An Interview with Heiko Petschukat, Partner and Director of Atomic Accounting, WAGBA's Bronze Member
For June ’s edition of InTouch, Partner and Director of Atomic Accounting and WAGBA Treasurer Heiko Petschukat has graciously set aside some time for an extended interview for this member profile for InTouch.
Heiko's Profile:
Originally from Norderstedt, Germany, Heiko obtained both his Bachelors and Masters degree in Australia. With a decade of experience in the accounting industry, including having worked for a global top 10 accounting firm, Heiko established Atomic Accounting Pty Ltd in 2018. He recently made the bold decision to focus solely on his business from 2023. Achieving Xero Silver partner status in February 2023, Heiko also expanded his services to include bookkeeping in April. Exciting plans await, with payroll, CFO services, and debt collection to be offered from July 2023.
Could you introduce Atomic Accounting to our readers in a few words? What does it stand for, what are you doing?
"We are an accounting firm that wants to make sure that every client feels important by showing that we care about them and their business, no matter how big or small. We currently offer taxation, business advisory, and bookkeeping services to our clients and are planning to expand our offerings to include Self-Managed Superannuation Funds and CFO services. We founded Atomic Accounting in July 2018, and I am operating the business with my business partner, Bob Cherney. Before Atomic Accounting, we had a small bookkeeping firm.At Atomic Accounting, our main focus is on providing an exceptional client experience. We understand that many businesses in the Australian market feel like they are just a number in the system, which is why we strive to make sure our clients never feel that way. We want to be there as our clients’ first contact and guide them through every step of their business journey. We have found that this approach works really well for our clients, both old and new. They also appreciate the fact that they don't have to worry about doing their own books, something that many business owners don't enjoy. We take care of everything related to data management, including following up on overdue accounts. We also have regular quarterly catch-ups with them to review their expenses and focus on areas where we can help them save money and grow their business."
Could you fill me in why Atomic joined WAGBA, and how long has it been since then?
"I have been a WAGBA member for about 4 years and for the last 3 years I am the Treasurer of the association. I joined via my old employer, Nexia Perth, and later moved on to Carbon Group. Last year, Carbon Group decided to no longer be part of the WAGBA community. Due to that, we decided it was time for Atomic Accounting to officially join WAGBA as a bronze member."
What was the deciding factor for the company to join?
"When I was working at Nexia, we actively looked for networking opportunities and ways to connect with German business groups. At that time, there were only a couple of German communities available, such as Rhein-Donau Club and Treffpunkt. As we wanted to become part of a larger German business association and tap into a wider network of professionals it was obvious and a great opportunity to join WAGBA.
On a personal level, I think it is essential to stay in touch with my German roots, and being a member of a German business association helps immensely with that. Contributing to a not-for-profit at the same time is a rewarding benefit. So of course, Atomic Accounting had to be part of this fantastic business group, and since then, I’ve been happily stuck as the treasurer of WAGBA!"
How has your membership impacted the way the company conducts its business in WA?
"As we are still a relatively new business the impact has been limited so far. The goal, of course, is to hopefully support more WAGBA members in the future. Our main focus is on taxation but we recognised the value of expanding our services to include bookkeeping as well. Our German background helps us explain complex Australian tax matters via German terms, and this simplifies the understanding for Germans who are in the process of opening their own Australian-based business and facilitates smoother transitions. It is definitely a unique selling point for us, and we strive to cater to those clients who have a preference for conducting their financial affairs in their native language. It’s important to note that the German market here in WA is relatively small compared to the broader Australian market. So while we do have a focus on German businesses, we also serve a wide range of clients from various backgrounds and industries.
Overall, the feedback that we received since we joined has been fantastic, which encouraged me to focus most of my attention on Atomic Accounting since the beginning of January 2023. It was for sure a scary step to leave my full-time position and to focus on my own business."
Speaking of small/medium German enterprises, what are some of the main challenges that they would face when starting up in Australia, and how does Atomic Accounting help with those challenges?
