Your 2026 practice management tips

The article is relevant to members in Australia and New Zealand and was current at the time of publication.

Smaller firms are always strapped for time. Here’s a straightforward checklist to help you keep current with public practice housekeeping duties.

1. Client due diligence

Check your client base against your capabilities and service offerings. Scope creep can happen at any time, putting not only your margins but your practice at risk. Review your service offering to determine whether any services you provide are classified as ‘designated services’ under AML/CTF tranche 2. This will help you determine whether you have any AML/CTF obligations.

2. Update terms of engagement

Are your engagement templates current? Are all third-party providers disclosed? Do you use offshoring services and/or AI agents? Remember, nothing is static as far as clients are concerned. It is useful to plan for regular revision and renewal of engagement terms for your recurring engagements. 

An engagement letter that outlines the scope of work in detail, as well as how fees are calculated and the agreed billing schedules, is ideal, says Jodie Smith FCPA, Best Practice Program Manager at CPA Australia.

“Engagement documentation is there to protect both the accountants and their clients from any misunderstanding and assist with risk management for the firm.”

3. Protect client records

Accounting firms are also prime targets for cyber hackers wanting to steal highly confidential client data — especially tax file numbers (TFNs) — that can potentially be sold online to other criminals. 

Nicole Gabryk, a partner at Wotton + Kearney who specialises in cyber, privacy and technology, notes that “TFN information is involved in almost 20 per cent of all reported data breaches. We see accounting firms being hit frequently, [as well as] tax professionals.” 

As the keepers of the most sensitive client financial information, security and privacy concerns are key for public practitioners. Check your compliance with Australian and/or New Zealand — and document-retention times.

4. Check your insurance

Review your public liability, cyber, management liability, property and business interruption insurance cover. 

Double-check that your professional indemnity insurance meets CPA Australia’s By-Laws. Assess your cover and limits, ensuring that all services are covered and notify us of any issues within 10 business days. If you have had any claims, ensure you inform CPA Australia using the professional indemnity insurance portal. Alternatively, you can email [email protected]

5. Focus on quality management

Schedule time to monitor your quality management and risk management framework documentation. 

APES 320 Quality Management for Non-Assurance Services requires members to maintain a system of quality management (SOQM) that is up to date, with sufficient evidence of an active monitoring process, and of monitoring policies and procedures. Firms which engage in audits, assurance, or related services, need to comply with ASQM 1.

Smith says the standard requires annual monitoring, but practitioners do have to think about their SOQM more than once a year. 

“We recommend updating as they change processes, ensuring everyone in the firm is aware of any change,” she says. 

6. Prepare for sudden exits 

Only 42 per cent of public practitioners have a succession plan. 

More than 50 per cent of small to medium business owners exit due to ill health, divorce, disputes, financial distress, death, insolvency and various unforeseen events, says Stephen Jones FCPA, a partner at Succession Plus. Life can get in the way of business and it is important, particularly for small practices, to plan for unforeseen circumstances such as illness or sudden caregiving responsibilities.

7. Australian practitioners: Get ready for AML/CTF obligations

Stage two anti-money laundering reforms are now firmly on many public practitioners’ agendas, with the deadline set for 1 July 2026. 

In her review of the Act, Belinda Zohrab, regulation and standards lead at CPA Australia, notes that the wording around what makes a designated service is very broad, and businesses who think it doesn’t apply to them are mistaken. Here’s a list of designated services. 

Zohrab emphasises: “Anything to do with any sort of transaction, even in the contemplation of a transaction, may well be found to be a designated service. It is not about the size of your practice, the size of the deals or how large your clients are — it is about the type of services you provide, which can be something as basic as providing advice about the purchase or sale of real estate or an entity like a company.” 

These are just a few of the practice-management issues to be aware of in 2026. Click here for the full action list and related CPA Australia resources. 

Read this story for additional advice on preparing for the year.