Accountants & Financial Advisers: Achieving a common goal through digital advice

Ask any accountant or financial advice professional what gets them out of bed every day, and the answer will likely be, “Because I’m making a positive difference in my client’s lives.”

This common goal is getting harder to achieve as both industries struggle to find enough talent. The ABS forecast that Australia would require 338,362 accountants by 2026 – almost 10,000 extra a year*. Adviser numbers are also declining with less than 16,000 active advisers at the time of writing.

That’s a vast shortfall of the resources needed to serve:

• The approximately 9.1 million people who lodge a tax return through an accountant,
• The 14.2 million employed Australians who could benefit from financial advice throughout their careers, and,
• The households giving away or benefiting from the $2.8 billion wealth transfer.

The lack of new talent and increased compliance burdens have meant that both professions have struggled to find ways to meet existing needs, expand their offerings, and serve more clients. 

But I believe there is a convergence of factors and capabilities that make it possible for these two industries to collaborate more closely today, enabling growth now and into the future.

Evolved technology with a human touch

Compliant, personal digital advice is a reality thanks to advanced technology solutions that leverage powerful calculation engines, APIs and complex data analytics. moneyGPS is a turn-key digital advice proposition and platform for accountants and advisers that enables their non-advised clients to access affordable advice. Prices range from $90-180 AUD for single-topic Statements of Advice and include the opportunity to speak with a human if needed. 

Compliance risk reduced or removed

Until now, accountants could not provide advice without a license, and financial advice practices did not want to invest in the vast development costs of digital advice under their own AFSL. Digital advice provided through the moneyGPS platform can use the moneyGPS AFSL, removing risk for accountants and advice practices.

Digital advice is backed by the Government

When Federal Financial Services Minister Stephen Jones announced on 7th December 2023 that the Government would accept the majority of QAR recommendations, he referenced the use of digital advice for the industry to scale and offer helpful advice at a time and place that suits the client.

Beneficial commercial terms

Accounting firms and financial advice practices that subscribe to moneyGPS receive 80% revenue share from all financial services, with the remaining 20% going to GPS-supported charities. 100% of revenue is retained by the subscribing practice for incorporated internal advisory or external referral services and products.

Everyone wins

The benefits increase when accountants and financial advisers work together as close referral partners through a digital advice solution. 

Accountants can offer affordable advice without an AFSL while triaging comprehensive advice needs to their recommended financial adviser. 

Financial advice practices can serve non-advised clients and nurture those who don’t need comprehensive advice through the moneyGPS platform. They can triage tax or business accounting needs to their recommended accountant, and both parties can include other financial services referral partners on the platform.

By collaborating more closely, the accounting and financial advice industries can grow in strength and size. They can have a greater impact —making more of a difference to even more clients’ lives.

Book a 30-minute chat with CEO and Co-Founder George Haramis to ensure your practice isn’t left behind.