The difficulties in attracting staff to the accounting profession and particularly auditing SMSFs is concerning. More than half the registered SMSF auditors are over 60 years old and expected to retire in the next 5 to 10 years. We continue to see sustained and significant increases in the number of SMSFs being established. Both of these factors are expected to have far-reaching impacts on the industry.
The regulators indicate that around 2/3rds of SMSF auditors each complete no more than 50 fund audits annually with most auditing less than 5 funds. At the top end, around 10% of auditors each undertake more than 250 fund audits which is about 70% of all the funds being audited. The trend is that there is a decline in the total number of SMSF auditors and a move towards a greater number of funds being audited by the top end. Who is going to tackle the growing number of SMSF funds when the number of industry specialists is declining?
The opportunity
The challenge facing the auditing and accounting professions is attracting talent who are willing to learn the essential skills in operating and developing an SMSF audit business. These include understanding the technical issues, compliance and adapting to changes in technology. Whether there are sufficient newly qualified accountants interested in auditing SMSFs who are willing to pursue further study to become registered may be the hurdle. Current audit education on SMSFs is limited.
Anyone who has a long-term view in shaping the future of the industry should be preparing for the expected changes in demographics and the skills required to grow a successful SMSF audit business.
Cloudoffis are well positioned to help auditors address these challenges by offering solutions that tackle both the talent attraction issue and the evolving technological demands of the profession.
By automating time-consuming tasks, Cloudoffis’ practice tools enhance efficiency and appeal to younger auditors, enabling new employees to quickly adopt processes, integrate, and start adding commercial value to the business. Technology simplifies onboarding and allows staff to spend less time on administrative duties and more on revenue-generating activities.
Additionally, by providing tools that simplify compliance and technical issues, Cloudoffis reduces the complexity of audits, allowing firms to manage more funds with fewer resources.
At the other end of the business journey, for retiring business owners, embracing technology before selling their practice can significantly boost its appeal and value. Adopting software like Cloudoffis not only makes practices more attractive to younger accountants and auditors, who are generally more comfortable with technology, but also prepares businesses for future regulatory changes, making them a more secure investment for potential buyers.
A tech-savvy practice also streamlines the transition of ownership, making acquisitions smoother and reducing post-purchase problems. New owners will appreciate not having to overhaul outdated systems, allowing them to focus on growth and innovation. By integrating modern technology, retiring auditors can enhance their practice’s marketability and ensure a seamless handover.
In a rapidly changing landscape, adopting technology like Cloudoffis empowers both new auditors and those nearing retirement to thrive, securing the future of their practices and attracting the next generation of talent.