Almost a third of accountants and administrators are considering moving their portfolio administration to a cloud software solution within the next 12 months, to cut the time spent administering SMSFs and to boost their business growth.
The Class Digital Trends Survey found 30% of respondents who were not using cloud software for portfolio administration said they were considering moving to the cloud within 12 months and 60% within the next three years. The most common reason cited was to reduce the time and cost spent administering SMSFs, although a substantial proportion, one quarter, said their primary reason for moving to the cloud was to achieve scalable growth in their SMSF business.
The survey aimed to understand the increasing shift towards cloud-based SMSF administration software and trust accounting solutions. As regulatory and reporting obligations intensify, accountants and administrators are moving away from traditional methods to embrace digital tools that enhance efficiency and ensure corporate compliance.
The survey was conducted during the fourth quarter of 2016 by telephone and email.
Non-SMSF portfolios further behind in cloud adoption
The survey revealed that managing non-SMSF portfolios, including company trusts and corporate trusts, remains largely manual for many accountants, lagging in cloud adoption compared to SMSF administration. While just 11% used manual methods like Excel to administer their clients’ SMSFs, a much larger 34% administered their non-SMSF portfolios manually.
Some administrators rely on generic accounting software for trust administration; however, these tools often lack specialised features for beneficiary accounting, income distribution, and tax implications, leading to increased manual workload. Additionally, such software often falls short in meeting the reporting obligations required for trusts, a critical aspect as the ATO intensifies its focus on these structures.
