5.2 Resident accountants as contributors to the morale of local residents
The consequences of absent or reduced local accounting firms for individuals and
business owners can be significant. Consumption of services abroad, which is outside a
community and region, causes “leakage [from the local economy] in terms of dollars
and cents [. . .] in terms of valuable time” (Developer 5). This leakage extends to
the content of the advice provided especially in terms of investment advice (also
Developer 7), where accountants located outside a region are unlikely to have any
knowledge of local investment opportunities.
Two main consequences were identified by the participants: the creation of informal
networks of support and lost government assistance in special circumstances. In the
first, there may be an increasing reliance on “normal people” (Developer 4) for business
advice. Such people do not have specialist accounting knowledge but may have
completed a certificate level TAFE course or have business experience. This form of
support is particularly important to voluntary organisations where they may offer to
“do the books” (Developers 4 and 6). The extent of this informal system of support is
unknown but its existence is established. The second consequence is that people in
some rural areas go without professional advice often to their detriment. This was
especially evident in relation to government drought assistance packages. More than
one participant highlighted the negative effect on drought assistance applications
resulting from the absence of professional assistance. Preparation of, and application
for, drought assistance includes providing information on the range of assistance
available and ensuring the receipt of supporting documentation by the relevant
government agencies. The absence of such assistance can be significant with a higher
incidence of failed application for those prepared without direct assistance: