From the trenches.

From the trenches.

Ladies and gentlemen, welcome to From That Chan shows Real Life in the accounting industry. My name is David Boyer from Change GPS. This is a special show. Joining me is Malcolm Stewart from MJS Business and Financial. It's been a long time since we've had another accountant on the show to interview. This show is still brought to you by BGL, Australia's number one corporate compliance and superannuation software, and the outsourced accountants taking care of all of your resourcing needs. Malcolm, we're at the Perth Roadshow.

Ladies and gentlemen, welcome to From That Chan shows Real Life in the accounting industry. My name is David Boyer from Change GPS. This is a special show. Joining me is Malcolm Stewart from MJS Business and Financial. It's been a long time since we've had another accountant on the show to interview. This show is still brought to you by BGL, Australia's number one corporate compliance and superannuation software, and the outsourced accountants taking care of all of your resourcing needs. Malcolm, we're at the Perth Roadshow.

Yes, it's a wonderful day, and Paul, I don't think you've been told yet, but anyway, um, lots of great tips, catching up with, uh, the app providers, getting new information, sorting out a few problems, so.

Yes, it's a wonderful day, and Paul, I don't think you've been told yet, but anyway, um, lots of great tips, catching up with, uh, the app providers, getting new information, sorting out a few problems, so.

I want to explain to listeners why you're here. We had breakfast today, change GPS put on a breakfast this morning before the roadshow, and you came up to me and said, what are you gonna get me on the show? And I said, oh, what are you doing in half an hour? Yes.

I want to explain to listeners why you're here. We had breakfast today, change GPS put on a breakfast this morning before the roadshow, and you came up to me and said, what are you gonna get me on the show? And I said, oh, what are you doing in half an hour? Yes.

I was only joking, but here we are, so, but, but I love, because you represent something that I've really enjoyed being on this roadshow, which is just going out and talking to real accountants, not just the accountants that exist on social media or exist online, and, and, and those people doing amazing things and, and we can learn a lot from them, but just regular accountants who are out in the burbs helping the mums and dads of Australia. Um, tell us a bit about your practice. Yes, um, we're a two partner firm in Subiaco in Perth, um, Eagles fans.

I was only joking, but here we are, so, but, but I love, because you represent something that I've really enjoyed being on this roadshow, which is just going out and talking to real accountants, not just the accountants that exist on social media or exist online, and, and, and those people doing amazing things and, and we can learn a lot from them, but just regular accountants who are out in the burbs helping the mums and dads of Australia. Um, tell us a bit about your practice. Yes, um, we're a two partner firm in Subiaco in Perth, um, Eagles fans.

No, my partner comes from New South Wales, so he's a Parramatta Eels fan, and I'm a Docker fan, so 25 years of suffering. Yeah, well, you know, I'm a Dogs fan, so it's worth it when you finally get there, trust me.

No, my partner comes from New South Wales, so he's a Parramatta Eels fan, and I'm a Docker fan, so 25 years of suffering. Yeah, well, you know, I'm a Dogs fan, so it's worth it when you finally get there, trust me.

Well, she went to the Dockers' first game in Melbourne at the MCG. Oh really? You Clive Waterhouse fanboy, or did you? Peter Mann would have dominated back then actually. And there was a fight in the crowd, and I'm looking around saying, who's, how's, there's no, there's 20 Docker supporters in the ground. Turns out it was two Richmond supporters beating the crap out of each other.

Well, she went to the Dockers' first game in Melbourne at the MCG. Oh really? You Clive Waterhouse fanboy, or did you? Peter Mann would have dominated back then actually. And there was a fight in the crowd, and I'm looking around saying, who's, how's, there's no, there's 20 Docker supporters in the ground. Turns out it was two Richmond supporters beating the crap out of each other.

God bless them. Well, they've done all right. That could be you soon. So anyway, your practice, two partners, two partners. We merged, oh, about 13 years ago. Um, mainly at the time, accounting, doing a little bit of financial planning. Um, but over the last couple of years, our financial planning division has grown quicker than the accounting, so.

