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Category: Industry Update

Enhanced Security: A multi-factor authentication comes to Cloudoffis

Online security breaches happen every day, all around the world. It’s a fact of life, as we move things online and to the cloud, efficiency increases but so does the possibility of falling victim to fraud. Webber Insurance Services has compiled a list of Australian companies that have had data breaches in 2018 and 2019. They’re big names, close to home. When it comes to online security the best offense is a good defense. The Australian Taxation Office made changes to the Operational Framework for Digital Service Providers, making Multi-Factor Authentication (MFA) mandatory “where users potentially have access to large volumes of taxpayer or superannuation related information”.

Programs that digitally connect to the ATO, such as MYOB, Xero, BGL, Class, etc, had to meet these security standards by 30 September, 2018. MFA means that during the login process, after entering your username and password, you are also required to enter an additional code (or scan a QR code) that is sent via a preferred Authenticator App, SMS, or Email.

This security measure is not mandatory for Cloudoffis users, however, following the changes in the FinTech space, Cloudoffis has recognized MFA requirements as a best practice method. Moreover, because of the mandatory changes to our integration software application partners, like BGL, Class Super, and Supermate, Cloudoffis users will be required to complete an MFA when connecting to partner systems.

These added layers of security turn trust from something implicit, to something we carry out in our day-to-day operation of systems such as these. Cloudoffis, is part of a network of systems all committed to making SMSF compliance an efficient and enjoyable process for all parties involved. That said, we have a responsibility to each other to make sure every system feeding back into this network is as secure as possible. These added layers of security can incite groans and grumbles from users who say productivity will suffer, however, innovative solutions are available especially designed to combat this.

Platforms like Practice Protect, digitally secure accounting firms through one secure login to all cloud applications that can be tracked and restricted to specific locations, as well as applied firm-wide. Practice Protect has identified that “it is far easier to trick than hack”; 67% of data breaches in 2018 were due to human error or passwords being compromised. All in all, like Cloudoffis, every good platform will help you perform better and create capacity, but we’re happy to be further aligned now with the ethos of helping our industry users reduce risk, maintain control of operations and strengthen trust with clients – all whilst consistently providing greater efficiency.

It’s amazing in FinTech, when we all work together, the security and efficiency we can achieve for our users are phenomenal. To learn more about Cloudoffis and becoming efficient, whilst maintaining consistency, with your audit automation, reach out today using the form below.

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A Guide to Transfer Balance Account Reports for accountants & auditors

Auditors and accountants have to adapt to the new legislation on SMSF reporting. There have been significant changes in SMSF processing, and it’s crucial to keep up with them. In July 2018, a new framework for SMSFs was introduced which requires certain events to be reported to the Australian Taxation Office (ATO). Event-based reporting is a new obligation SMSFs need to fulfill. SMSF annual returns are still mandatory.

However, this new reporting style aims to capture information about other events as they occur. In certain cases, SMSFs have to file transfer balance account reports (or TBARs). There is now an increased need for real-time accounting. TBARs may need to be filed at any time during the financial year. Additionally, there’s a strict time limit on TBAR reporting.

Hence, the SMSF industry is going to have to make some fundamental changes. Accounting and auditing will have to become faster and more cost-efficient. In many cases, you’ll lodge within 28 days of the end of the quarter. Some TBARs need lodging sooner, whereas you only need to lodge others annually.

What about auditing? TBARs give auditors a new set of challenges. They’re still invaluable to the process, but the use of TBARs means they have to adapt to a new environment. Let’s overview the top facts about TBARs, as well as the ways that auditors will have to update their practices.

What Is a T BAR?

The ATO introduced TBARs to help them with a specific issue. Previously, the ATO had to wait for extended periods to receive data about how much people have allocated across the various phases in their superannuation funds. In some cases, they have to wait for almost 11 months to receive data about SMSFs. T BAR allows the ATO to track a member’s significant events and key transactions during the retirement phase. The ATO has applied a transfer balance cap of $1.6 million to this retirement phase.

TBARs allows you to track a transfer balance account to work out if there’s space for further activity. It also highlights if you’ve exceeded the cap through recent activity. TBARs allow the government to track large transfers. SMSF members now have their total superannuation balance monitored too. This is the sum of all their accumulation and retirement phase superannuation interests across all their accounts and funds. If it goes over $1 million, the SMSF has to lodge more frequently.

