Superannuation software company Mclowd has launched an accounting system for self-managed super funds (SMSF) that will be provided free of charge to users.
The new software application is based upon cloud computing technology and has been released to market in an effort to significantly change the administrative cost structure associated with running an SMSF.
“We’ve taken the economics of cloud computing and we’ve just applied it to SMSFs. It was always going to happen because of cloud computing and the process,” Mclowd managing director Ashley Porter said.
“Trustees are paying more than $1 billion per year in fees, including accounting and tax compliance. We want to see a large proportion of that money back in the balances of Australia’s 1,000,000 SMSF members, while at the same time making self-managed super a realistic alternative for people with lower balances.”
The software organisation has established its own advisory board to oversee the governance of the accounting platform.
This board is comprised of trustee representatives and other stakeholders and will be responsible for elements such as guidance on the security and development of the platform, advice on the resourcing requirements of the service, and liaising with the marketplace contractor community.
Mclowd has launched the system at no cost as it will be drawing upon crowd-sourcing capabilities to create an online financial services market for users in the future.
This market will allow Mclowd clients to access specialist services provided by practitioners including SMSF accountants, SMSF bookkeepers and SMSF data entry personnel.
“Crowd-sourcing is fundamentally changing the way work is performed … there are several existing services in the marketplace in the world; elance [.com], freelancer [.com.au], odesk [.com], and these marketplaces are growing gangbusters. Fifty-plus per cent per annum and when you increase the number by 50 per cent per annum it doubles every 18 months,” Porter said.
“We’ve just leveraged that model around the world.”
Mclowd will generate revenue through the facility, enabling users to source SMSF professionals around the world.
Porter said that would allow SMSF trustees to access the service they were looking for in the most cost-efficient manner and would also improve transparency in the sector as individuals would get a better understanding of what they could and should pay for a particular specialist service.
