Tax accountants H&R Block has set up its H&R Block SMSF (self-managed super fund) Solutions division to spearhead its SMSF administration division beyond its existing client base.
The new division will look to acquire blocks of fees from smaller administrators in the accounting profession.
The firm aims to take advantage of the prediction that there will be a mass exodus of many accounting firms from the SMSF space, believing they can pick up plenty of that work.
H&R Block managing director, Brodie Dixon, said “we realised that the depth of knowledge and specificity of processes required for SMSF work meant that we needed a team of SMSF dedicated specialists to properly meet the increasing demands around SMSF’s, including the increasing compliance burden, complexity of administrator duties, and the risk of getting it wrong.”
“The increasing sophistication of IT systems means we can deliver greater transparency and control through a real time transaction feed for our clients, as well as online tools for analysis and investment,” Dixon said.
Dixon added that they days of the ‘part-time’ SMSF accounting doing 10-50 SMSFs alongside their business clients is coming to an end.
Head of the division, Kimberlee Brown, said one of their main aims will be to educate clients on the basics of what they can and cannot do.
“We will help people understand that SMSF’s are a different ‘beast’ and they can’t be ignorant to what they can and can’t do because once it’s done, it’s very hard to undo without consequences in terms of reporting to the ATO [ Australian Taxation Office], potential audit and additional tax and penalties,” she said.
The firm aims to build market share administering smaller funds, with balances greater than $200,000. They will offer administration services from the initial set up of the fund, preparation of financial statements and tax returns, pension establishments and consolidations, and assistance in meeting compliance obligations.
