Accountants put too much pressure on themselves when it comes to making investment decisions for their own finances, according to a Quantum Financial director.
Quantum’s Tim Mackay said the high level of numeracy in the accounting profession was different from investment expertise.
“While accountants are smart and highly trained in their area of expertise, this doesn’t automatically translate into understanding about finance,” Mackay said.
“Investing confuses and intimidates many people (including accountants) and, if you’re among them, don’t feel alone. Unless you don’t have a job, family, friends or hobbies, then recognise that finance is only ever going to be a part-time subject for you.”
However, Institute of Chartered Accountants of Australia head of financial advisory services Hugh Elvy said the key issue was whether accountants needed additional training in specialist areas.
“I don’t think the objective of [Mackay’s] article is to say accountants don’t know about investing, but rather to flag that there are some specialist areas and accountants are well-positioned to develop that expertise – but it’s an added specialist area that they can take on board,” Elvy said.
“The article is basically saying that when it comes giving advice on investment, there are extra areas that you need to get your head around to be seen to be an expert.”
He said it was often more difficult to work on matters in their own lives.
“I think it’s the case that in an area in which you spend a lot of time, perhaps you don’t spend enough time looking at your own situation when it comes to advice,” he said.
“What accountants do bring to the table is with their vast array of clients; they actually have a very wide breadth of experience and expertise.
“Dealing with various clients who have been through various investment processes, they would actually have a wide breadth of experience and expertise, but at the same time they need to be aware there are certain areas that require specialist knowledge.”
