Previously there had been a “continental shift” between the two professions as they gradually came together, but in recent years there has been a rapid convergence, Mr Fenning said.
Strategic work related to self-managed superannuation funds (SMSFs) is the most obvious example of common ground between the two professions, he said, but there is also an increasing convergence between the two professions on the more high-net-wealth end of the spectrum.
Mr Fenning separated ‘backwards-looking’ accounting services (such as tax returns for trusts, companies or high-net-wealth individuals, as well as auditing services) from ‘forward-looking’ services like strategic advice.
“The better accountants go on to advise small business clients or high-net-wealth clients [about what to do next],” he said.
After doing accounting work for a small-to-medium-sized business (SME), there may be an opportunity to provide advice about whether or not to reinvest in the company, take on more debt, expand or contract, he said.
The Tax Agent Services Act for planners and the limited licensing regime for accountants are helping to drive the convergence between accounting and financial planning, said Mr Fenning.
“We feel like we need to have the financial services licence and the accountant’s licence, but fundamentally we need to change both sides of it: how do we deal with this ‘look forward’ advice to clients?” he said.
Traditionally, SFG has worked with corporate executives and people who hold senior government positions, but through its acquisitions of accounting firms the company is moving more towards the SME or business-owner market, Mr Fenning explained.
The company is putting cash aside for any potential ‘tuck-in’ acquisitions, with Lachlan Partners acquired earlier this year.
SFG is continuing to take a ‘wait and see’ approach to the large accounting firm WHK Group, which Mr Fenning says has been a potential target since 2009.
“We’re just really standing back until we have a look at where things sit after this reporting period. Then we’ll decide whether we want to have another look at it or whether we want to stand back,” he said.