God bless them. Well, they've done all right. That could be you soon. So anyway, your practice, two partners, two partners. We merged, oh, about 13 years ago. Um, mainly at the time, accounting, doing a little bit of financial planning. Um, but over the last couple of years, our financial planning division has grown quicker than the accounting, so.

Pretty soon we're gonna have to change our title from accountants that do financial planning to be financial planners that do accounting. Now this is, this is why we're chatting, because I can't remember the last time I heard an accountant say that financial planning is growing faster than accounting. There's been massive disruption, so what do you reckon's happened that's caused this to work out for you?

Pretty soon we're gonna have to change our title from accountants that do financial planning to be financial planners that do accounting. Now this is, this is why we're chatting, because I can't remember the last time I heard an accountant say that financial planning is growing faster than accounting. There's been massive disruption, so what do you reckon's happened that's caused this to work out for you?

Um, we're pretty lucky with the clients that we've got, um, a lot of high net wealth clients, and full credit to my partner Paul Johnson, he's written a book on share investing. And so a lot of what we do is around picking a portfolio of 15 stocks for clients, buying and holding, cause over the 25 years that I've been doing it, nothing makes more sense than just buying the good shares, holding them for the long term, and get your growth out of that.

Um, we're pretty lucky with the clients that we've got, um, a lot of high net wealth clients, and full credit to my partner Paul Johnson, he's written a book on share investing. And so a lot of what we do is around picking a portfolio of 15 stocks for clients, buying and holding, cause over the 25 years that I've been doing it, nothing makes more sense than just buying the good shares, holding them for the long term, and get your growth out of that.

And the clients have become educated that when it doesn't sound sexy or fancy at all, like I could have done this when I was 18. That's it, it is so simple, um.

And the clients have become educated that when it doesn't sound sexy or fancy at all, like I could have done this when I was 18. That's it, it is so simple, um.

So, even yesterday I was interviewing a couple of clients and they started with a geared share portfolio. They're just putting 100 $200 a month in for their daughters, and now they're both over $70,000 and they just can't believe how these simple things just work. Just putting it a little bit at a time, each month, just leave it, let it grow, not worry about it, and it, and it works.

So, even yesterday I was interviewing a couple of clients and they started with a geared share portfolio. They're just putting 100 $200 a month in for their daughters, and now they're both over $70,000 and they just can't believe how these simple things just work. Just putting it a little bit at a time, each month, just leave it, let it grow, not worry about it, and it, and it works.

But then you get a lot of people trying to do fancy stuff, fund managers and all that sort of stuff, and.

But then you get a lot of people trying to do fancy stuff, fund managers and all that sort of stuff, and.

Yeah, there's a place for that, but it, our point of difference is that we do it that way. The business model of financial planning is under a bit of stress at the moment. What's yours?

Yeah, there's a place for that, but it, our point of difference is that we do it that way. The business model of financial planning is under a bit of stress at the moment. What's yours?

Um, we've got the, my partner and I, we do the advising to clients and then the rest of it, we use a bit of outsourcing, um, for the power planning and that. So that means that we can see more clients and any issues around the getting the SOAs written can be done straight away. Have you always been fee for service or what happened when that cha what happened when the commission structure changed industry wise for you?

Um, we've got the, my partner and I, we do the advising to clients and then the rest of it, we use a bit of outsourcing, um, for the power planning and that. So that means that we can see more clients and any issues around the getting the SOAs written can be done straight away. Have you always been fee for service or what happened when that cha what happened when the commission structure changed industry wise for you?

Um, we invoice our fees, so it is fee for service, um, but there's a whole lot of talk around that, whether you get commissions fees or whatever, but basically you work out what you want to get from the client, and whether you get it by commissions, fees, trails, whatever, the amount's gonna be the same. Um, you have to have the skill, you have to have a different conversation with the client now, cause you have to price yourself rather than just say, well, somebody else is charging this.

