Accounting & Bookkeeping practices are in demand

It has been a busy year in the Accounting & Bookkeeping practice broking market with high demand from interested purchasers still the norm. For practices in metropolitan & regional Australia it remains a seller's market, this demand presents excellent opportunities for potential Vendors.

The current areas of high demand for Accounting & Bookkeeping practices include:

• Canberra
• Sydney
• Adelaide
• Perth
• Rockhampton & Mackay
• South East Queensland
• Melbourne

Any practice in these regions with fees of $1M plus are attracting high demand from our registered purchasers.

There is also constant and ongoing demand for practices in all regional and capital cities generating fees from $500K plus.

Current practices for Sale include:
Rural practice South East Queensland $1.7M
Gold Coast $2M Audit & Tax practice
Cairns $760K
Melbourne Inner South East $950K 
Shepparton $790K
Warwick $600K

See all practices for sale.

Recent Sales achieved include:
Sunshine Coast $3M practice
Brisbane Inner North - $1.2M tuck-in 
Canberra $1.25M Bookkeeping practice - SOLD OFF MARKET
Victoria - North East $700K
Canberra $975K Tax practice
Gold Coast $1.55M - SOLD OFF MARKET

Off market sales:
We are in regular and ongoing discussions with Vendors in both metropolitan and regional Australia and with the current high demand a high percentage of practices don’t get to market as we already have interested purchasers registered with us acquiring them quickly.

If you are an interested purchaser and in acquisition mode, Contact Us to register your interest, simply advise us of your preferences (which includes fee size, location, staffing etc.). If we haven’t got it listed for sale, we may already be in discussions with a Vendor whose practice meets your requirements.

Click here to view all recent sales including those that were sold Off Market

If you have any questions on the current market conditions, This email address is being protected from spambots. You need JavaScript enabled to view it. for a confidential discussion or book a Zoom or telephone call meeting with us.
 

 
Upcoming Events
We are proud sponsors & exhibitors at the upcoming IPA Conferences around Australia and are attending the following events:
South Australia, Barossa Valley - 24 & 25 March
Sydney, Coogee Beach – 31 March – 01 April
Queensland, Sunshine Coast – 21-22 April
Victoria, Marysville – 28-29 April


 
If you are attending any of these events, come and say Hi. If you would like a confidential one-on-one discussion regarding the sale of your practice, contact us in advance and we can arrange a suitable time to meet.
 

Selling your practice comes with loads of questions: what price should I expect? What about my staff? How do I know my clients will be looked after? What if I own my premises?

Market Update

 
It is a sellers’ market with strong inquiry from purchasers Australia wide in acquisition mode.
 
We have registered purchasers on our database interested in acquiring practices with fees ranging from $350K to $5M. These include firms looking for a branch, regional or capital city office and individuals looking for a lifestyle change. 

Click here to read a recent article published in the Australian Financial Review where we discussed current industry trends.
 
Vendors
If you are considering selling, take advantage of this market and This email address is being protected from spambots. You need JavaScript enabled to view it. for a confidential discussion on the sale of your practice. With over 40 years experience in the practice broking market Australia-wide, we take the time to discuss the sale process with you and answer any questions you may have.
 
We handle the sale process from initial contact through to settlement allowing you to continue to focus on your core business of looking after your practice and clients. Our aim is to find a purchaser that is the right fit for you, your clients, and your staff.
 
Our listing authority is a non-exclusive agreement and we charge no upfront or marketing fees. Our professional fees are payable only upon completion of the sale of your practice.
 
Practices for Sale
Practice Sales have been very strong to start 2022, our current sale listings include:
 
Sydney $885K – Quality inner suburban practice with solid business clients and growth potential

Gold Coast $1.8M – Long established practice with practitioner looking to retire

Adelaide $415K - Well established accounting practice in the Northern suburbs with a strong spread of clients

Ballarat $1.2M – Great opportunity to have a branch office in Ballarat.