Which Events Require TBARs?

It’s crucial for accountants to keep track of each SMSF member’s transfers and superannuation balance. Accountants must report key events that alter an SMSF member’s transfer balance. Check the ATO’s guide here. A short summary follows:

  • The Type and Value of Pre-Existing Income Streams Details of pre-existing income streams being received on 30 June 2017 that will continue to be paid or will remain in the retirement phase on or after 1 July 2017. It’s not necessary to file a TBAR when the interest from an income stream has been exhausted.
  • The Type and Value of Death Benefit Income Streams and New Retirement Phase Income Streams Reversionary death benefit income streams should be filed starting from the date of death. Note that it’s not necessary to file a report upon the death of an SMSF member
  • New or Re-Financed Limited Recourse Borrowing Arrangement (LRBA) Payments ‘New’ refers to borrowing arrangements entered into on or after 1 July 2017 and the payment results in an increase in the value of the member’s interest that supports their retirement phase income stream.
  • Personal Injury Contributions
  • Commutations of Retirement Phase Income Streams that occur on or after 1 July 2017 or Compliance with a Commutation Authority

There are some exclusions to consider in the reporting too. For example, accountants don’t have to worry about filing a member’s APRA fund interests as the funds will report these. Information filed directly via a Transfer balance event notification form (NAT 74919) also doesn’t need to be included in the T BAR.

How Does TBAR’s Introduction Change the Compliance Process?

It was necessary to file all information about pre-existing streams by 1 July 2018. After this date, TBARs cover new events. If every SMSF member has a total superannuation balance lower than $1 million, the TBARs aren’t urgent. They can simply be filed once a year along with the Annual Return. But this changes if any member has a total superannuation balance of over $1 million. In this case, the SMSF has a new obligation. When an event occurs, they have to file a TBAR within 28 days after the end of the quarter. Events apply to all members, including members whose total superannuation balance is under $1 million. Let’s overview the main points.

  • The ATO will notify you in the event that you exceed the $1.6 million cap. It will ask you to rectify the event.
  • There is no legal limitation on the superannuation balance of SMSF members. But if anyone’s total superannuation balance goes over $1 million, a TBAR must be filed.
  • The ATO now has more insight into all SMSF income streams.
  • When you file depends on the fund’s composition and each member’s total super balance. As mentioned previously, you’ll often file within four weeks of an event. However, there are plenty of exceptions. For example, in the case of commutations, the SMSF may have only ten days after the end of the month to file a TBAR.

This is a new piece of legislation, so we may see changes made over time, particularly in regard to caps. For example, the $1 million superannuation criterion might be re-evaluated over time. Furthermore, the Treasury has a new proposal to change the audit cycle from one year to three years. If the measure passes, it will commence on 1 July 2019. However, the idea is still under much debate. Interestingly, this proposal sits at odds with the value and oversight that event-based reporting provides. With longer audit cycles, the ATO’s level of oversight would decrease. This might undo some of the positives that come with TBARs.

Your Responsibilities

When the July 2018 deadline came around, many SMSFs failed to comply with the new legislation. In most cases, the failure came from a muddled understanding of the rules. Some SMSF accountants didn’t understand the proper treatment of income streams under the new legislation. Some of the clients failed to comply with the transfer balance cap. This often happened because they failed to inform their accountant about their other super fund balances. People simply didn’t know which data was relevant. Since July, various SMSFs struggled with sending up-to-date TBARs. Many accountants had to get used to the new software in order to generate these reports and have had to change their practices to ensure data is up-to-date and accessible. As an auditor, ensuring you have a solid understanding of TBAR reporting is one of your responsibilities. This means you have to have clear oversight over all of your client’s income streams, other key events and any breaches of the transfer balance cap.

What Does This Change?

