Australians spend more on lawyers & accountants than restaurants, nightclubs, bars and pubs. Combined.

November 17, 2018
Australians spend more on lawyers & accountants than restaurants, nightclubs, bars and pubs. Combined.

We spend a lot of money on legal and accounting services every year in Australia. While it’s not a purchase that most small business owners and individuals make often, it costs a lot when you do. At FirmChecker, we specialise in matching people with the right lawyers and accountants through ratings and reviews.

In this post, we examine why getting the right advisor matters and give you three key take-outs in terms of what you should do with this fact. Hint: it doesn’t mean you shouldn’t use lawyers and accountants!

 

 

 

Spend on Law & Accounting compared to Hospitality

Restaurants[1]

$20 billion is spent on restaurants annually in Australia. Overall, there are 288,854 workers in the industry. That means about $1,200 per year is spent on restaurants per Australian of working age.

Hotels[2]

$8 billion is spent on hotels in Australia each year. Spend per Australian of working age is not a great statistic given the number of foreigners spending money on hotels which is inherent to the business. However, notionally the spend per Australian would be  $480.

Pubs, Bars and Nightclubs[3]

Everyone knows Australians love a drink. $17 billion is spent on Pubs, Bars and Nightclubs annually in Australia. Average spend per year of Australian worker of $1000 per year.

Lawyers & Accountants[4]

Think that more is spent on restaurants than lawyers and accountants? Think again. Just because the purchases are more frequent, doesn’t mean more is spent on them.

In Australia, $40 billion is spent on legal and accounting advice combined annually ($20 billion on each). So, that means $2,400 per year is spent per Australian of working age on legal accounting services.

3 Key Take-Outs

Does this mean that Australian lawyers and accountants are rip-off artists and need to be stopped? Of course not.

They provide a highly skilled, highly valuable service. There are also lots of other factors that aren’t considered in this analysis – including who’s actually paying. A lot of legal and accounting spend is made by big companies and government.

This analysis is simply indicative of how expensive it is when you do get a lawyer or accountant. As a result, you should make sure you’re getting the right advice. You wouldn’t go to an expensive restaurant without checking reviews.

  1. Check their reputation online. Are they on FirmChecker? This generally indicates they’re open to feedback and engaged with their clients. If not, look for google reviews or get a personal recommendation from someone who knows their stuff.
  2. Get a fixed fee. Don’t allow them to put the fee risk on you – they know more about the service and should be taking the risk themselves. The peace of mind will make you more satisfied afterwards.
  3. But…don’t neglect issues because of the cost. While individual legal and accountancy matters can cost quite a lot – that doesn’t take into account an important factor – Good legal and accounting advice can save you, or make you a lot of money. It makes a difference.

Further reading

About the Author

Ben Farrow is the Managing Director of FirmChecker. He holds commerce (economics & finance) and law (Juris Doctor) degrees from the University of Melbourne and digital marketing certifications from Northwestern University. Ben helps small business owners and individuals find the best professional advice.  He also gives tips and tricks on how to run your business more effectively. 

 

[1] https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/restaurants.html

[2] https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/hotels-resorts.html

[3] https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/pubs-bars-nightclubs.html

[4] https://www.ibisworld.com.au/industry-trends/market-research-reports/professional-scientific-technical-services/legal-services.html, https://www.ibisworld.com.au/industry-trends/market-research-reports/professional-scientific-technical-services/accounting-services.html

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