"When small/medium German enterprises start up in Australia, the language barrier is often the main challenge they encounter. It’s difficult to understand different terms and concepts, especially when it comes to Australian tax laws, GST, and varying rates. Atomic Accounting plays a crucial role in helping businesses navigate these challenges. We provide expertise in areas such as superannuation, explaining the differences between Australian and German systems. We also assist with understanding the various options for operating a business. This might be via trusts, partnerships or companies and we highlight the pros and cons of each structure. Additionally, we guide businesses through the complexities of Australian tax law as it can be sometimes difficual to understand as some legislation was written back in 1936. Our aim is to provide clarity and support to German enterprises during their journey in Australia."
Previous member profiles have been on Schaeffler and H&B, both of which are manufacturing businesses. Both with roots in Germany, and both serving somewhat similar industries. As a business providing financial services and based in Australia instead, what would you say is the biggest difference in the way you conduct business within WAGBA, be it networking or other aspects?
"The smaller company background has its challenges. Not many people would know Atomic Accounting, and our biggest challenge is to slowly change that. While Schaeffler and H&B are both manufacturing businesses deeply involved in the mining sector, where they generate the majority of their revenue, our focus lies in offering accounting and financial services. Additionally, we provide comprehensive accounting solutions tailored to our clients' specific needs and extend our services to a diverse range of clients from various sectors. Our goal is to become an integral part of our clients' success stories by assisting them at every step of their business journey.
Naturally, we believe that each of our businesses plays a crucial role within WAGBA. We all contribute to the growth and networking of German-Australian businesses in our unique ways, ultimately strengthening the overall German business presence in WA."
"Our goal is to become an integral part of our clients' success stories by assisting them at every step of their business journey."
Without disclosing anything confidential, were there any specific challenges or what are the key milestones you encountered as the treasurer of WAGBA?
"WAGBA is always evolving and we are trying to adapt to new challenges along the way. Elke Kirsch has been a very important part of my support system, being the treasurer, and it will be a big challenge after she steped down from her current role. That said, with every challenge comes new opportunities, so my plan is to automate our bookkeeping system as much as possible to be able to focus on other more important areas in the future. This will also make it much easier for future executive assistants."
As a WAGBA member for 4 years, where do you see the relationship with WAGBA going and is there any aspect of this membership you would like to improve on in the future?
"As we look ahead, I see a promising future for our relationship with WAGBA. I believe that there are bigger growing opportunities for WAGBA to expand its reach and make meaningful connections, especially in bridging the gap between smaller businesses. Currently, it feels like the more focus is on the bigger players within the association. However, I strongly believe that there is tremendous potential in getting our small members more involved and engaged. It is essential to ensure that every member, regardless of their size or industry, feels the benefits of being part of WAGBA. By creating an environment that fosters connections among smaller businesses, we can bring new viewpoints, share experiences, and hopefully increase member engagement as well.
Right now, I believe it would be beneficial to seek out more 'young blood' to join WAGBA. While the association has valuable experience from its current members, injecting new perspectives and fresh energy from younger generations and businesses can bring a new dynamic and forward-thinking element to the community.
Ultimately, the goal is to create a vibrant and inclusive environment within WAGBA. By actively connecting smaller businesses and attracting new members, with the help from our bigger members as well, we can enhance the overall value and relevance of the association. We can work together to make WAGBA a thriving community for German-Australian businesses, embracing both experienced professionals and the enthusiasm of the younger generation."
"While the association has valuable experience from its current members, injecting new perspectives and fresh energy from younger generations and businesses can bring a new dynamic and forward-thinking element to the community."
Finally, what advice would you give to other small businesses looking to get involved with business associations like WAGBA?
"Embrace the unique circumstances that arise when seeking connections with other German businesses here in WA, as the German business community has a strong inclination to support one another. There is one very interesting phenomenon that you'd sometimes observe among Germans who, once they go overseas, tend to distance themselves from their fellow Germans and German roots. However, as they mature, they often develop a renewed interest in reconnecting with their heritage and seeking opportunities to join business associations like WAGBA. Recognizing this pattern can help small businesses understand the timing and potential receptiveness of German entrepreneurs to engage with the German business community.
My advice to small businesses looking to get involved with business associations like WAGBA is to embrace connecting, or reconnecting, with other German businesses, actively engage within the association, seek guidance from experienced members, and be patient in building relationships."