Um, we invoice our fees, so it is fee for service, um, but there's a whole lot of talk around that, whether you get commissions fees or whatever, but basically you work out what you want to get from the client, and whether you get it by commissions, fees, trails, whatever, the amount's gonna be the same. Um, you have to have the skill, you have to have a different conversation with the client now, cause you have to price yourself rather than just say, well, somebody else is charging this.

Yeah. So, um, well, it's no secret. We now moving, we were 0.88 on the balance of the client's funds, of funds under management. We're just putting that up to 1%, and we're still low in the market. But for us, that again, has a significant difference to our top line. And none of the clients are pushing back.

Yeah. So, um, well, it's no secret. We now moving, we were 0.88 on the balance of the client's funds, of funds under management. We're just putting that up to 1%, and we're still low in the market. But for us, that again, has a significant difference to our top line. And none of the clients are pushing back.

Um,

Um,

Um, the market in Perth at the moment, it's always, Perth's always fascinating, you've got this beautiful big city and depending on where the mining boom is, it's either full or empty.

Um, the market in Perth at the moment, it's always, Perth's always fascinating, you've got this beautiful big city and depending on where the mining boom is, it's either full or empty.

Yeah, well, we've seen that in Subiaco, um, when the mining boom was in full 4, there wasn't enough office space in Perth, so then the people moved into West Perth, and then they started moving into Subiaco. But now all that's gone, um, there's plenty of empty offices around, and to the point where our rent is probably less than half what it was during the boom.

Yeah, well, we've seen that in Subiaco, um, when the mining boom was in full 4, there wasn't enough office space in Perth, so then the people moved into West Perth, and then they started moving into Subiaco. But now all that's gone, um, there's plenty of empty offices around, and to the point where our rent is probably less than half what it was during the boom.

Oh, I'll come set up a practice over here, that's fantastic news. Where the, you sort of talk about wealth as being a big opportunity for you, but you're at zero roadshow today, which is very much a technology conference. Where's the technology opportunity for you in your practice?

Oh, I'll come set up a practice over here, that's fantastic news. Where the, you sort of talk about wealth as being a big opportunity for you, but you're at zero roadshow today, which is very much a technology conference. Where's the technology opportunity for you in your practice?

We one of the apps we use is My Prosperity, and the main.

We one of the apps we use is My Prosperity, and the main.

Uh, information, one of the main information holders in the financial planning world is X plan, and now they're starting to link into each other. And so getting clients on board with that, being able to get the access to the data has been really good.

Uh, information, one of the main information holders in the financial planning world is X plan, and now they're starting to link into each other. And so getting clients on board with that, being able to get the access to the data has been really good.

So, so you're, well, yeah, but that's not accounting tech. I mean, give us something juicy, accounting tech. Well, our frustration is that accountants that we've seen in the last 5 or 10 years, the accounting industry's been completely revolutionized and the financial planning world is years behind.

So, so you're, well, yeah, but that's not accounting tech. I mean, give us something juicy, accounting tech. Well, our frustration is that accountants that we've seen in the last 5 or 10 years, the accounting industry's been completely revolutionized and the financial planning world is years behind.

But it's, it's because I think you need a, there's elements of both that need to come together. So that approach to technology and and service automation is critical. I think you were telling me the story that like the financial planners want things printed and in PDFs and need need these like slow responses to get things into banks and things like that. But what financial planners say that accountants don't have is this approach to client servicing that's much more engaged, like they're more, I don't know, salesy. I don't kill me, Paul, but they are.

But it's, it's because I think you need a, there's elements of both that need to come together. So that approach to technology and and service automation is critical. I think you were telling me the story that like the financial planners want things printed and in PDFs and need need these like slow responses to get things into banks and things like that. But what financial planners say that accountants don't have is this approach to client servicing that's much more engaged, like they're more, I don't know, salesy. I don't kill me, Paul, but they are.

Um, I wouldn't say salesy, but it's.

Um, I wouldn't say salesy, but it's.

If, if you're offering accounting and financial planning services, that allows you to have a deeper conversation with your clients, um.

