How Baby Boomer Accountants Can Maximise Their Exit Payout

Which Employee Share Ownership Plan is right for your business? Watch our Free Webinar 

How Baby Boomer Accountants Can Maximise Their Exit Payout


How Baby Boomer Accountants Can Maximise Their Exit Payout

By , May 17, 2017

The baby boomer accountant is ready to embrace the change.

Baby boomer accountants who wish to retire in the next three years or so have an ideal opportunity to maximise their revenue and prepare for an exit strategy with more money in their pocket.

Traditionally, accountants over the years have grown with their clients. As their client businesses florished so did the accountants business.  However, the accountant has also developed other financial services businesses over the years and has received very little benefit or remuneration.

How so?

If a client decided to purchase a business or an investment property, the accountant would accommodate and send off the client’s financials and tax returns to the Finance Institution providing the loan to verify the lending details and business accounts. If the accountant’s client wanted financial advice, then often they would be referred to a suitable financial planner. Likewise with other business services. So the accountant has been indirectly helping all other business associated with his clients to grow without any benefit to themselves. As the accountant starts to look at winding down toward retirement so do his clients, they will need retirement advice and business succession advice, and again the accountant will have to pass this service to someone else.

How selfless! How altruistic! Well, maybe or is it bad business? Sadly, when the accountant decides to hand over the keys and wind down, his business is worth far less than those he has helped to build.

With the new legislation, the accountant can’t advise on anything concerning wealth creation or investments unless they have a license to do so. They must stick to their knitting. Tax!

As all products and services whether it is Finance, estate planning, investment advice, they all have tax implications. It makes complete sense that clients are now looking for a one-stop shop to deliver an array of financial services to and coordinate and integrate their Wealth Creation with Accounting.

As the client trusted adviser, the accountant is in an ideal position to provide this service.

But how do they?

Numerous surveys will confirm that ask any client what they think of getting a home loan through their accountant and their immediate reaction is Yes, Please! Same with Investment advice. Most Accountants would ideally like to deliver these services to their clients, but they don’t know how. They have limited time to upskill, and without this they legally can’t help their clients. They need someone who has the same values as they do to support and ensure the client will have the service they are used to. Add to the mix that the baby boomer Accountant is now looking to wind down. It all gets too hard.

Unfortunately, Accountants who can’t provide these services are losing clients to those who can.

The problem, of course, is when the baby boomer accountant comes to retire the losers are the very people he has worked for all his career. His clients.

What’s the solution?

The accountant is wise to put in a plan that:

  • Helps to delivery the necessary financial services to clients.
  • Grows the firm’s revenue.
  • Allows the accountant time to provide clients with services to maximise the value of his business.
  • Allows a smooth transition or wind downs to his exit.


Note: This article was originally published by BlueKite Capital.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.

Interested in retaining your key employees?
Get your free ESOP whitepaper.