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Category: Industry Update

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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Unique technology to connect with CLASS / BGL & import data in seconds

At Cloudoffis, we are transforming the way SMSF audits are conducted. It is powered with Auditomation – a unique technology developed with the help of auditors for auditors. The sole purpose of Cloudoffis is to enable audit firms to be at the top of their game. With a truly comprehensive approach, the Cloudoffis platform ensures efficiency and improved accuracy the moment you start an audit.

Import data straight from external software

With the Automation technology in Cloudoffis, you can set up your audit files within seconds. Cloudoffis enables you to import data from softwares such as BGL or Class seamlessly and effortlessly. When we import the data we get all the data from

Auto-segregation of data

What’s more interesting is that Auditomation facilitates auto-segregation of the data. This means that all the fund details, client details and the financial data get saved to the right buckets automatically. By harnessing the power of Auditomation, this smart platform saves enormous amounts of time and ensures accuracy throughout the audit process. To find out how Cloudoffis can redefine the way you conduct SMSF audits, call us on 1300 9 7 9457 or to request a demo, click here.

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Cloudoffis is introducing a brand new way of conducting SMSF Audit

The Cloudoffis platform is developed with Auditomation – a unique technology developed with the help of auditors for auditors. Automation in Cloudoffis, not only automates SMSF audit process but also provides highly intuitive and intelligent tools to enhance auditors’ ability to conduct critical analysis and make judgments.

We believe that the perfect blend of auditors’ skills and software assisted automation together result in high-quality and error-free audits. Auditomation: “Audit process automation technology that truly enhances an auditor’s decision-making process.”

The power of Auditomation

With the Auditomation in Cloudoffis, you can easily import fund data from external softwares such as BGL or Class straight through the software. Cloudoffis intelligently saves every single detail and auto-segregates the data to the right buckets. By harnessing the power of the cloud, this smart platform offers auditors the accuracy they need in terms of fund details and documents. This unique technology analyzes the scope of the audit as soon as the data is imported. This means that the account is created based on what’s within the client’s data and only relevant checklists are populated based on the context. Not only that, the system automatically raises red flags for a number of issues such as negative or reverse balance entries, interbank entries, etc. This means that auditors no longer have to go through the dreadful task of sifting through months of bank statements or worry about missing an entry. Thus, auto red-flagging helps auditors reconcile issues quicker, saves a significant amount of effort and ensures error-proof auditing.

Collaborative

When an auditor has any queries or needs any documents from the client, he/she no longer has to waste time making calls or writing emails. The Cloudoffis platform offers collaborative features that allow auditors to connect with colleagues and clients in real time – saving a huge amount of time for everyone.

Comprehensive

The ability to connect to external data sources, conduct an audit in a single window from start to finish and even collaborate within the software offers a considerable reduction in the auditing time. Imagine the efficiency and productivity a practice can gain by freeing up so much of an auditor’s time.

An auditor’s judgment is crucial

The main objective of Cloudoffis is to simplify and speed up the audit process. The professional judgment and analytical skills acquired over the years by an auditor are irreplaceable. Cloudoffis is in fact freeing up an auditor’s invaluable time from tedious repetitive tasks, so they can focus on the more crucial aspects of the audit. At Cloudoffis, we believe that a combination of auditors’ skills and software-assisted automation together could result in high-quality and error-free audits. Plus, it also helps increase efficiency, productivity and hence the profitability of a practice.

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