In the world of Australian business, the small business owner is often the unsung hero. Whether you are running a one-person operation or managing a growing team, the journey of entrepreneurship is filled with highs, lows, and plenty of tax questions. In this episode of the Lat Chat podcast, John Sidi, co-founder of Latitude Accountants, sat down with Client Director Jacob Fahmy to discuss his journey from a high school student in Plumpton to being named the best accountant under 30 in 2020.

Jacob’s story is a masterclass in the “immigrant work ethic” and the power of adding value to achieve success. In this post, we’ll explore the key takeaways for small business owners looking to scale their operations and why a personal touch in accounting makes all the difference.

The Foundation: Why Mindset Matters for Business Owners

Success in business rarely happens by accident. For Jacob, it started with a high school realization that he was just as capable as anyone else. This mindset is crucial for small business owners in Australia who may feel overwhelmed by competition or complex regulations.

The “Value First” Principle

One of the most profound points discussed in the podcast is the direct link between value and income. Jacob notes that “the more value you add, the more money you will make”. For a business owner, this means focusing less on the transaction and more on the journey you take with your client.

Lessons from Humble Beginnings

Growing up in Plumpton, near Mount Druitt, Jacob was raised with a strong work ethic. His father taught him a vital lesson when Jacob came third in a biology test: he was just as capable as the student who came first because they had the same resources. This philosophy—that 100% effort is the only acceptable baseline—is what drives successful founders to go the extra mile.

Navigating the Career Path: From Corporate to Startup

Jacob’s career began at Nexia, a top 10 mid-tier firm, where he learned the “rite of passage” for many accountants: scanning thousands of documents and sitting on the phone with the Australian Taxation Office (ATO) for hours.

However, he soon realized a mismatch between the mid-tier corporate world—which focused on high-net-worth clients and wealth movement—and his passion for supporting small businesses and startups. This led him to join Latitude Accountants during its early, “scrappy” startup phase.

Key Lessons for Growing Your Business

• Embrace Technology Early: Jacob recalls being “thrown into the deep end” by teaching a cafe owner how to use Xero when the software was still relatively new. For Australian businesses today, using cloud-based accounting software like Xero is no longer optional—it is a necessity for efficiency and compliance.
• Agility is Your Superpower: Small businesses can pivot quickly. Unlike large corporate firms, a small business can make decisions on a whim to better serve a client or adapt to market changes.
• Transparency and Honesty: Building a brand requires being open about your operations and goals. Jacob’s transition to starting his own firm, Advisory Corp, was driven by a desire to “not die wondering” and a commitment to transparency with his mentors.

Facing the Pressure: The Reality of Being a Founder

Starting a business at 26, shortly after getting married, brought immense pressure. Jacob highlights several factors that helped him survive the early days of Advisory Corp:

1. Stability at Home: Having a partner with a stable job can provide the “breathing room” needed to take risks in the first year.
2. Financial Discipline: Avoiding “stupid debt” and credit card debt is essential when cash flow is unpredictable. Jacob emphasizes the importance of getting into a financial position where the pressure isn’t crushing.
3. Networking and Visibility: Jacob went “hard on social media” and networking every night—attending BNI and other Meetup groups—to attract the right clients.

The COVID-19 Pivot

Jacob’s business journey took a massive turn in March 2020. While many firms were reeling, he leaned into the stimulus packages, educating his clients on JobKeeper, the Cash Flow Boost, and other ATO stimulus measures. He used social media, particularly Instagram, to reach business owners who were looking for immediate answers that traditional firms were too slow to provide. This illustrates a vital point: a good accountant doesn’t just “do the books”; they help you navigate the ever-changing legal and economic landscape.

Managing the “Boring” Stuff: Budgets and Margins

Even if you aren’t “good at maths” (and Jacob admits that many accountants rely heavily on Excel these days), you must understand your numbers.

In his first meeting with a cafe owner, Jacob had to build a budget from scratch by identifying:

• Total expenses
• Total income
• Profit margins

Understanding these three pillars is the difference between a side hustle and a sustainable business.

The Evolution of the “One-Man Band”

Jacob and John discuss the transition from being a solo practitioner to building a brand. In the modern era, the “one-man band” accounting firm is struggling because the volume of compliance and fast-moving tax updates is too much for one person to handle. Scaling your business requires moving from individual effort to a shared vision and shared overheads.

Frequently Asked Questions

What is the best accounting software for a small business in Australia?

Xero is widely considered the gold standard for Australian small businesses. It is user-friendly, cloud-based, and integrates seamlessly with the ATO for GST and Single Touch Payroll (STP) reporting.

Do I need to be good at math to run a successful business?

Not necessarily. While you need to understand your margins and cash flow, modern tools like Excel and Xero do the heavy lifting for calculations. The key is being able to interpret the data to make strategic decisions.

How do I manage taxes if I operate in multiple Australian states?

While federal taxes like GST and Income Tax are consistent, state-based taxes such as Payroll Tax, Stamp Duty, and Land Tax vary significantly between states and territories. You must consult with a professional to ensure compliance in each specific jurisdiction where you operate.

What should I look for in an Australian accountant?

Look for someone who takes the journey with you. A great accountant should be empathetic to the pressures of business ownership, technically proficient (look for a Chartered Accountant or CPA), and proactive in offering strategic advice rather than just doing compliance work.

How often should I review my business budget?

A budget should be a living document. At a minimum, you should review your performance against your budget monthly. This allows you to spot dips in income or spikes in expenses early, much like the “tactical” approach used to monitor turnover and gross profit.

Partner with Experts Who Care

The transition from a “one-man band” to a thriving business requires more than just hard work; it requires a strategic partnership with experts who understand your vision. At Latitude Accountants, we believe the small business owner is the hero, and our job is to provide the technical expertise and support to help you win.

Whether you are navigating Div 7A, managing superannuation obligations, or looking to scale your operations across Australia, our team is here to help.

Contact the expert team at Latitude Accountants today for strategic accounting and business advice tailored to your specific situation.

• Phone: 1300706597
• Email: info@latitudeaccountants.com.au
• Book online via our website.
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Disclaimer

The information provided in this post is general in nature and does not constitute personal financial or tax advice. Laws and regulations, particularly state-based taxes like Payroll Tax and Stamp Duty, vary across Australia. Readers should seek professional advice regarding their specific circumstances before making any financial decisions.