When it comes to managing your money and business finances, it’s easy to assume an Accountant and a Financial Planner do the same thing. In reality, their roles, and the advice they’re legally allowed to provide are quite different.
What an Accountant Does
Accountants focus on your business and tax obligations. Their core responsibilities include:
- Preparing and lodging tax returns
- Structuring your business for efficiency and compliance
- Managing cash flow and financial reporting
- Advising on GST, BAS, payroll, and superannuation
- Helping with budgeting, forecasting, and performance analysis
Accountants operate under the Tax Agent Services Act 2009, and to provide tax advice, they must be registered with the Tax Practitioners Board (TPB). However, this registration doesn’t allow them to give personal investment or superannuation advice, unless they also hold additional financial services licensing.
What a Financial Planner Does
Financial Planners (or Financial Advisers) focus on your personal wealth and future planning. Their work typically covers:
- Retirement and superannuation strategies
- Investment advice and portfolio management
- Life, income, and trauma insurance
- Estate and succession planning
- Goal-based financial strategies (e.g., buying property, saving for education)
Financial Planners must hold, or be authorised under, an Australian Financial Services Licence (AFSL), issued by the Australian Securities and Investments Commission (ASIC). This licensing ensures they meet strict education, ethics, and ongoing compliance standards before giving advice on financial products.
The Licensing Divide – Where Lines Can Blur
This is where business owners can get caught out. Accountants used to be able to give limited advice on self-managed super funds (SMSFs) without holding an AFSL, but this “Accountants’ Exemption” was removed in 2016.
Now, if an Accountant provides advice that influences someone’s decision to make superannuation contributions, starting pensions, set up, or change a financial product (such as an SMSF, insurance, or managed fund), they must be licensed or working under an authorised AFSL representative.
Failing to do so can result in serious penalties and breach of ASIC regulations.
Why Combining Both Can Give You an Edge
In many cases, business owners benefit most when their Accountant and Financial Planner work together. The Accountant ensures your business structure and tax strategy are efficient, while the Financial Planner helps you grow and protect your personal wealth.
This collaboration creates a holistic view where both your business and personal finances are aligned toward your long-term goals.
If your Accountant or Financial Planner ever steps outside their licensed area, they’re required to refer you to a qualified professional. That’s not a limitation, it’s a safeguard.
By engaging both, you ensure your financial advice is legally compliant, strategically sound, and designed around your complete financial goals.
