In an article for the website SMSF Adviser, Miranda Brownlee talks about the growing number of mergers between SMSF accounting firms. At least partially, the declining numbers of service providers can be put down to this trend.
Big firms acquiring smaller firms
Presently, we are witnessing a lot of bigger firms acquiring small ones and ending their existence, as we know it. What it does is it helps the bigger firms to create an economy of scale.
From compliance to serving SMSFs
Accounting firms haven’t served a large number of SMSF trustees because they have inclined themselves more towards compliance. This, however, is slowly changing as the firms are waking up to the great possibilities in the unregulated SMSF sector. Of course, a complete shift will only occur when the firms can increase their overall fee base to match the SMSF fee base. With a low growth rate, this does not seem too feasible a target to attain.
You can read the original article here.
Mergers of SMSF accounting firms is a clear step in the direction of making oneself more capable to soak up the avalanche of SMSF trustees. SMSFs may be increasing arithmetically but give a perception of geometric expansion and the accounting firms are just budgeting for the kind of work that soon may be on the table.
Customised service will be the order of the day
Even at the very least, the mergers will ensure that clients get customised service; and that again on a much more sophisticated and streamlined level than is possible right now. Imagine what the customer may get when a tax advice services and SMSF expert like Joyce Dickson merges with business accounting and SMSF firm, Bolin Accountants. The picture may not be too hard for you to imagine.
