Key takeaways
Your accountant and a valuer answer different questions.
Accounts and tax returns record what the business has done. A valuation forms an opinion about what the business, or an interest in it, is worth to a hypothetical buyer at a particular date.
Familiarity can be a strength and a limitation.
An accountant's knowledge of your records is valuable, but a long relationship, other services provided or the tax effect of the number can make it harder for others to see the figure as independent.
Reliance decides who should prepare it.
When the ATO, a court, a former spouse, a co-owner or a buyer will examine the figure, an independent, accredited valuer with a documented method is usually the safer choice.
The best outcome uses both professionals.
Your accountant supplies records, explains adjustments and applies the value to the tax or structural decision. The valuer forms and documents the opinion. Each stays within their role.
Ask the same questions of anyone you engage.
Who will rely on the figure, what standard applies, how the fee is set, what engagement type is proposed and what the report will contain are fair questions whether you engage an accountant or a specialist valuer.
Why owners ask their accountant first
For most business owners, the accountant is the first call on anything financial. They know the history of the business, the quirks in the accounts and the owner's personal situation. Asking them what the business is worth is natural, and for an informal conversation it can be perfectly sensible.
The question becomes harder when the number will be used for something consequential. A capital gains tax event, a family law property settlement, a partner buyout, a restructure or a sale all involve someone—the ATO, the other party, a buyer or a co-owner—who may test the figure. At that point it matters not only what the number is, but how it was reached and who reached it.
What each professional is engaged to do
An accountant's core work is recording and reporting: preparing financial statements, lodging tax returns, advising on tax positions and structures, and helping owners understand performance. That work looks backwards at what has happened, and it follows accounting and tax rules.
A business valuer's work looks at the same records for a different purpose. The valuer asks what a hypothetical willing buyer would pay a willing seller for the business, or for a particular interest in it, at a specified date. That involves adjusting the accounts to reflect sustainable earnings, assessing risk and transferability, selecting a method and documenting the reasoning so it can be followed by someone else.
Some accountants hold valuation accreditation and do this work well. Many prefer to refer it, because valuation is a distinct discipline with its own standards, such as APES 225 Valuation Services, which IBV™ voluntarily aligns with, and because they recognise the value of an independent view.
Where independence comes in
Independence does not mean an accountant is biased. It means that a reader of the valuation can see that the person who reached the figure had no reason to prefer one answer over another.
That can be difficult for a long-standing adviser to demonstrate. The accountant may also prepare the tax return that uses the value, advise on the structure being changed, or act for one party in a matter where the other party will scrutinise the number. Even when the work is careful, the other side may question it simply because of the relationship.
An independent valuer engaged on a fixed fee, with no commission and no role in the transaction, removes that question. The IBV™ Independence Guarantee states this plainly: no commissions, no hourly billing, no fee linked to the value concluded and no interest in buying or selling your business. Our article on independent business valuation explains why that matters most when the figure will be challenged.
Signed
A clear valuation conclusion starts with an agreed purpose, relevant evidence and disclosed assumptions. The report identifies the interest valued and explains the reasoning behind its conclusion.
A letter of opinion is not a valuation report
A common outcome when an accountant is asked for a value is a short letter stating a figure or range. That can be useful for internal planning. It usually is not enough when another party will rely on the figure, because it rarely explains the scope, evidence, normalising adjustments, method, risk assessment and limitations behind the number.
The ATO's market valuation guidance describes the elements it expects in a supportable valuation, including the valuer's qualifications, the purpose, the method and the evidence relied on. Our article on an accountant's letter or a valuation report sets out the differences side by side.
When your accountant's view may be enough
There are situations where an informal view from your accountant is entirely reasonable:
Even then, it is worth being clear that an informal indication is not a valuation. IBV™ does not prepare estimates or appraisals for that reason—our lowest engagement is a Calculated Value, which applies a defined method to verified records.
you want a rough sense of value for personal planning, with no transaction or tax event in view;
the figure will not be relied on by anyone outside your own decision-making;
you are deciding whether a formal valuation is worth commissioning at all.
When an independent valuer is the better choice
An independent valuer is usually the better choice when:
In these situations, the value of independence and documented reasoning usually outweighs the convenience of keeping everything with one adviser.
the ATO may review the figure, for example for CGT market value, small business concessions, related-party transfers or restructures;
a family law property settlement includes business interests;
co-owners, shareholders or family members need a figure none of them chose;
a buyer, lender or their advisers will test the earnings and assumptions;
your accountant would prefer not to be seen to have set a number that affects their client.
A practical example
This illustration is not a client matter. Two brothers own a plumbing business through a company, and one plans to retire. Their long-standing accountant suggests a figure based on a multiple of last year's profit. The retiring brother thinks it is too low; the continuing brother thinks it is too high, because last year included a large one-off contract.