Canberra region $2.7M – With 11,000 small clients this practice should suit a Financial Planning business

Northern Territory $330K – Quality practice with a good spread of solid business clients.

Click here to view all Practices we have listed for Sale
 
Purchasers
We are regularly in ongoing discussions with Vendors in both metropolitan and regional Australia about the sale of their practice. In a number of cases these practices don’t get to market as we may already have interested purchasers registered with us. If you are in acquisition mode, Contact Us to register your interest, this should include your preferences of fee size, location etc. If we haven’t got it listed for sale, we may already be in discussions with a Vendor whose practice meets your requirements.

Click here to view recent sales
 
Upcoming Events
We are proud sponsors & exhibitors at the upcoming IPA Conferences around Australia and are attending the following events:
South Australia, Barossa Valley - 24 & 25 March
Sydney, Coogee Beach – 31 March – 01 April
Queensland, Sunshine Coast – 21-22 April
Victoria, Marysville – 28-29 April


 
If you are attending any of these events, come and say Hi. If you would like a confidential one-on-one discussion regarding the sale of your practice, contact us in advance and we can arrange a suitable time to meet.
 

As featured in the Australian Financial Review – 31 July - 1 August 

By Louis White (Journalist) – in conjunction with Vivienne Quinn & Chris Clifford (Directors of Quinn & Associates)

The pandemic has wreaked havoc across the globe with many industries but surprisingly the appetite to buy and sell accounting practices has not diminished, in fact it has flourished.

The appeal of buying an accounting practice, regardless of size, has strengthened in the past 18 months with no signs of that interest declining.

Equally, those wanting to sell are in a strong position due to the abundance of purchasers and limited number of practices on the market at any one time.

“In the financial year to June 30, 2021, we brokered sales up to $18 million in fees Australia wide,” Chris Clifford director of accounting practice brokers Quinn & Associates, says.

“This figure would have been closer to $30 million had the accounting industry not been so inundated with extra workload issues relating to the COVID pandemic. There has been delays from the continual border closures and the banks taking significantly longer to process the loans and documentation.

“There is a very high demand Australia wide for practices particularly those turning over anywhere from $800,000 up to $5 million in revenue.”

An IBISWorld report entitled, ‘Accounting Services in Australia’ published in April 2021, reveals that accounting services realised $20.9 billion in revenue between 2016 and 2021, resulting in $3.7 billion in profit, which is a 17.9 per cent profit margin.

There were more than 34,000 businesses in Australia providing accounting services.

Quinn & Associates was established by Vivienne Quinn approximately 40 years ago as an accounting recruitment business.

“Clients were approaching us to find replacements for retiring partners,” she says.

“We were constantly on the search for new partners and then this expanded into referrals for people who wanted to sell their practices.

“Since then, we have become specialists in the practice broking industry where our extensive years’ of experience allows us to understand and gauge the state of the market and advise our clients accordingly.”

The ‘Accounting Services in Australia’ April 2021 report divulges that the big four accounting firms – KPMG, Ernst & Young, Deloitte and PwC – glean approximately 25% of industry revenue, leaving the second tier, SMEs and smaller independent accounting firms dividing the rest.

The report states: ‘Rising demand for industry-specific advisory services has supported revenue over the period, with many operators expanding their advisory services. Industry operators are increasingly incorporating technology, such as data analytics and cloud-based accounting, which has expanded value-added services. These value-added services have larger profit margins than traditional tax and audit processing, encouraging firms to diversify.’

“Accounting practices are in demand whether they be audit practices, tax and business services practices,” Quinn says.

“We often have accounting firms reach out to us regarding a potential sale but due to their workload it can be six to 12 months before they are ready to put the practice on the market. Once a practice is listed with us, we will have it at contract stage within two months - if it is in a high demand location.

“There are many reasons people want to either buy or sell a practice. With regards to buying, a firm may want more fees to merge into their existing practice and location or want to have a branch office in another area or even interstate.

“Practitioners wishing to retire want assurance that their practice is sold to the right purchaser who is a good fit with the clients and staff.”

