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As consumers, we are innately aware of the art of upselling and the financial services industry is not immune to the frills that come with commerce.
So, is SMSF software really that important for your firm?
Grow your accounting firm the right way
02 December 2022
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6 minute read
Should you use specialised SMSF software for the administration of your firms SMSFs? YES!
ATO’s statistics show there are now over 600,000 Self-Managed Superannuation Funds in Australia. Whilst the majority of these are being administrated on specialist SMSF software there are approximately 85,000 SMSFs still using spreadsheets or non-specialist software.
This may raise the question -
“Do you need to use specialised accounting software for the administration of SMSFs?”
The answer is technical ‘no’ - it’s not mandatory, however, firms will find there are significant benefits to using SMSF administration software to help service their clients.
Here are just a few of the reasons I will always recommend specialist SMSF software.
SuperStream
While specialised SMSF software is not required for SuperStream, it does speed up the processing of messages and reduce the risk of human errors. SuperStream requires an electronic service address (ESA) from an SMSF messaging provider.
By using SMSF software which is also an SMSF messaging provider, contributions can be processed automatically, member withdrawal transactions can be processed at the same time as responding to release authority messages and data can be extracted from a single source when responding to rollover messages. Essentially, using your software for SuperStream purposes will reduce the manual processing of data, removes the risk associated with double entry of data and allows you to have a single source of truth for SuperStream. Furthermore, specialised SMSF software will calculate the member components for rollovers, which means no more spreadsheets to manually calculate the member components.
Some software, including SuperMate, provide an electronic service address (ESA) for free. This avoids the need for multiple subscriptions, saving you money, and ensures SuperStream is handled by a single software.
Tracking contributions
We’ve all received that phone call, from a trustee or adviser, in the last week of June asking how many contributions can be made for the year. Prior to recent legislative changes, the answer was quite simple however, we are no longer dealing with simple contribution caps.
There are unused concessional contributions that may be carried forward, the ability to bring forward non-concessional contributions and changes to work test requirements which are subsequently impacted by a member’s prior year's total superannuation balance.
Specialised SMSF software simplifies the tracking of contributions and individual members’ caps.
SuperMate even allows for the entry of the prior year's superannuation balances of external superannuation funds and any contributions made to these external superannuation funds. So, the next time you receive this last-minute call, you can confidently provide accurate contribution details.
Regular processing
Due to recent superannuation changes, up-to-date superannuation accounts have never been more important. SuperStream messages need to be actioned within 3 days and, from next financial year, transfer balance account events will need to be reported quarterly. Let’s not forget trustees’ growing need for information at their fingertips.
To enable these requirements to be satisfied, daily or monthly processing is becoming more popular.
As detailed below, specialised SMSF software utilises automation to assist in keeping a fund up to date. With an up-to-date fund, trustees can log into a portal to view contribution caps.
The tight 3-day deadline for SuperStream is much easier to achieve when data has already been entered. Imagine receiving a SuperStream rollover message, and then being able to confidently action the message instantly.
Reduced data entry
A key component of specialist SMSF software is automation. SuperMate provides automation through data feeds, Data Hero extracting transactions from bank statements, transaction rules, and identifying similar transactions to be processed in the same way, amongst other features.
Automation is also subtly embedded throughout the software. For example, prompting data feed establishment after entering bank account details or recording market values of certain assets when purchases are processed.
Reduced manual data entry leads to less processing time, and minimises human error which, in turn, means less time rectifying data issues. This saves on resourcing costs and frees up time to service clients, grow your client base and undertake important training. In other words, leaving you more time for higher value-adding tasks.
Technical training and support
Find a specialised SMSF software provider that offers ongoing technical SMSF training and support.
SuperMate users are backed by a team of industry experts who not only assist in keeping the software up-to-date and compliant but offer monthly webinars and training. Covering a range of topical issues and industry changes, these sessions provide valuable time for SuperMate users to ask our team of specialists questions.
If self-paced learning is your preference, SuperConcepts also offer access to a library of SMSF training courses and run in-person specialist SMSF courses. These can help you and your staff meet CPD requirements and stay abreast of important SMSF matters.
Make the switch today
Whilst opting for specialist SMSF software is another business expense, the benefits significantly outweigh the cost. There are many hidden costs associated with trying to administer SMSFs on spreadsheets or non-specialist software that often aren’t considered. With specialist software like SuperMate, your firm will operate more effectively, mitigate compliance risks and save on resourcing with advanced automation.
To learn more and switch to SuperMate today visit our website.
Author:
Rhys Hopper, Manager – Product Design
SuperConcepts
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