A new association is set to help small firms frustrated by regulations that prevent them from getting comprehensive financial advice from accountants.
The National Tax and Accountants Association is to launch a new financial planners’ association to, in its words, “aggressively take back ground” that tax agents and accountants have lost to large financial planning companies.
The association will allow tax agents and accountants to continue to provide advice to businesses on self-managed superannuation funds.
Under new government proposals, tax agents and accountants will be barred from advising clients on setting up their own super funds.
The NTAA, which represents more than 7,500 accountancy firms, says that restrictions on the advice made available is damaging to start-up businesses.
“A lot of small firms totally rely upon their accountant for advice, but accountants are putting their hands up and saying ‘I can’t do this under the law’,” Roger Cotton, spokesman for the new association told StartupSmart.
“Start-ups are looking for a one-stop shop. They want someone with a reputation that they know through family and friends who has skills in accountancy, banking and strategy.”
Cotton claims that the rules favour the financial planning industry over small accountancy firms, with advice often “tainted” by the planner’s attachment to a large financial institution.
“We don’t want to impact upon a small business’ right to expand its horizons and deliver a service to clients,” he says. “The law effectively limits them from expanding in the fastest growing sector in the financial services industry.”