A highly saleable accounting business has a quality base of clients, knowledgeable staff, strong internal systems ensuring work in progress and debtors are well controlled.

“As specialist accounting practice brokers, we assist our clients with the best advice on how to get their practice sale ready,” Chris Clifford says. “Purchasers are typically focussed on securing the future recurring fees of a practice.

“As a vendor it is important to consider factors such as the size and types of clients, the profitability of the practice, the location and size of the practice, risk factors, billing, work in progress, collection procedures, the deal structure and transition timing that is necessary.”

As experienced practice brokers, Quinn & Associates know and understand the state of the market and inform vendors and purchasers of what prices have been paid for similar sized practices in the CBD, suburban and regional areas.

“We have a ready and extensive database of purchasers’, and we know who to approach as a potential purchaser that is the right fit for your practice,” Quinn says.

“We know which purchasers are in the market at any one time and how motivated they are to buy.”

Not using a specialist broker can result in a practitioner being pressured into accepting a lower price than the market rate, as they do not have the knowledge of what other practices of a similar size and quality are selling for.

“We handle all stages of the sale from practice preparation through to successful settlement thereby allowing the client to focus on running their practice with minimal distraction,” Chris Clifford says.

Quinn & Associates have developed a sound reputation in the practice broking industry and their strength of expertise in the marketplace is widely known.

“We are confident in our ability to broker the sale of any accounting practice,” Quinn says. “We don’t ask for a listing fee, simply a commission payable upon settlement.”

by Rob Pillans | June 16, 2022 

As an accounting firm coach, mentor and consultant I consume content from Australia and around the world to keep up with developments affecting the profession. I was listening to a podcast from the USA recently and on it the host was interviewing the “Chief Metaverse Officer” for a Top 100 American accounting firm called Prager Metis.

So what is the Metaverse and why might it be of interest to accounting firms?

It seems to me that “the Metaverse” is a term used to describe any number of virtual reality spaces where users can interact with a computer generated environment and other users. Many sources online including Wikipedia quote the source of the term as being the 1992 science fiction novel Snow Crash by Neal Stephenson.

You will probably be aware that Facebook changed its name in October 2021 to Meta and reckons the combination of real and online worlds will be a big deal. Popular games such as Fortnite and Roblox are considered part of the Metaverse.

Confused? Gartner has a really good explanation here: What Is a Metaverse? (gartner.com)

Here are some examples of things Gartner says take place in a Metaverse:

• Purchasing outfits and accessories for online avatars
• Buying digital land and constructing virtual homes
• Participating in a virtual social experience
• Shopping in virtual malls via immersive commerce
• Using virtual classrooms to experience immersive learning
• Buying digital art, collectibles and assets (NFTs)
• Interacting with digital humans for onboarding employees, customer service, sales and other business interactions

Gartner further says: “It is expected that a Metaverse will provide persistent, decentralized, collaborative and interoperable opportunities and business models that will enable organizations to extend digital business.”

It’s pretty early days but things are moving fast as they tend to do in the world of digital technology and the partners of Prager Metis have decided that as an accounting firm they need to understand this new world. In essence they see it as a responsibility to be able to advise clients and also as an opportunity to enhance their own business.

In addition to having a CMO, Prager Metis has set up an office in the virtual world called Decentraland. In other words, they’ve purchased some virtual real estate. They see this as part of building their understanding of the Metaverse and as a result being much more able to assist clients. Decentraland is described by itself as follows. “Decentraland is a decentralized virtual reality platform powered by the Ethereum blockchain. Within the Decentraland platform, users can create, experience, and monetize their content and applications.”

Still with me?! Perhaps this quote from quytech.com will help:

“Imagine studying, working, interacting, attending concerts, earning money, and playing games in an online realm that is both an extension and a fusion of the real world.

Besides, meetings with clients, digital entertainment, work training, and even online study are all expected to be available online in the future, thanks to the Metaverse. This is why so many businesses are investing in the Metaverse: the network’s ability to change the world is undeniable.”

