Accountants need to look at low-cost solutions
Accountants moving into the self-managed superannuation fund (SMSF) advice space will need to think about fee structures and the value they can offer as SMSF services face downward pressure on pricing, according to Aaron Dunn.
The managing director of the SMSF Academy said this was vital at a time when providers were looking at low-cost solutions through the use of technology.
"We're likely to see a real contraction in pricing, as low-cost providers ramp up their use of technology so they can deliver wholesale-priced SMSF services," Dunn said in a Count Financial blog.
"Accountants need to show a distinction between core compliance work, which the client will expect anyway, and more strategic advisory services."
Dunn also suggested that accountants should think about moving away from conventional time-based pricing to a value-based fee structure.
Accountants should also invest in technology to bring about efficiencies in processes, with Dunn noting that those transitioning to cloud-based technology were becoming 40 per cent more efficient within three years.
Furthermore, over 60 per cent of new SMSFs were being established by around 10 per cent of SMSF practitioners, with many firms incorporating administrative platforms to automate processes.
"Going forward, it will be critical for accountants to be able to articulate the value of what they do. That might also include taking a more hands-on approach to client engagement."
Accountants would also have to ensure they had adequate resources to support their SMSF services in proportion to the size of their firms, and this may involve creating new positions.
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