In today’s world of rising costs and overwhelming options, it’s understandable that business owners and individuals alike are looking for ways to reduce their expenses – including professional services like accounting. One trend I’ve noticed, however, is deeply concerning: a growing number of people are choosing accounting firms based solely on the cheapest hourly rate.
Let’s be clear – choosing the cheapest accountant rarely leads to the best result. In fact, it’s often a costly trap.
Here’s why.
1. Low Rates Don’t Mean Lower Fees
A $150/hour accountant might sound like a bargain next to a $242/hour expert. But what if the lower-cost accountant takes twice as long to complete the work – and still doesn’t deliver the quality or insight you need?
Average firms often lack the systems, efficiency, and experience required to work quickly and accurately. That means you end up paying more over time – for less value.
A recent prospect initially mentioned that we were too expensive…until we illustrated that the lack of advice over the past two years had cost her approximately $225,000 in lost equity accumulation and tax strategy implementation (negative gearing, structuring etc.).
We then went further into how exactly she could implement our guidance in the next 12 months, and suddenly there was a brightness of future and a significantly more powerful strategy to double the impact and make up for lost time.
2. Missed Opportunities Cost Thousands
What’s even more concerning is what these lower-cost providers miss. Many are compliance-focused and do the bare minimum: tick the boxes, lodge the forms, move on. After all, this is what their tertiary and further education also trains them to focus on.
But in doing so, they miss powerful opportunities to improve your business profits, structure your affairs more strategically, or legally reduce your tax burden. Unfortunately, real-life experience and meaningful professional development is how you learn these strategies.
That’s where the real money is lost – not in the hourly rate, but in what you never knew you were missing.
I’ve heard countless stories from wealthy people who own multiple properties but who haven’t even received the basic advice about tailored structuring based on their portfolio size, type, income and circumstances – that could save them thousands! Furthermore, they haven’t reviewed their portfolio performance to determine if it’s time to adjust it to higher performing assets. These simple actions are costing people hundreds of thousands, maybe even millions of dollars.
3. What Makes a Firm Truly Valuable
At Strategiq Advisory, we are relentless about outcomes. We don’t just “do the books” – we actively strategise to grow our clients’ wealth and protect their future.
Here’s how we do it:
- Our business and wealth integrated advisory focus makes your business more profitable, which enhances your wealth and property accumulation strategy, simultaneously with reducing your taxes. This integrated approach and model is unique to our firm and the market.
- Being a specialist in property means we have highly experienced and qualified property experts in house helping you to create high growth property portfolios, whilst reducing taxes. We are aligned with the best strategic partners in Australia (buyers’ agents, real estate agents, brokers and lawyers).
- Weekly team training on everything from tax law, people and power skills, and financial strategic advice.
- Dedicated internal systems and checks to ensure speed and accuracy.
- Cross-disciplinary knowledge in accounting, financial strategy, property, and wealth.
- Ongoing benchmarking of client results to measure real growth.
And how do we know we’re delivering better outcomes? Because we’re constantly cleaning up the mess left by outdated or slow firms. We see the damage other accountants cause – and we see the transformation in the financial health of clients who take our advice and stick with it.
4. Beware of Outdated Advice
Some of the advice still being given by average accountants today is, frankly, damaging. We hear it firsthand in our other programs and community sessions (e.g. reduce your builder’s margin so you can make more money at the end of your development project – sound familiar?). Advice that’s 10 years out of date. Advice that ignores current structures or legislation. Advice that doesn’t align with wealth-building strategies at all.
And often, the advice given by other firms who typically aren’t qualified advisers, provide no consideration regarding the most suitable, macro level outcome of the family group.
Recently, a new client came to us after being advised to setup multiple trusts, companies and an SMSF because the accounting firm wanted to create perceived value. However, it created unnecessary admin and setup fees to the family, as they didn’t require a convoluted structure, and weren’t even in a position to be able to use the structure for a tax advantage or to be able to buy more property.
We also recently onboarded a client who had been told to set up a structure that no longer complies with ATO guidance. The risk to their business was enormous – and avoidable.
And sadly, the people taking that advice are paying for it – now and in the future.
Final Thoughts
If you’re choosing your accountant based solely on price, you’re asking the wrong question. Ask these bold questions instead:
- What results can you help me achieve? And in dollars!
- What’s the long-term value I’ll gain from your services?
- How do you help your clients build wealth?
- What systems ensure your work is fast and accurate?
- How do you keep up to date? And mitigate tax strategically, and legally.
Because it’s not about what you pay per hour. It’s about what you get for every dollar.