See here for some further comments from deeds.com on buying virtual real estate.

The currencies of the Metaverse and the many virtual worlds already in existence are crypto currencies. If, as an accountant, you don’t yet understand crypto and feel confident in helping clients with the accounting and tax implications of treading it, then you are not alone. I have a couple of clients who have strong niches in this area and one in particular says he gets a regular flow of new clients as a result of other accountants being unable to help.

You might decide crypto is not for you and to stay away from it which is your choice. I’ve seen reports that perhaps 15% to 20% of Australians own crypto and that this could be as high as 30% for Generation Z Australians. Cryptocurrency in Australia – statistics & facts | Statista That’s a decent sized market to be served by accountants if you have a business model that allows you to serve them profitably.

If you’d like to listen to the podcast or read a transcript of the discussion that caught my attention you can find it here: Why the Metaverse matters to you | Accounting Today

Published with the permission of Planet Consulting 
www.planetconsulting.com.au

by Rob Pillans | June 16, 2022 

The Accounting Business Expo was held in Sydney at the International Convention Centre on 28 and 29 April. For those of you who didn’t make it let me give you a taste of what you missed. This was the first ABE since 2019 and it is effectively a combination of suppliers to the accounting industry (dominated by software vendors) showing their wares and short (20 minute) education sessions running concurrently in multiple mini theatres.

For me it was a great opportunity to catch up face to face with people in our profession that I’ve not seen for some time. And of course, in my role as an accounting firm coach, mentor and consultant, to keep uptodate with what’s going on.

There were a few pretty obvious themes coming through in both exhibitors and education sessions:

• Crypto currencies
• Automation
• People challenges

I made reference to cryptocurrencies in another article on the Metaverse which you can read here. One observation worth making is that a large number of firms report getting queries about crypto currency. Whether you believe it is a good thing or not, it seems to me it is something that accountants now need to have at least a basic understanding of so they can have conversations with clients.

I was a panel with Shaye Thyer (Intuit), Olwyn Connolly (Inflo) and Tyler Caskey (The Bean Counters) exploring the use of Robotic Process Automation, Machine Learning and Artificial Intelligence. In 20 minutes we really couldn’t cover much ground, but all agreed that automation is and will have a significant impact on how accounting firms operate and bring opportunities to be more efficient. We also agreed it won’t solve all your problems!

I also did a fireside chat with Daniel West of MYOB who asked me some questions about getting the most from existing clients rather than always chasing new clients. Many firms I speak with readily acknowledge they have significant unmet needs in their client base. Many also note their challenge in meeting those needs due to a lack of capacity. I dare say some of that is due to the challenges in finding and keeping people but also in some firms I’m convinced there remain significant inefficiencies chewing up valuable capacity. If you haven’t had a critical look at how you manage workflow and complete key tasks in your firm for more than say 18 months, then I suggest you schedule to do that before you get into FY22 work in a big way.

There were a number of sessions on the challenges of finding and keeping good people and also on the gender imbalance at senior levels in our profession. Both current and important topics.

I bumped into a recruiter called Michael Edelstein who recorded this chat with me:

Short Interview with Rob Pillans – Accounting Business Expo 2022

This was a free event and as a result a large number of the education sessions were run by businesses who had paid to have a stand or to speak. The quality was variable with some just thinly veiled sales pitches. That said, I do think if you are in the city where this event is held it is worth the effort to attend. Most accountants I spoke with said there was at least one or two things they saw or experienced that were enough to make it worthwhile. I understand it will be in Melbourne on 14 and 15 March 2023. See more here.

Published with the permission of Planet Consulting 
www.planetconsulting.com.au

by Rob Pillans | June 16, 2022 

I daresay that to many people most accounting firms are perceived as being very similar. So let me start by saying that positioning is important because it gives you the ability to cut through and separate your firm from the bunch. It makes it easier for you to win and keep the clients you want. It also makes it easier for you to attract and retain the right team members for your firm. So what is it?

