Smaller firms slam accounting regime as ‘useless’

afr.com:

Smaller accounting firms say the current regulatory regime is useless and riven by conflicts of interest between the major professional bodies and the larger firms.

The larger firms counter the system is working well, revealing a split as parliament considers an overhaul of the overlapping system of government and self-regulation following the PwC tax leaks scandal.

But Top 100 Accounting Firms’ leaders were united on one matter: the growing amount of regulation and red tape imposed by government bodies is needlessly increasing costs and hitting their productivity, they say.

Sovereign Private partner Sheridan Green thinks Chartered Accountants ANZ doesn’t cater effectively for smaller firms. Dominic Lorrimer

Leaders were asked about what changes, if any, should be made to the rules governing accounting firms, as part of the annual Top 100 survey. The PwC tax leaks scandal has triggered two federal inquiries and Treasury reviews examining different aspects of how firms and the profession are regulated.

“To put it lightly, the current regulatory regime for accounting firms is useless,” said Sheridan Green, one of two partners at tax advisory firm Sovereign Private.

“There are severe conflicts between the [CA ANZ and] The Tax Institute, and their involvement with the larger firms. As a small practice, we have felt alone and abandoned by our governing bodies.

“There is little or no support for small practice and the way the [CA ANZ] treats smaller firms is terrible. Our preference would be for the establishment of a new [professional] body that represents traditional accounting firms outside of the big four and consulting.”

Aaron Fitchett, a tax partner at six-partner firm Baumgartners, also felt self-regulation by the