like payroll tax or GST?

🤔 Who’s guiding you in setting realistic financial KPIs that align with your long-term goals?

🤔 Who’s helping you figure out if you’re charging enough for your services, not just to cover costs but to truly profit and grow?

If the answer is “no one,” you’re not alone—but you’re also not in a good spot. Your accountant may be great at keeping you compliant, but that doesn’t necessarily translate to helping you thrive.

The Hidden Risks of Neglect: Ignorance Isn’t Bliss

You don’t know what you don’t know. This saying rings especially true when it comes to your financials. Many business owners discover too late that their financial records have been handled with a bare minimum attitude. At best, this results in inaccurate data that leads to poor decision-making. At worst, your team could be stealing from you and hiding it in your loan account.

Consider the concept of Hanlon’s Razor, which suggests, “Never attribute to malice that which is adequately explained by neglect, ignorance or incompetence.” It’s a reminder that errors often arise from ignorance or neglect rather than intentional wrongdoing. However, in the world of business, the consequences of such errors can be devastating, regardless of the intent behind them.

Imagine finding out that due to inaccurate bookkeeping, you’ve been undercharging clients for years, missing out on significant revenue. Or worse, you’re audited by the ATO and discover the actions of your team don’t hold up under scrutiny, leading to penalties. These scenarios aren’t just theoretical—they happen more often than you’d think, especially in high-growth businesses where their owners don’t know how to ‘check the work’ of their accounting team.

Unfortunately, I’ve seen too many cases where neglect or outright self-serving behaviour has led to disaster. Disengaged business owners are paying the price. The truth is, if you’re not actively involved in your financials, no one else may be looking out for you. Even the most well-intentioned accountant can miss critical details and deadlines if their focus is divided between compliance and the countless other tasks on their plate.

It is essential to communicate clearly with your accounting professionals. Although they are your ‘agent’ with the ATO, ultimately YOU are responsible for record keeping, paying liabilities and lodgements.

The Solution: A Financial Advocate in Your Corner

More than ever in business today, you need someone who has your back—someone who’s focused on your vision, your goals, and your profitability. This doesn’t necessarily mean hiring a full-time CFO or adding another part-time role to your team. It could be as simple as engaging a mentor who regularly checks in to ensure everything is on track.

This is where I come in. As a financial mentor, I’m here for more than understanding compliance; I’m here to help you make better business decisions by empowering you with the knowledge and tools to understand your financial story. My role is to ensure that your business serves you—not just the ATO or your accountant’s objectives. AND that you don’t inadvertently overlook your responsibilities.

By working together, we can:

• Identify and set financial KPIs that align with your business goals.
• Develop a pricing strategy that ensures profitability while remaining competitive.
• Regularly review your financial records to catch any inaccuracies or opportunities that may have been overlooked.
• Navigate new tax thresholds and obligations as your business grows, so you’re never caught off guard.

You deserve to have someone in your corner who is as invested in your success as you are. Whether it’s through regular mentoring sessions, a one-off strategy session, or ongoing business guidance, I’m here to ensure that your business not only survives but thrives.

Your financial health is the backbone of your business. Don’t leave it in the hands of those who may not have the time or the inclination to look out for your best interests. You need a financial advocate—someone who sees the bigger picture and ensures that every decision made is in line with your goals.

Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/