Any accountant or financial adviser working in the SMSF space would have experienced downward pressure on SMSF profits over the last 5 years.
Increased complexity and compliance requirements have led to a blow out of SMSF administration time, and it can be difficult to explain to a client that a fee increase to cover the extra work is required.
Now, the latest research from Investment Trends reports that 47% of accountants expect to see an increase in SMSF revenue in the next 3 years and equate to 33% of their total practice revenue.
Increased revenue is welcome news for most, but it also raises questions for time poor accountants of how they’ll maintain SMSF profitability AND high levels of client satisfaction.
We explore two proven strategies to satisfy both your clients and your bottom line…
- Automate the manual
Many accounting firms use specialised SMSF technology to streamline repetitive SMSF administration tasks.
This technology can be a game changer in terms of automation, data fees and integration with other accounting software used in your firm.
There is no doubt an investment in technology will save you hours of time per year and create time savings that improve your bottom line.
- Reduce your ‘cost per serve’
While technology is great, there are still time-consuming preparation and compliance tasks that can’t be managed by software – and this is when being able to delegate the right tasks to the right resources plays a crucial role in your profit margins.
When the experienced members of your team are spending time on SMSF ‘grunt work’, your profit margins suffer. However, you also can’t afford to delegate complex SMSF administration to unqualified and inexperienced team members.
This is where outsourced SMSF Administrators start to demonstrate their true value. Partnering with a reputable outsourcing firm enables you to reduce your average ‘cost per serve’ for SMSF client services by a minimum of 50%. It also frees up your senior staff to focus on higher value activities.
Super Records typically charge $450 per fund per year for highly experienced and fully qualified SMSF administrators who conduct all SMSF administration on your behalf and provide you with final reports for sign off.
As the saying goes ‘time is money’ and the very nature of accounting means you and your team will be juggling multiple tasks on any given day.
Ultimately, if you can’t create time savings in your firm and be able to delegate the right tasks to the right resources, it’s going to be difficult to increase your profit margins.
With an increase in SMSF revenue predicted, now is the perfect time to take advantage of the conditions and set yourself up to maximise profits within your firm.