With these changes, the accounting and auditing process has to become more proactive and access to up-to-date data is imperative. SMSF professionals have more data to go over and processing frequency will need to increase. However, your main task lies in understanding the compliance and data requirements that will allow you to support the fund under this new framework. Many auditors hesitate to rely on data feeds. But if you find feeds that have a reliable source and structure, you won’t compromise the quality of your work. Data feeds can be secure and almost entirely error-free. At the same time, auditors will need to have a more active relationship with their clients. Being able to source reliable data and communicate regularly with clients can make it easier to keep on top of your requirements, identify areas of focus, and help to better support the SMSF with the new compliance regime.

The Final Word

TBARs whilst complex, have made a positive contribution to the industry in providing more visibility and transparency of key information. Clients and their SMSF professionals are still in an adjustment period. But the reporting process should soon become routine. It’s impossible to keep up with these changes without altering your process. Becoming well-versed in data feeds and understanding what online access to data and reporting you can receive is one of the ways that can assist Automation enables you to more easily and cost-effectively identify areas for focus. But there are many other ways to improve your processes. At Cloudoffis, we offer a variety of industry-specific innovations. To learn more, get in touch with us any time.

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Year of the audit “2019” – What you think on future of SMSF auditing?

Hey there,

What do you believe is the future of SMSF auditing?
At Cloudoffis, we hold out the promise of new experiences and challenge you to try them.
We believe SMSF workflows and current practices can be free from inaccurate and time-consuming paperwork.
We believe in a user-friendly experience that enhances collaboration and success.
We believe in business intelligence that enables flexibility without compromising power.
We believe in an integrated platform, but we don’t believe in silo-ed solutions that require referencing history.
At Cloudoffis, we provide automated cloud technology

that drastically reduces inefficiencies and empowers the SMSF auditing industry.
So I challenge you to leave the known for what could be, innovate with an adventurous spirit, and be a trailblazer with us.
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Anything that you wanted to know about Auditing Investments platform

Auditing an investment platform can present some challenges. Here, we tackle some of the biggest questions that you may have about this task.

There is a trend among modern investors to utilize investment platforms and the efficiencies offered. This gives out some interesting challenges to auditors and accountants. Each investment platform comes with its own set of features and reporting. You have to learn about these if you want to carry out audits with ease. Furthermore, you have to learn how to work within the confines of the platform itself and understand the tools available to you. Failure to do so could lead to a struggle to find the key information needed for the audit. Investment platforms aren’t something that you can avoid either.

The rise in popularity of managed accounts has led to more people using platforms to help manage their investments. They allow users to oversee their accounts and gain transparency. This helps to gain trust, and be consistent and believable for investors at all levels. What you may not realize is that investment platforms also offer tools to accountants and auditors.

This article refers to managed accounts and their relevance to investment platforms, what investment platforms offer for accountants and auditors, and if their data feeds are reliable or not.

What is a Managed Account?

Before getting started with anything else, the first step is to understand what Managed Accounts are. With a managed account, each investor has direct or beneficial ownership of the individual underlying investments. They then hire a professional manager to oversee the investment portfolio on their behalf. This is the key difference between managed accounts and managed funds. With a managed fund, the investor has a share of a pool of assets via issued units rather than direct or beneficial ownership of the underlying investments.

The individualized aspect of managed accounts is what has made them so popular. Using them allows the owner to tailor their investment strategy according to their own goals. They allow ease of portfolio management, which results in time savings. They also provide access to better transparency through professional management, as well as more comprehensive reporting. Often, an investment platform will be used to deliver or enable managed account services.   Investment platforms offer a good access point to managed accounts. This is because they offer a very efficient method of reporting on transactions and managing the investment.

Hence, as managed accounts gain popularity, so do investment platforms. There’s another important point to make here. You may have to audit more than one managed account when auditing the output from an investment platform. Managed accounts are only one type of investment that these platforms offer and clients can have numerous managed investments. Others include fixed interest, equities, and cash investments. Investment platforms also generally offer access to managed funds. There is an increasing trend toward using investment platforms that looks likely to continue. This means you’ll have to audit the outputs from more investment platforms more often as time goes on.

What does an Investment Platform Offer to an Auditor?

