Outsourcing SMSF admin grows in popularity
Outsourcing business processes for self-managed superannuation funds (SMSFs) is growing in popularity, but cutting costs is not the biggest motivator.
According to a survey conducted by Sundaram Business Services, which offers SMSF administration services itself, freeing up time and solving staffing issues are other major reasons why accountants and other businesses consider outsourcing SMSF back-office functions.
But labour arbitrage is not the only motivator, with most of Sundaram's clients retaining staff numbers, according to head of Asia Pacific Harish Rao.
"The motivation is usually being able to have a more flexible back office processing arrangement, one that is scalable to fluctuating business demands and offers faster turnaround times," Rao said.
"Attracting staff for the repetitive back-office functions can be problematic for firms, since professional accountants generally want to spend more time on client development and higher value-added work," Rao added.
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