Class has recorded strong growth in recent years, adding approximately 30,000 portfolios in 2015, the majority of which are SMSFs.
However, an ongoing “limiting factor” is the rate at which accountants are transitioning to cloud-based systems.
“Accountants are always busy, they have their head down, doing what they did last year. Finding time to embrace change, finding time to look at new systems and put new things in place is hard for them to do,” Class chief executive Kevin Bungard told SMSF Adviser.
Citing research from Investment Trends, Mr Bungard said accountants’ intentions to migrate to cloud have been steadily increasing since 2013, while actual migration has been slow.
“What that means for us is that unless something dramatic happens, unless there’s some sort of legislative requirement or some other trigger, we think it’s going to take quite a number of years for accountants to move across to the cloud,” he said.
Mr Bungard also believes that a reduction in investment across the board in desktop software may also force accountants to consider integrating cloud-based services into their practices.
I don’t believe accountants are necessarily slow to consider cloud based software, but more the underlying issues that need to be addressed. These issues include the risk that data will not be available when Internet access is not available, the ability to access data when a contact with the software provider ceases and most importantly the security of their client’s data. While Australia now has excellent privacy legislation in relation to client data, that legislation is all but useless when data is stored overseas. Cloud based software providers must ensure users are aware of where data is to be stored. I believe they will gain greater support where the data storage is located in Australia. Personally, I use 2 cloud based software systems, both with data storage located in Australia. I see this as a major selling point and those companies that choose off-shore data storage facilities will eventually suffer.
I think the cloud software suppliers need to take a hard look at their pricing! Using desktop software our outlay is approximately $2,000 pa. Going to the cloud we can expect to pay up to $8,000 pa. And for nothing different. Sure cloud is a good alternative to desktop programs, however, is it any more beneficial to the accountant? No, it helps clients get more involved, but do we really want them having access to anything other than reports. Absolutely not.
Shocking charging through the nose for cloud based smsf solutions and then complain that accountants are slow to adopt.