By Garry Johnston
National Manager Software Sales 

With 2022 well and truly in the rear-view mirror, it's a great time for pause and reflection over what has happened in the past year and what might be in store for the months ahead – what can we do better?

2022 felt like a heavy fog after the previous years of lockdowns, RAT tests, daily press conferences and social distancing. We kind of stumbled our way through the year until it ultimately petered out over a very quiet Christmas period. I, for one, am looking forward to a return to the new normal in 2023! 

The overarching theme as we enter the new year is the rising cost of living. It has become difficult to keep up with the increasing prices of everyday items like bread, milk and fuel, alongside the impeding pressure on mortgages caused by record-breaking interest rates.  

I am, however, routinely reminded by my wife that I need to change my perspective and think, what can we do better?  

This also rings true for our professional lives so, as we motor towards February and May lodgment deadlines, take stock of your current systems and processes. Are you getting everything you want out of your SMSF software? 

Here are a few key points that can help you audit your current platform and see, "what you can do better?"

Cost

Are you overpaying for your SMSF software? Could you be achieving the same, if not better, with a more affordable provider? 

It’s critical to assess your firm’s cost-to-serve to ensure you are turning a profit for the SMSF and portfolio services you provide. It could be a silent loss leader! 

Meanwhile, your clients driven by cost are likely running a similar pricing assessment to ensure they’re paying a competitive price. 

This is an area I would highly recommend analysing. Gone are the days of routinely raising prices by CPI or a standardised percentage without clients raising questions. Understanding your fees and profitability on a per-client basis gives you the scope to make it better. 

A great leader once told me, if you aren’t changing - you are giving your competition a free hit.

Efficiency

Efficiency is intrinsically linked to cost. For example - if Software A is $100 but takes double the time to use compared to Software B at $150 then the smart money would be on Software B.

So you need to consider both the license cost and the software’s impact on your efficiency. Cheap software that makes you less efficient can become expensive. Expensive software that isn’t efficient for your business amplifies this even further! Don’t assume the most expensive software is the best for your practice.

I understand, it is not clear cut, but it pays to do this analysis. As a business, I encourage you to continuously monitor cost versus efficiency and look to see where improvements can be made. The solution might be as simple as minor process tweaks, staffing, third-party intermediaries or even the software itself. All options should be on the table and I suggest that this is reviewed at least annually.

At our core, we as SMSF professionals and accountants, are in the business of customer service so we need to ensure we are efficient enough to handle their demands.

Data Feeds and Automation

I have been driving the hype train of automation forever. It makes things so much easier, drives good practice, and efficiency and also promotes critical thinking. It minimizes manual processing (work that kept me in a job as a graduate) and uncovers new revenue sources so you can progress as a proactive, client lead business.

Use data feeds religiously to, not only ensure your client's data is the most up-to-date but, get the most out of your SMSF software fees and use it to its full potential. Drive better efficiencies through data feeds and perhaps update your annual process to include a data feed review. 

Can’t get a certain data feed? Ensure your software has an intuitive bank statement reader that can automatically extract transaction details. 

We’re forecasting a rise in open banking this year which is an important development in the automation of SMSFs and our team is excited to share some big announcements on this in the coming months. 

So, what next?

If you’re taking stock this new year and want to set your firm up for success in 2023, congratulations. This is the first step in ensuring you’re doing better this year. 

The results of your internal audit should tell you whether you’re paying a competitive price, creating greater efficiencies and maximizing the use of automation available.

Try SuperMate

SuperMate is an SMSF and portfolio management software that is revolutionizing point-to-point efficiency. It’s fast. And I am not talking run-of-the-mill fast… it’s lightning fast. 

So, in the game of getting things done quickly and efficiently, SuperMate helps you proactively service your clients. See SuperMate in action here.

It continues to evolve with new features added regularly. 

If you would like more information on any of these issues, or if I can help you assess your cost to serve, I would be happy to have a conversation! Contact me at garry.johnston@superconcepts.com.au.

Until next time.