An independent valuer would normalise the earnings by removing the one-off contract and setting commercial wages for the work each brother performs. They would assess how much of the customer base depends on the retiring brother personally and test the result against the company's net assets. The report would explain each step, so both brothers can see how the figure was reached and their accountant can apply it to the share transfer and the tax position.
The accountant's knowledge is essential to that process: they explain the contract, confirm wage arrangements and advise on the structure of the transfer. What changes is that neither brother can say the number was chosen by the adviser closest to the other.
Questions to ask before you decide
Whether you are considering your accountant or a specialist valuer, ask:
The answers usually make the right choice clear.
Who will rely on the figure? If anyone other than you will test it, independence and documentation matter more.
What engagement type is proposed? A short letter, a calculated value and a conclusion of value are different products.
What standard applies? Ask whether the work follows or aligns with recognised valuation guidance.
How is the fee set? A fixed fee unrelated to the value avoids an obvious conflict.
What will the report contain? Expect scope, information relied on, adjustments, method, assumptions and limitations.
Is there any existing relationship with the other party? In family law or co-owner matters, this question is particularly important.
How the two work best together
The strongest results come from a valuer and an accountant working together, each in their own role. The accountant supplies financial statements, tax returns and working papers, explains unusual items and owner arrangements, and confirms the tax or structural question the valuation needs to address. The valuer forms the opinion, documents it and explains it. The accountant then applies the value in the tax position, the restructure or the advice to the client.
That division protects everyone. The owner gets a figure that others can rely on, the accountant keeps their advisory relationship clear of the valuation question, and the valuer works from accurate, well-explained records.
IBV™ regularly works alongside clients' accountants and lawyers. If you or your adviser would like to discuss a matter, book a Free Valuation Call and we will confirm the purpose, scope and fixed fee before work begins.
Sources and further reading
Frequently asked questions
Can my accountant value my business?
Your accountant can give an informal view, and some accountants hold valuation accreditation. When the figure will be relied on by the ATO, a court, another party or a buyer, an independent accredited valuer with a documented method is usually more appropriate.
Is a business valuer an accountant?
Not necessarily. Business valuation is a distinct discipline. Some valuers are accountants; others, like IBV™, are specialist valuers accredited by a valuation body who work alongside clients' accountants rather than replacing them.
Source: Australian Valuation Institute
Why would my accountant refer me to a business valuer?
Accountants often refer valuation work to keep their advisory role separate from the figure, to provide independence when another party will scrutinise it, or because valuation is outside their usual practice.
Will the ATO accept a valuation from my accountant?
The ATO looks at the quality of the valuation rather than the title of the person who prepared it. It expects a suitably qualified valuer, a stated purpose, an appropriate method and documented evidence. A short letter of opinion may not meet those expectations.
Is an accountant's letter of value the same as a valuation report?
No. A letter typically states a figure with limited explanation. A valuation report sets out the scope, information relied on, adjustments, method, risk assessment, assumptions and limitations so that another reader can follow the reasoning.
Does using an independent valuer mean my accountant is not trusted?
No. Independence is about how the figure is perceived by other parties, not about the integrity of your accountant. Many accountants recommend an independent valuer precisely to protect their client and their own role.
What does my accountant need to provide to the valuer?
Usually financial statements and tax returns for three to five years, current management accounts, working papers for unusual items, details of owner remuneration and related-party arrangements, and the tax or structural question the valuation is for.
Who should I engage for a family law business valuation?
Because both parties need to test the figure, family law matters generally call for an independent valuer with no existing relationship to either party. Your lawyer can advise on the requirements of your matter.
Can my accountant and the valuer talk directly?
Yes, with your authority. Direct contact usually speeds up the work, reduces misunderstandings about the accounts and helps ensure the valuation answers the question your accountant needs addressed.
How much does an independent valuation cost compared with an accountant's opinion?
IBV™ engagements start with a Calculated Value at a fixed $2,450 + GST. A Limited Scope Conclusion of Value is a fixed $4,950 + GST, and a Full Scope Conclusion of Value is quoted. All fees are agreed in writing before work begins.
A clear, independent view of value — with the evidence behind it.
- Understand the conclusion — and what drives value.
- Gain an independent perspective. Move forward with confidence.
- Benchmark your business against industry performance.
- Identify strengths, risks and opportunities through SWOT analysis.
WHAT YOU GET IN A LIMITED SCOPE VALUATION REPORT
Inside your IBV™ report
Executive Summary
Conclusion of value · Method selected · Valuer qualifications
Detailed Report
Maintainable earnings · Cap rate / multiple · Premise of value
The Evidence Pack
SWOT analysis · Top Performers Report · RAVDA score
APES 225 voluntarily aligned. Report depth and supporting analysis follow your agreed package and engagement scope.
Free Valuation Call
