95% of SMSF professionals using Class Super could find time savings from the automated processing of tax statements.
Class estimates that 95% of the clients using its software, and 34% of the SMSFs, will directly benefit from the Tax Statement Automation feature.
Class launched its Tax Statement Automation feature earlier in 2019, with “aggregated underlying tax statement data for a large percentage of directly held securities”.
“More than 58,000 SMSFs on Class require tax statement processing. On average, our Tax Statement Automation is being applied to 3.3 holdings per fund, each with its own set of tax statements. For a Class client with 100 SMSFs this would typically amount to 113 holdings,” said Class.
“Without Tax Statement Automation, many hours would be wasted manually sourcing, keying and reconciling data.”
“Early users of the solution are reporting average savings of up to 30 minutes per fund and up to 10 minutes per tax statement.”
Class said that SMSF professionals have faced “unprecedented challenges” in recent years.
“Remaining compliant has become more time consuming that ever before and pressure on pricing has intensified as low-cost administrators drive down fees.”
“The industry has long recognised the process of manually compiling tax statement data was a highly demanding, time consuming task. Given the poor availability of data, administrators often had to source statements from issuers of underlying securities or from wrap platforms and investment brokers. Waiting for providers to issue statements, keying in data and then reconciling those numbers regularly caused delays in lodging returns.”
“Frustrated accountants, advisers and trustees are increasingly turning to smart automation to address the biggest challenges accountants have to overcome including time spent on compliance and downward pressure on pricing admin fees.”
Class chief executive Andrew Russell said features like Tax Statement Automation are enabling SMSF professionals to reduce costs, increase efficiencies and enhance profitability.
It is not only professionals looking for efficiencies, but also SMSF trustees. Class pointed to the findings of a ASIC survey, which indicated 38% of SMSF members found running their fund to be more time consuming than expected. The survey also found that 15% of SMSF members found their fund less time consuming than they expected.