This trend toward investment platforms can seem like a scary proposition. While most auditors have worked with the outputs from platforms before, there’s an issue of complexity to consider. Managed accounts and other investment types make the auditing process more difficult. The good news is that many investment platforms offer an array of features. These features often benefit auditors and aim to make it easier for you to do your job. These features include the following:

  • Direct access to investment information for accountants and auditors:

For example, some investment platforms can offer you access to live reports. This gives you an up-to-date picture of your client’s finances and actions. These reports can often complement the end-of-year reports received and provide more detail. They cover every aspect of the transaction, in addition to that, they’re often automated. This cuts down the issues related to human errors.

  • Access to audit reports issued for the investment platform:

The issuing of these reports allows auditors to rely on the year-end data that the platform generates. The reports also offer greater transparency to auditors, clients, and advisors.

  • Access to data feeds if the platform supports them:

Many platform providers have introduced data feeds into their offerings that cover all investment types. These feeds provide greater automation of data entry and can provide greater transparency around the underlying transactions that the client undertakes.

Also, it is important to remember that each investment platform offers different features. These are only a couple of examples of what the platforms provide to accountants and auditors. Your client’s platform may not have all these features or it may have extra features that can provide you with even more help.

These differences affect your auditing approach. They call on you to learn about the specific features that a platform has to offer, but taking the time to do this usually leads to you saving a lot of time later on.

Can I Use Data Feeds?

The use of data feeds when auditing investment platforms is a contentious issue. On one hand, some platforms don’t yet have the required functionality. The use of feeds doesn’t come as standard across all platforms and the treatment of different investment types (particularly managed accounts), differs across the software consuming the feed. That does not mean you should automatically not use feeds. You just have to be aware of the source and any limitations, as you do with any feed that you use. But things have started to change. Investment platforms have started to evolve their feeds and many include tools that offer greater support to auditors and accountants who use the platform’s data.

Conclusion

Auditors must come to grips with the evolution of investment platforms. The popularity of managed accounts has led to more people using them. You need to adapt to the greater complexity of the investments that people oversee using these platforms. You also need to know about the new tools that they provide concerning accessing up-to-date data and providing online access to platform users. The key lies in understanding what these platforms have to offer. You have to take full advantage of the resources that the platforms provide. This may require some research on your part.

However, there’s a strong payoff. Accessing these tools can save you a lot of time during the auditing of accounts preparation process. Of course, using a good audit platform can speed up the auditing process further. That’s where Cloudoffis can help. Cloudoffis is an automated SMSF audit solution that allows for even greater efficiency. Arrange for a live demonstration with our team today. With Cloudoffis, you can make SMSF audits more efficient than ever before. Simply schedule your demo on the form below.

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Concerned that cloud-based software is less secure? It’s not the fact

Besides doing an accurate audit, security is probably your biggest worry. When you heard the rumours about the lack of security in cloud-based software to conduct your clients’ SMSF audits, you might have run for the hills. After all, a secure working and storage environment is key to ensure your clients’ trust. Although you’re tempted by how easy it is to work with and store data in the cloud, still-doubts linger. Are my clients’ data secure? Can I trust cloud-based systems to keep their data secure for the years to come? You need the facts–not half-truths whispered around the water cooler. Cloud-based software is not only as secure as a conventional IT system-it’s more secure. Here’s what you need to know:

Tight Control Doesn’t Mean High Security

Noted computer science professor David Linthicum wasn’t always a believer in cloud computing’s security. Although well aware of its power and scope for applications, he now is ‘finding that clouds are more secure than traditional systems, generally speaking’. The reason? Contrary to the myth, the truth is that where data is located isn’t as important as accessibility. In other words, in Linthicum’s words, ‘control does not mean security’. In fact, says Linthicum, traditional, on-premises IT systems average more Web application-based attacks than do service providers’ cloud-based systems, by a ratio of 61 to 28.

On-Premises Systems Bigger Targets for Security Threats

That’s a huge difference. Furthermore, Linthicum points out, the on-premises users had more “brute force attacks” than did the cloud-based users. Food for thought-especially since in our business-our data represents the net wealth of our clients. Like sharks when they smell blood, attackers bite when they smell money. Especially if they know they’ll have more than twice the chance of success when they know the accounting firm still uses an on-premises IT system. Again, Linthicum stresses, a firm’s preference for an on-premises system rests on a feeling; the false premise that control equals security. In fact, he points out, those companies who design cloud-based platforms “focus more on security and governance” than their old-school brethren.

