What’s the Difference Between Compliance and Advisory Accounting (and Why It Matters for Your Business)
Most business owners think of their accountant as the person who keeps the ATO happy… they’re one who files your tax return, lodges your BAS, and makes sure the boxes are ticked.
That’s compliance, and it’s absolutely essential.
But there’s another side to accounting that’s all about you. It’s about understanding what your numbers actually mean and how to use them to make better decisions.
That’s advisory… and when done right, it can completely change the way you run your business.
Compliance vs Advisory: Same Numbers, Different Purpose
Both compliance and advisory accounting use the same data, your financial statements, transactions, and reports. The difference lies in who it’s for and what it’s used for.
Compliance is for the tax man (the ATO or Revenue NSW).
Advisory is for YOU, the business owner.
Compliance tells the story of what’s already happened.
Advisory uses that story, along with your goals, vision, and opportunities, to help you plan what happens next.
What is Compliance Accounting (and Why You Still Need It)
Compliance is the foundation of every good business. It’s the behind-the-scenes work that keeps your finances accurate, your business in the ATO’s good books, and the banks happy (if you want a credit card or a big old loan).
It includes things like:
BAS lodgements
Payroll and superannuation reporting
Ensuring your business meets all legislative requirements
In short: compliance reflects on the past. It looks backward to report what’s already happened.
And while it might not sound exciting, accurate compliance is critical, because it’s the foundation everything else is built on. If your numbers aren’t right, your business decisions won’t be either.
What is Advisory Accounting (and Why It Changes Everything)
Where compliance looks backward, advisory looks forward.
Advisory is about using your financial (and non-financial) information to make smarter decisions. It’s not about tax, it’s about strategy. It’s how you move from “keeping up” to actually getting ahead.
At Kindred, we use advisory tools and experience to help you understand where your business is headed and how to get there confidently.
Advisory Accounting is organic and the advice you receive from your accountant will be as unique as your business. Depending on your situation it could include:
Cashflow forecasts – so you can plan ahead and avoid surprises
Pricing models – to help you charge profitably and sustainably
Sensitivity analysis – shows how changes in key data (like prices, costs, or interest rates) affect your financial outcomes, so you can understand the impact on your results.
Costing analysis - a review of your expenses to ensure your costs and charge-out rates are still up to date.
Due diligence – for growth, acquisitions or new investments
Advisory combines your numbers with your goals, your market opportunities, and your plans for the future.
It gives you a more well rounded picture, built on data, but grounded in your vision.
When to Focus on Compliance vs Advisory
You’ll always need compliance, it’s what keeps your business legitimate and your obligations up to date.
But if you want to make proactive, informed decisions (instead of reacting to whatever comes next), that’s where advisory becomes powerful.
Here’s the simple way to think about it:
When both work together, you get solid foundations and strategic insight.
How we Combine Compliance and Advisory at Kindred
At Kindred, we don’t believe compliance and advisory should live in separate worlds.
Your compliance work gives us accurate, reliable data… and from there, we help you use those same numbers to make confident business decisions for your future.
That might look like:
Turning last year’s tax data into next year’s cashflow plan
Using your profit and loss to understand pricing opportunities
Running “what if” scenarios before you make a big investment or hire
Because we know you don’t just want to stay compliant, you want to build something that lasts.
We’re here to give you both the accuracy and the clarity to do that.
The Bottom Line
Compliance keeps you compliant.
Advisory keeps you competitive.
They use the same numbers, but for completely different purposes - one reports on the past, the other helps you shape the future.
At Kindred, we make sure you have both… because when you understand your numbers and how to use them, you’re not just running a business - you’re leading it.
Talk to us to start planning your future.
Not working with us yet? CLICK HERE to get started and make your life a whole lot easier.
