Technology is also playing a big role in the future of accounting and represents both opportunity and threat. The ATO’s use of technology under the new Reinventing the ATO program may be viewed as a game changer.
For instance, the increased use of automatic lodgement through MyTax signifi es another way that traditional compliance work is diminishing.
70 per cent of the public uses the services of a tax agent. However, there is no doubt the ATO will continue to promote its ease of lodgement and prefilled tax return services, which can only lead to reduced demand for existing tax agents. This is one of many reasons for tax agents who undertake mostly compliance work for clients to reconsider their business model.
Statistically, individuals who use the services of a tax agent receive a higher refund and consumers get safe-harbour protection from penalties by going through a tax agent. The IPA will continue to promote the use of a registered tax agent in the best interests of the public.
However, future legislation and the reduction and/or removal of workplace deductions may detract from the use of tax agents in the future.
We need to be mindful of this impact, so it is extremely timely to consider what your future business will look like, including the range of services you choose to provide and the types of clients you choose to target. On the brighter side, there will be increased public demand for specialist advice. As trusted advisers, IPA members are still in the best position to optimise this demand, not just in the financial services environment but also from a more holistic business advisory perspective.
But, be aware: the clock is ticking.
Wendy Leegel FIPA
