Many SMSF firms have jumped into IT and technology upgrades but have not considered how they will integrate with existing systems or are failing to use them to their full potential, says one business consultant.
9rok Consulting's managing director, Kim Payne, told SMSF Adviser that advisers and accountants often acquire technology piece by piece rather than as part of an overall strategy.
“They don’t integrate technology effectively across the business so what they end up with is a whole lot of different tools or different pieces of technology that don’t speak to each other,” said Ms Payne.
This is particularly a problem where the firm is mixing IT software and systems with paper-based documents or spreadsheets.
Many practitioners also do not take the time to learn how to use new technology to its full capacity, she added.
“I look at the common IT systems for accounting and financial planners and most practitioners only use it to about 10 per cent of its capability,” she said.
“The use of technology can be one of the most incredible tools from an efficiency point of view, but so many advisers are just not getting those efficiency gains, [even though] they’ve got the latest technology in place.”
Part of the problem is that SMSF practices do not establish a strategy for IT and technology, as they would with other aspects of the business such as how to attract new clients.
“What they need to think about is why do they need it, what is it going to do, how is it going to enhance productivity and what tasks staff are currently doing that it’s going to replace,” she said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
20 Feb 2017Class launches consolidated portfolios toolBy Miranda Brownlee
20 Feb 2017ATO braces for errors as new reforms roll outBy Katarina Taurian
20 Feb 2017Count Financial reveals cost impact of licensing for firmsBy Miranda Brownlee
20 Feb 2017TPB braces for registration renewals for tax financial advisersBy Miranda Brownlee
17 Feb 2017ASIC targeting SMSF advice in major shadow shopping projectBy Miranda Brownlee
17 Feb 2017Class sees drop in small-scale SMSF firmsBy Staff Reporter
- view all
Count Financial reveals cost impact of licensing for firms
Recent estimates provided by Count Financial show that for many SMSF firms, compliance with the limited licence regime has cost them tens of...read more
TPB braces for registration renewals for tax financial advisers
The Tax Practitioners Board is urging tax financial advisers who registered with the TPB in 2014 to start preparing for the renewal of their...read more
- view all