Wikipedia has a good definition as follows:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors…

Primarily, positioning is about “the place a brand occupies in the mind of its target audience”

In order to position products or brands, companies may emphasize the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through the marketing mix.

I’ve added the emphasis to highlight the key part of the definition. I’ve spoken at length on the importance of identifying your ideal client (target audience) so that your marketing and business development efforts can be targeted for maximum effect. See a previous article here for more detail.

You will see that the definition of positioning talks about emphasizing the distinguishing features through “the marketing mix” The marketing mix is usually defined as Product, Place, Price and Promotion. Let me unpack each of these a little.

Product

This is your product or service that is going to satisfy client needs or wants. This includes the features and quality, product range and product mix and branding. It could also include any guarantees or warranties offered. For example some firms are very clear that they are business focused firms and offer the products that businesses need, as opposed to others that may focus on individuals. And Some firms might have a money back guarantee (although this is pretty rare.) Some firms have a strong niche, or specialisation, which is a key part of their positioning.

Price

This is what the client pays. I think of it as pricing and packaging – for example does the client pay a proportion up front and the balance on completion. Or perhaps it is 12 equal monthly instalments. This is also about payment terms – when an invoice issued what is the expectation of timing and what payment methods are accepted. Some firms are still a bit reluctant to accept credit card payments for example. Historically I reckon accountants have been inclined to under value what they do and therefore not price high enough. If that’s you, now is a great time to be looking to correct that.

Place

Generically this is about how customers get access to the products. For accounting firms this includes the location of offices and what services might be delivered online and what are delivered face to face, or perhaps a combination of these. Although technology now supports firms to have clients pretty much anywhere, I still see that for a majority of firms a majority of their clients will be in their local area. Do clients visit you in your office or do you visit them? These considerations are all a part of this element of positioning.

Promotion

This is about your marketing communication including the channels you use and message being communicated. It is about how you reach your target audience. For accounting firms some elements of promotion will include website and social media activity, traditional media, public relations, pro bono work, events, networking and making it easy for existing clients to refer new clients.

It is the combination of these four elements, and the choices you make about each, that builds your positioning.

Sometimes you might be able to distill your positioning down to a simple word of phrase. For example I reckon for Qantas, historically the positioning has been about a single word “SAFETY”. Watch the movie Rain Man to understand more about this! When Qantas wanted to be able to compete with Virgin it knew it needed a different brand with a different positioning and so Jetstar was born with a positioning of “CHEAP”. Luxury fashion brands are fantastic at positioning themselves as exclusive and there are a few who tightly control entry into their retails stores as part of managing this. (Think queues you might have seen outside a few of these stores in your local CBD.)

Remember that every interaction a client, prospect or other third party has with your firm is shaping their perception of your firm. Knowing that you want to be very intentional in how those interactions occur and be in control as much as possible of the messages being delivered through those interactions.

Also remember that decision about positioning are high level strategic decisions that should be made before you build or update a website or spend time and effort on marketing and business development. A good question to ask is “what is the positioning I want to have and what do I need to do to achieve that?”

If you would like to chat more about the positioning of your firm I’ll be pleased to hear from you. Meantime you might like to read Positioning: The Battle for Your Mind by Al Ries and Jack Trout if you want to dig into this more.

Published with the permission of Planet Consulting 
www.planetconsulting.com.au

by Rob Pillans | Mar 23, 2022 

I’ve recently had a couple of hotel experiences which have reinforced the importance of being able to put yourself in the shoes of your clients and understand what they are thinking, feeling and doing at each stage of their journey with you.

Which hotel experience is closest to what happens in your firm when you bring a new client on or are doing regular work for a client?

There are many, many accounting firms in Australia and arguably most can service clients well from a technical standpoint. The client experience however is an opportunity to differentiate yourself from others and to have your clients feeling like they’ve had the hotel 2 experience.

My advice – map out what the client journey is step by step with your firm and put yourself in the shoes of the client. What are you thinking, feeling and doing at each stage? How can you make it a better experience?

