Automation is likely to have a more significant impact in the SMSF space than any other part of the accounting profession, one leading technology consultant has warned.
David Smith, director of Smithink 2020, told SMSF Adviser’s sister publication AccountantsDaily that SMSF practitioners are likely to be affected by automation to a greater extent than others working in the financial services and accounting space.
This, according to Mr Smith, is because of the generic nature of SMSFs compared to other entities such as small businesses.
“One fund tends to look like the next so they’re all pretty similar, whereas when you get out into the business world, every business has its own nuisances and differences so it’s much harder to achieve the same level of automation.”
Mr Smith also predicted the SMSF space is likely to feel the effects of automation sooner than other sectors due to the systems already being developed by SMSF software providers, both in the admin and the audit space.
“There is probably more automation happening in self-managed super than in any other part of the profession. Because of that we can potentially see the impact there earlier than perhaps we will see it in other places,” he said.
Accordingly, Mr Smith urged SMSF professionals to prepare now in order to be ready for the inevitable automation, saying it often takes longer for practitioners to adjust to technological change than they anticipate.
“It takes time for clients to realise things can be done a different way, it takes time for firms to realise things can be done in a different way, it takes time for people to realise that pricing maybe has to change,” he said.
“A good example, for instance, is you can actually go out and get a self-managed super fund done for less than $1,000 yet the vast majority of clients and the vast majority of accounting firms are probably still paying north of $2,000.”
Now is the time to prepare for changes that will inevitably occur, according to Mr Smith.
“It’s better to be ready before the effect on their revenue actually becomes substantial,” he concluded.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all