Can my accountant value my business?
The short answer
An accountant can prepare a business valuation, and many do it competently. The questions are whether they hold a valuation accreditation, whether they are independent of the position the valuation supports, and whether the report would survive review by the ATO, an opposing expert or a court.
Accounting and valuation are different disciplines
Accounting measures what happened; valuation forms an opinion about what something is worth to a hypothetical buyer. The overlap is real — normalising earnings is accounting work — but deriving a multiple from market evidence, assessing minority discounts and defending a conclusion under cross-examination are not part of accounting training.
Independence is the harder problem
Where your accountant advises on a tax position and also provides the valuation supporting it, they are both the adviser and the evidence. That is uncomfortable for them and easy for a reviewer to attack. Most experienced accountants recognise this and refer the valuation out — it protects them as much as you.
What third parties look for
A reviewer, whether at the ATO, a bank or a court, looks first at who prepared the report and what qualifies them. A signed declaration from a Certified Practising Valuer, with the credential and the independence stated, clears that hurdle immediately. An unaccredited report starts by having to justify itself.
The best arrangement is both
Your accountant knows the business, the history and the tax position, and their input makes the valuation better and faster. We provide the independent opinion. Most of our tax and transaction work is referred by accountants who want the number to be defensible precisely because they are advising on what it supports.
The numbers
When an accountant is enough, and when they are not
The test is who has to accept the number, and whether the preparer has an interest in it.
Scroll the table sideways →
| Situation | Accountant sufficient? | Why |
|---|---|---|
| Internal planning or curiosity | Usually yes | Nobody external needs to rely on it |
| Setting a price between friendly parties | Sometimes | Depends on whether both sides accept the preparer |
| ATO market value substantiation | Risky | Independence and accreditation are what get it accepted |
| Family law or litigation | No | Expert evidence rules require an independent qualified expert |
| Bank finance | Usually not | Credit teams generally require an independent valuation |
| Shareholder exit under a deed | Rarely | The deed usually requires an independent or jointly appointed valuer |
None of this reflects on the quality of accounting work. It reflects the fact that a valuation is an opinion, and whose opinion it is determines whether a third party will act on it.
Caveats
What to ask before appointing anyone
Four questions, in this order. Most of the risk is removed by the first two.
Who answered this
Prepared by the valuation team at Business Valuations Brisbane, the business valuation division of Asset Valuations Group. Every report we issue is signed by a Certified Practising Valuer of the Australian Valuers Institute. General information only — not advice on your specific circumstances.
- What is your valuation accreditation? CPV, CBV or equivalent from a recognised body, held currently. Ask to see it — a genuine valuer will expect the question.
- Are you independent of this matter? Have they advised either party, prepared the accounts, or have any interest in the outcome? Disclosure now prevents a challenge later.
- Have you given expert evidence? Even where your matter will not reach court, a valuer who has been cross-examined writes differently — and better.
- Is your fee fixed and independent of the value? A fee contingent on the value concluded invalidates the report for every purpose that matters.
Reviewed by a Certified Practising Valuer
Reviewed by Jarrad Khoury, Director and Head of Valuations — Registered Valuer (QLD, Not Limited), Licensed Valuer (WA, Not Limited), CPV and CBV. Published by Business Valuations Brisbane, the business valuation division of Asset Valuations Group.
Last reviewed
Work with your accountant and an independent valuer.
A free 15-minute call answers it for your business specifically. No obligation, and a fixed fee in writing if you go ahead.
1300 778 033