Published with the permission of Planet Consulting 
www.planetconsulting.com.au

by Rob Pillans | Mar 23, 2022 

At this time of year in Australia accountants are turning their mind to tax deadlines. First 31 March and then most importantly for most, 15 May. I trust you are on top of what you wanted to get done before 15 May. The pandemic has added to the workload and I know many firms have found this challenging. Some are telling me they are behind where they’d like to be, although others are on top of things.

I understand there is some scope for certain lodgments to be by 6 June and if you are not across that you can see the ATO guidance here: Individuals and trusts | Australian Taxation Office (ato.gov.au). More broadly you can update your knowledge on the ATO’s lodgment framework here: Lodgment program framework | Australian Taxation Office (ato.gov.au)

This is not formal advice but rather a list of some things I hear firms talking about dealing with:

• Review tax lodgement lists to make sure you don’t have anyone listed who should not be – no point in getting pinged by the ATO for people who are no longer your clients
• Chase clients who have been slow to provide information required for compliance work completion
• Review extension arrangements for clients
• Write off bad debts
• Look at management fees and service agreements
• Trust distribution resolutions
• Directors fees and bonuses
• Division 7A loans and agreements
• Superannuation contributions
• The usual things you may want to claim a deduction for this year rather than next
• Asset purchases and immediate write off in FY22 tax year
• Any other tax planning matters – for most firms April through June is the time for planning meetings with clients

Two topics that are causing angst at present are:

• Trust distributions
• Professional profits
• If you are not across what the ATO is proposing invest a bit of time to get up to speed.

I’m also hearing that the ATO is being more assertive in respect of payment plans and debt collection so it might pay to be on the front foot with those matters too.

This list is not definitive but has perhaps prompted you to think of a few more things.

Some firms are so focused on helping their clients they forget to do these for themselves. Don’t let that be you!

One last tip. If you have not done so already consider a meeting of your key people to quickly go through a list of things needed to be done by 15 May so nothing is missed. Having worked in five firms myself and been through a lot of 15 Mays, I know how easy it can be to miss something. A short check in now might stop regrets because something was forgotten.

Published with the permission of Planet Consulting 
www.planetconsulting.com.au

by Rob Pillans | Mar 23, 2022 

I grew up in Canberra, have family there and do some work there. As a result, I’m a pretty frequent user of Canberra airport. Typically I come in and out of the airport once a month and every time find it a frustrating experience. Why? A lack of signage to guide you. It’s the worst airport I’ve experienced when it comes to signage.

At every other airport when you come out of the gate you don’t have to look too hard to see a sign guiding you to the exit. Not in Canberra. Must be classified information! I still struggle to remember where the exit is and see many other travellers experiencing what I experience – they feel a bit lost, or even stressed because they don’t know where to go.

Is your firm like Canberra airport? Nothing that shows your team where the firm is going?

One of my favourite references on leadership is Extraordinary Leadership in Australia and New Zealand by James Kouzes, Barry Posner and Michael Bunting. Here is a quote from that which I think summarises well the value of providing clear direction for your team members:

“ ..the two most important things a leader can do to drive engagement are ‘communicate and reinforce with employees the organisation’s vision and values (and ensure that day-to-day managerial behaviours, actions and decisions are consistent with the core organisational values’).

Our research documents that effective leadership is not simply about the leader having a vision – it’s about inspiring a shared vision, one that all team members clearly understand, buy into and feel a part of. No matter how accurate and compelling a leader’s vision is, if there isn’t consensus and buy-in by the people doing the work, that vision will not be realised.

People want, first of all, reliable information on where the company (program, project, product or team) is going. And they want to understand how what they are doing fits into the big picture.”

Have you inspired a shared vision with your team?

Have you consistently communicated where the firm is heading and how each team members fits into that?

If not, now would be a great time to start. As we head into the final quarter of FY22 take some time to do some thinking and planning for your firm. Update your vision and share it with the team and even better, get them involved in building it.

Published with the permission of Planet Consulting 
www.planetconsulting.com.au