If, if you're offering accounting and financial planning services, that allows you to have a deeper conversation with your clients, um.

You're able to help them in so many more areas, um, I mean, how did you go on your phase of your exam?

You're able to help them in so many more areas, um, I mean, how did you go on your phase of your exam?

I've only done a practice one and I've passed it, but I've got to do the real one, but

I've only done a practice one and I've passed it, but I've got to do the real one, but

Like I'm in my mid-50s, um, 30 years ago was the last time I sat a 3 hour exam and to sit down for 3 hours in the one spot, concentrating straight away, like you're completely out of practice.

Like I'm in my mid-50s, um, 30 years ago was the last time I sat a 3 hour exam and to sit down for 3 hours in the one spot, concentrating straight away, like you're completely out of practice.

And, and, and for older, it's, it's, it's a real hassle. Not just doing it. I mean, cause you know the legislation, but it's the physical process of sitting there for 3 hours in a seat that's uncomfortable at a table that's the wrong height on someone else's laptop that you're not familiar with. It's a struggle. Other than that, it's running really smoothly. Yes. So, yeah, after I did the practice one, I was trashed, so it sort of put me off. I'm leaving it till later, um, to the last minute, you mean? Yeah.

And, and, and for older, it's, it's, it's a real hassle. Not just doing it. I mean, cause you know the legislation, but it's the physical process of sitting there for 3 hours in a seat that's uncomfortable at a table that's the wrong height on someone else's laptop that you're not familiar with. It's a struggle. Other than that, it's running really smoothly. Yes. So, yeah, after I did the practice one, I was trashed, so it sort of put me off. I'm leaving it till later, um, to the last minute, you mean? Yeah.

Uh, we just have the, the ladies at the uh Perth Convention Center pack up lunch next to us. I seem to always find where lunch is to record from these days.

Uh, we just have the, the ladies at the uh Perth Convention Center pack up lunch next to us. I seem to always find where lunch is to record from these days.

Um, the Perth employment market, easy, tough to get talented staff.

Um, the Perth employment market, easy, tough to get talented staff.

Well, during the boom, um, you couldn't get anyone, but now it's pretty OK. But we, we've got a good team with us now, um, so if we need to expand, we're just gonna get more outsourcing resources, um, you're outsourcing at the moment overseas? Yes. Who are you doing that with? Um, well, our team's in based in India, right? Oh wow. And how'd you find the process of getting work over there?

Well, during the boom, um, you couldn't get anyone, but now it's pretty OK. But we, we've got a good team with us now, um, so if we need to expand, we're just gonna get more outsourcing resources, um, you're outsourcing at the moment overseas? Yes. Who are you doing that with? Um, well, our team's in based in India, right? Oh wow. And how'd you find the process of getting work over there?

Oh, it's easy. Everything is, is in the cloud now, so, um, the great thing is these days that anything you can do with a computer doesn't matter where the computer is. So that's even for like myself. I could go to Rottnest or I can go overseas or over East and still do all my work. Yeah. I'll be coming in the footy season. So, um,

Oh, it's easy. Everything is, is in the cloud now, so, um, the great thing is these days that anything you can do with a computer doesn't matter where the computer is. So that's even for like myself. I could go to Rottnest or I can go overseas or over East and still do all my work. Yeah. I'll be coming in the footy season. So, um,

So the ability to do work anyway, I know Paul was fascinated with it, he went on his two month trip, but tech technology did not talk about Paul, is that alright? Well, the former, should I, should I say the former host.

So the ability to do work anyway, I know Paul was fascinated with it, he went on his two month trip, but tech technology did not talk about Paul, is that alright? Well, the former, should I, should I say the former host.

Um, the technology just allows you to do it. And the biggest thing, um, is your own mindset. As soon as you, you always think, gee, maybe I'd like to do that, or I should try it, but once you actually do it, it becomes easy. Have you worked on things to, to change your mindset around that? Like, has that been an easy thing? I mean, you're an experienced guy. Yeah.