The Key: A Cloud Solution that Takes Security Seriously

Instead, what a financial firm should concentrate on is to find a system with cutting-edge security technology and a proper strategy. Reducing the opportunities for an attack to breach the system should be the priority. A software firm that tests, tests, and tests again for vulnerability is the one companies who deal with the life’s savings of its clients should choose. In the 23 April 2017 edition of Forbes, Louis Columbus writes about Australians’ reluctance to hop on board with cloud solutions for fear of security breaches. Although Australia is the global leader in cloud adoption for public use, the Gulf Coast Council leads in private cloud use. Yet as cloud services increase their security for public, private, and hybrid platforms, more and more companies are coming around to take advantage of cloud services for even their most sensitive data.

Security Is Now the Competitive Edge for Cloud Providers

The question is, does your company really want to drag its heels on adopting cloud technology when it could take the lead? According to UK tech writer Ben Rossi, it is precisely the lack of confidence many enterprise companies have in the cloud that should spur them to take a second look. Because of this general reluctance of organisations to adopt cloud platforms, cloud services, says Rossi, have begun to ramp up their security to the point that they compete ‘on the security of their service’. Add that factor to the reality-not the myth-that most of the recent data breaches that have happened over the last few years occurred within on-premises IT systems. Cloud systems, too, have no personal connections-or axes to grind-with the companies they serve. As Rossi points out, ’employees with …malevolent intentions will find it more difficult’ to do damage with cloud-stored data. In most cases, Rossi says, cloud-based services must adhere to tougher standards than do on-premises systems, since cloud services handle the data for much more than just one organisation.

Choose Efficiency and Security with a World-Class Cloud Provider

The key, then, to take advantage of the lower cost and higher efficiency of the cloud while lessening your risk, is to choose your cloud provider wisely, conclude the authors of Internet security giant McAfee’s ground-breaking report, ‘Building Trust in a Cloudy Sky‘. Those Cloud First organisations who use unified or integrated security solutions have found it easier to adopt cloud services, since the heightened level of security from these security providers ‘reduce their response time to detect, protect, and correct threats to the organisation’s data’. Cloudoffis takes its clients’ security seriously. Not only does it host its servers on the highly secure Amazon Australia, but it also adheres to the highest industry standards of security implementation. To discover more about how you can boost your productivity while maintaining the highest level of security for your audit files, contact Cloudoffis today.

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Cloudoffis improve productivity of firm & is gold sponsor at ATSA 2017

Cloudoffis is a Gold sponsor of ATSA 2017 – one of the leading events for accountants & bookkeepers in practice.
Our values align with what ATSA organisers believe in – “It’s not the technology but what it can do for your firm and your clients that is key. Technology is the great enabler – enabling new efficiencies, new service opportunities, new ways to engage with your clients.”

Cloudoffis offers a brand new way of conducting SMSF audits. Developed with Auditomation, an advanced audit process automation technology, it truly enhances an auditor’s decision making process. We believe that this perfect blend of an auditor’s skills and software-assisted automation can result in high-quality and error-free audits.

At every step, auditomation enables simplicity, speed and efficiency to ensure accuracy and high quality SMSF audits.
Come to ATSA on October 16-17 (Hyatt Regency, Sydney) and ask us about how the unique auditomation technology in Cloudoffis can transform the SMSF audit process by helping you conduct error-free and high-quality audits and improving the productivity and profitability of your firm.

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SMSF Cyber Security: Measures to keep safe as we move in September

As a financial advisor, you need to know about the changes in the SMSF industry and how they will affect you. We’ve created a quick SMSF industry update, letting you know what is happening in the industry and how these changes may affect investment going forward.

Trustees Opt to Go It Alone Navigating Complex Rules

Earlier this year, Vanguard released a report which showed that one of the prime concerns among SMSF trustees in 2017 was navigating the complex and ever changing rules and regulations associated with the fund. Despite this, we are still seeing trustees opting to go it alone and figure out the best course of action themselves. Only 38% of SMSF trustees now seek assistance from a financial advisor, down from 54% nine years ago. Concern over the quality of advice and the spectre of bad experiences in the past have been cited as two of the major factors behind this, and the rise of accounting and auditing software platforms have also given trustees more scope and capability to take care of duties themselves.

