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
- 26 Sep 2017ATO set to add new items to SMSF watch listBy Katarina Taurian
- 26 Sep 2017ATO tipped to scrutinise property development and unit trustsBy Jotham Lian
- 26 Sep 2017Statistics reveal full impact of events-based reportingBy Staff Reporter
- 26 Sep 2017Tax advice exemption discrepancy driving away accountantsBy Jotham Lian
- 26 Sep 2017Consultant flags strategies to negate complex ECPI calculationsBy Miranda Brownlee
- 25 Sep 2017Survey results point to major concerns with new reportingBy Miranda Brownlee
- view all
- ATO tipped to scrutinise property development and unit trusts
One big four accounting firm says the ATO has started to zoom in on property development in unit trusts being held in SMSFs and the calculat...read more
- Statistics reveal full impact of events-based reporting
Analysis conducted by SMSF software provider BGL Corporate Solutions has indicated that around 290,000 SMSFs will be affected by the events-...read more
- Tax advice exemption discrepancy driving away accountants
A discrepancy in ASIC’s treatment of licensed and unlicensed accountants in relation to the tax advice exemption instrument is driving acc...read more
- view all