Um, the technology just allows you to do it. And the biggest thing, um, is your own mindset. As soon as you, you always think, gee, maybe I'd like to do that, or I should try it, but once you actually do it, it becomes easy. Have you worked on things to, to change your mindset around that? Like, has that been an easy thing? I mean, you're an experienced guy. Yeah.

Um, have I worked on stuff? Yes, I, I've, oddly enough, we're based in Perth, but our one of our biggest clients is in Sydney, so I go over and see her twice a year. And just being the ease of being able to do my work over there, out of the office, which is great because it frees up a bit more thinking time, um, it's just easy to do. Uh, we're at 0 r, so let's give 0. What's your favorite zero feature?

Um, have I worked on stuff? Yes, I, I've, oddly enough, we're based in Perth, but our one of our biggest clients is in Sydney, so I go over and see her twice a year. And just being the ease of being able to do my work over there, out of the office, which is great because it frees up a bit more thinking time, um, it's just easy to do. Uh, we're at 0 r, so let's give 0. What's your favorite zero feature?

Favorite zero feature. Don't say, you know, auto bank coding, not the boring stuff.

Favorite zero feature. Don't say, you know, auto bank coding, not the boring stuff.

Um, payroll's a lot better. So you you like zero payroll and you're growing your wealth management business, you might be the most unique accountant in Australia. Oh, thanks for that. I'll take that as a compliment, um.

Um, payroll's a lot better. So you you like zero payroll and you're growing your wealth management business, you might be the most unique accountant in Australia. Oh, thanks for that. I'll take that as a compliment, um.

The thing is though, in my practice, I'm not using Xero with clients every day. I'm sort of a.

The thing is though, in my practice, I'm not using Xero with clients every day. I'm sort of a.

I've got staff to do the processing work, I don't need to be involved in it, so I'm not in using Xero every day like that. How are you pricing these days?

I've got staff to do the processing work, I don't need to be involved in it, so I'm not in using Xero every day like that. How are you pricing these days?

Uh, we use strictly value pricing, price upfront, clients pay by monthly direct debit, um, is that more fixed pricing, do you think on the fixed, you know, on the fixed versus value, that's more fixed?

Uh, we use strictly value pricing, price upfront, clients pay by monthly direct debit, um, is that more fixed pricing, do you think on the fixed, you know, on the fixed versus value, that's more fixed?

It's a combination if we get, um, out of scope work, it's value priced, um, but I think the great thing that's taken 10 years to get right, but the great thing for us is that, um, with the monthly direct debits, your cash flow's pretty consistent throughout the year, so that takes away a lot of stress running a practice.

It's a combination if we get, um, out of scope work, it's value priced, um, but I think the great thing that's taken 10 years to get right, but the great thing for us is that, um, with the monthly direct debits, your cash flow's pretty consistent throughout the year, so that takes away a lot of stress running a practice.

Um, and we're almost at the point where our direct debits, we could just shut the office for a year and have enough revenue to pay all the bills without billing any more. So, I sat that closed one, done, that's it. But it's interesting, like, a lot of these apps don't talk about things like making money and making cash flow, and, and it changed EBS we've chosen to do that on this roadshow, because we, we think if, if, if an app can't actually prove that it's gonna make you money, or put you in a significantly better position than you currently are,

Um, and we're almost at the point where our direct debits, we could just shut the office for a year and have enough revenue to pay all the bills without billing any more. So, I sat that closed one, done, that's it. But it's interesting, like, a lot of these apps don't talk about things like making money and making cash flow, and, and it changed EBS we've chosen to do that on this roadshow, because we, we think if, if, if an app can't actually prove that it's gonna make you money, or put you in a significantly better position than you currently are,

Don't mess around with it. Look, we've used Change GPS since it was, well, when it was developed under the account banner. Um, so that's, I, I would hate to think how long ago that was. But the good thing with Change GPS is if you're setting up a practice or you don't have systems, those systems and ideas are already in Change GPS. So it's easy to adopt that and use those processes, um, in your practice. So,

Don't mess around with it. Look, we've used Change GPS since it was, well, when it was developed under the account banner. Um, so that's, I, I would hate to think how long ago that was. But the good thing with Change GPS is if you're setting up a practice or you don't have systems, those systems and ideas are already in Change GPS. So it's easy to adopt that and use those processes, um, in your practice. So,

Sending out trust minutes and um ASIC things and uh the tax planning.

