Enhancements in technology will see SMSF administration services become disaggregated, allowing accountants to purchase individual services instead of suites of capabilities, according to one prominent SMSF administrator.
Speaking to SMSF Adviser, Heffron SMSF Solutions' Martin Heffron said SMSF administration services are, at the moment, a bundle of services – such as tax return lodgment, bookkeeping, consolidation and management of data feeds – wrapped up together and sold for one fee.
“I think technology gives you the ability to disaggregate those services,” said Mr Heffron.
“So you might have a small accountant on the corner that has clients who have SMSFs and rather than provide a holistic service, they might outsource bits and pieces rather than all of it.”
Mr Heffron said this will enable smaller accounting firms to decide what types of services they want and negotiate with a provider to get a data feed created or new data added to a data feed.
“So intermediaries who don’t want to be involved in providing the full suite of SMSF administration services will buy bits and pieces of it from other places,” he said.