Contributions Continue to Rise

SMSF investment is at a very healthy level in 2017 and looks to be continuing to rise as we move into September. The June quarter of this year saw enormous increases in trustee investment, with average contributions soaring from $9,138 to just over $32,000. This tripling in the average level of investment has been credited to the changing of SMSF rules at the beginning of July, which made it more advantageous for trustees to invest. The last time investment levels have been this healthy was back in 2009.

Increased Focus on Cyber Security

If cyber security has left the front pages in 2017, it has never been for very long. Recently, it reared its ugly head again, this time with the news that criminal gangs, particularly those based in Eastern Europe, have been targeting SMSFs in Australia. This should not be taken as a reason to panic, however. Cyber crime is the new frontier for law enforcement. New breaches simply mean new measures must be taken to keep us and our money safe. Expect a renewed focus on cyber security and tighter measures in place to keep SMSFs safe as we move into September. To learn more about Cloudoffis and how it can help you to keep on top of your SMSF auditing, get in touch with our team today. We are waiting to hear from you.

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11 Reasons to move your accounting firm on the cloud for high growth

Australian accounting firms will witness a sea change in the coming 5 to 10 years. Cloud-based services and automation tools will disrupt the business model. It is imperative for every accounting firm to invest in advanced cloud-based systems sooner rather than later. Studies show that cloud based firms add five times the amount of clients compared with traditional firms, and report the highest growth. With the rapidly changing business environment, cloud technology allows your accounting firm to reinvent your way of work, evolve quicker and differentiate your service offerings. Here are 11 reasons why:

Accuracy

Cloud-based applications connect to external software and reduce the possibility of errors involved in manual feeds.

Enhanced security

Cloud systems have robust security protocols. They have much deeper pockets for firewalls and highly sophisticated intrusion prevention systems in place.

Cost savings

When you take into account the hardware, utility, software license, maintenance, and productivity costs, cloud subscriptions turn out to be more affordable. This is especially true for accounting firms who work with small and medium businesses. They also save time and improve the overall productivity of your firm.

Collaboration

Cloud-based platforms allow you to invite clients on online platforms. Allowing online access to clients is now more imperative than ever before – especially when it comes to offering SMSF-related advice. If you don’t, they will soon move to a firm who will.

No more maintenance headaches

Updates in software and hardware are done automatically. This means your systems are always up to date, and there’s no downtime due to system related issues.

Scalability

Cloud systems allow you to expand and grow faster without increasing immediate technology costs. It allows to upscale or downscale your existing resources as per your business needs.

Efficiency

Cloud technology allows to concentrate on your core competencies while leaving the task of running IT infrastructure to the cloud service providers.

Real time financial management

With accurate real-time data at your fingertips, firms can share the golden nuggets of information with your clients. This allows you to become your clients preferred adviser and increase revenue.

Flexibility

Cloud systems give you the flexibility to access your files and data even when you are off-site or at home. You and your employees can have a virtual office wherever they go through web-enabled devices.

Added value

Moving to cloud-based technologies allows you to automate low-value tasks. This helps you add real value to your clients business and create a certain stickiness to the client-firm relationship.

Robust Data Management System

Cloud technology has in-built off-site data management. Since all the data is stored in the cloud, it’s easy to have a backup or restore it. This also means, you can access any of the audit or accounting documents whenever you need them.

The cloud is here to stay and early adopters will benefit significantly in the long run. In order to survive and succeed in an automated future, accounting firms need to go beyond a service-oriented approach and start acting as advisers for their clients by deploying cloud technologies.

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5 Emerging trends in SMSF industry in 2017 – Good time to take stock

With the substantial changes to superannuation rules in action since July 2017, it’s a good time to take stock of the emerging trends in the SMSF industry.

Trend #1 Catering to a unique population

The superannuation population now consists of a really interesting and challenging age mix. The Baby Boomers, Generation Y and the Millennials. An aging and increasingly diverse community along with the current technological advances are bound to reshape the superannuation sector. Super funds will increasingly tailor their offerings to this new reality.