Sending out trust minutes and um ASIC things and uh the tax planning.

We've used all that stuff and it's it's just made it so much easier for us. We're getting into tax planning seasons, how are you gonna use it for tax planning this year?

We've used all that stuff and it's it's just made it so much easier for us. We're getting into tax planning seasons, how are you gonna use it for tax planning this year?

Um,

Um,

We, we will go through the process. A lot of our clients, we've already built into their fees that um uh an amount for tax planning. So when, if they don't have that, so the smaller clients, if they don't have it, then we can use the change GPS model to get them in to have a look at their tax planning. You, you literally use it to get new revenue in.

We, we will go through the process. A lot of our clients, we've already built into their fees that um uh an amount for tax planning. So when, if they don't have that, so the smaller clients, if they don't have it, then we can use the change GPS model to get them in to have a look at their tax planning. You, you literally use it to get new revenue in.

Yeah, oh well, that's, that's what it's there for, mate. Paul, we're, we're not editing that, Paul, that's going live to air. And if you want to inquire about Shane, nah, I wouldn't do that on the show, it's a bit unfair.

Yeah, oh well, that's, that's what it's there for, mate. Paul, we're, we're not editing that, Paul, that's going live to air. And if you want to inquire about Shane, nah, I wouldn't do that on the show, it's a bit unfair.

So, so, or is it? There, there's a, there is a lot of value, and I was just talking, I've got a team member here today, Tracey, she's uh, she runs all our processes and it's fantastic to have someone in like that in the business, um.

So, so, or is it? There, there's a, there is a lot of value, and I was just talking, I've got a team member here today, Tracey, she's uh, she runs all our processes and it's fantastic to have someone in like that in the business, um.

Just how we can use our outsource team to use more of the resources that are in the Change GPS because everyone's in their practice thinking, oh, I should do that one day, I should do that one day. Well, today's the day, the best time to plant a tree was 20 years ago, the second best time is today. So, if you can use those extra resources to start embedding some of these processes, then you just generate more revenue. Malcolm, any final messages for the listeners out there, the dear listeners?

Just how we can use our outsource team to use more of the resources that are in the Change GPS because everyone's in their practice thinking, oh, I should do that one day, I should do that one day. Well, today's the day, the best time to plant a tree was 20 years ago, the second best time is today. So, if you can use those extra resources to start embedding some of these processes, then you just generate more revenue. Malcolm, any final messages for the listeners out there, the dear listeners?

Um, my final message is, it's all about your mindset. If you always hesitate or worry about implementing stuff, it just never gets done. But if you make the decision to do something, suddenly it becomes a whole lot easier than you ever thought, and you start to get on top of things and just build your practice. Thank you very much, Malcolm. David, pleasure, thank you.

Um, my final message is, it's all about your mindset. If you always hesitate or worry about implementing stuff, it just never gets done. But if you make the decision to do something, suddenly it becomes a whole lot easier than you ever thought, and you start to get on top of things and just build your practice. Thank you very much, Malcolm. David, pleasure, thank you.

Thanks again

Thanks again

for listening to an episode of From the Trenches. David and I love to hear from listeners, so you can reach out if you've got feedback or story ideas, get in touch. I can be reached on Twitter at Paul Meisner or on LinkedIn, Paul Meisner. I'm on Twitter at David Boyer, B O Y A R,

for listening to an episode of From the Trenches. David and I love to hear from listeners, so you can reach out if you've got feedback or story ideas, get in touch. I can be reached on Twitter at Paul Meisner or on LinkedIn, Paul Meisner. I'm on Twitter at David Boyer, B O Y A R,

on LinkedIn, David Boyer.

on LinkedIn, David Boyer.

From the trenches.

From the trenches.