The millennial investors are more digitally savvy and happy to embrace automated investment advice compared with aged investors (60+). Studies also show that millennial investors are strong adopters of mobile apps and cloud-based technologies.

Trend #2 The age of Automation

Yet another emerging trend is the advent of automated processes and tools. Like any another industry, automation is bringing in significant change and efficiency in the way SMSFs are managed. Cloud-based technologies are automating a variety of cumbersome day-to-day processes.

Live reporting and greater visibility offer better decision making for trustees. Automated audit platforms are revolutionizing the way in which SMSF audits are conducted. These tools are saving auditors a significant amount of time and helping create high quality audits. Automation ensures a high level of accuracy, improves client experience and allows firms to improve their scalability.

Trend #3 The need for events-based reporting

The ATO is asking firms to notify them of some events 28 days after the month in which they happened and to notify them of other things 10 days after the end of the month in which they occurred. Increased events-based reporting means firms will need to have automated processes in place. Surprisingly, in a recent poll on the SMSF Adviser, only 23% of the accounting firms said that they were ready for ATO’s events-based reporting requirements.

Trend #4 The swing towards managed funds

The investor market seems to have an appetite for managed funds. Studies show that investors tend to have more faith in managed funds, as they provide more stability and confidence in a volatile world. While SMSF trustees are interested in investing in a diverse portfolio of funds, they don’t have enough time to select and research their SMSF.

The new Super reforms from July 1st limit the role of accountants – they can no longer provide SMSF advice to their investors without obtaining a license. This means, Advisers specializing in Managed Funds will benefit significantly. The SMSF space will also see new licensing requirements for accountants who want to provide more holistic advice to their SMSF clients.

Trend #5 Greater innovations for the future

With increased life expectancy, trustees look for a better control over their financial future. They are on the lookout for innovative strategies for the future. Real-time tools that offer personalized interaction with members through portable devices; the ability to make instant decision making strategies on a personal level; and a clear forecast on the returns. Trustees are also interested in innovative strategies/tools that spread awareness and demand engagement from an early age.

Some of the examples being cradle-to-grave products. In the age of information revolution, smart phones, cloud-based technologies and social media, 2017 will look for newer ways to bring in efficiency in SMSF investments, administration and audit – not just in the face of regulation but to meet consumer expectations for the future.

References:
1. BNP Paribas article March 2015 ‘2025: What will the superannuation industry look like in a decade?
2. Top 10 trends in the Australian wealth management industry
3. Investment Trends Survey Highlights

Disclaimer: The content provided on this blog is for information only. Cloudoffis cannot be held responsible for any loss incurred as a result of using information on this blog. Persons accessing this information are strongly encouraged to obtain appropriate professional advice before making any investment or financial decision.

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How Cloudoffis raise red flag that needs close attention from auditors

Check out how Cloudoffis intuitively raises Red Flags for items that need closer attention. SMSF auditors play a key role in examining the accuracy of an individual fund’s accounting records. To achieve this, an auditor has to go through reams and reams of data to investigate if there’s been a breach on any financial or compliance issue. This can be a rather time-consuming and dreadful task. Cloudoffis introduces a brand new way of conducting SMSF audits. Powered by Auditomation technology, Cloudoffis offers auditors, accountants and audit firms intuitive and intelligent tools to conduct high quality SMSF audits.

Introducing Red Flags

Red flag is a powerful feature in Cloudoffis that’s built to speed up the audit process significantly. This advanced feature intuitively spots issues that need closer intervention and auto-generates red flags. The auditor simply needs to examine the red flagged items. He or she can then raise any points for internal review depending on their findings and take further action quickly and move on to other aspects of the audit. The Cloudoffis platform can auto-generate Red Flags for a number of items. Never miss out on

  • Negative Balance
  • Reverse Balance
  • Income Comparison
  • Pension Limit
  • Contribution Cap
  • Work Test
  • Market Value

With the Red flag feature, an auditor won’t have to look for the above items manually. This eliminates any chance of error in this area and increases overall efficiency. Thus ensuring errorfree and high-quality SMSF audits. To find out how Cloudoffis can redefine the way you conducted SMSF audits, call us on 1300 9 7 9457 or to request a demo, click here.

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