As some of you may know, in addition to being a director of myprosperity, I’ve also been a passionate user of the software since 2015 when my adviser/accountant first introduced me to the platform. My enthusiasm for the potential of myprosperity, and its ability to help advisers work more effectively with their clients, is what drove me to contact the founder, Peter McCarthy. And I guess as they say in the classics, the rest is history.

So as an informed and regular user of the software I take notice of the improvements that have been made over time to the client portal. Last Sunday, I spent a good chunk of the afternoon updating everything in my portal to ensure my adviser had all the latest information on my financial position. Going through this exercise prompted me to note down some of the cool feature improvements that have been made by the development team over recent months. It also made me wonder whether many of our partners and their clients have also noticed the same improvements that I have.

So I thought I would highlight my top 6 most improved features in the software. Here they are…

1. Ability to record more detail on Wealth items
The ability to track information on wealth items has been improved and expanded. For items such as property, vehicles and shares, myprosperity has always used automated data feeds (as part of the Pro subscription) to track and record the latest value of these items. This is awesome as the system does all the work for you in keeping track of your financial position and in calculating your net worth. However for other investments that require manual tracking, such as private equity or a business entity, the information you could capture was generally quite limited. Basically the system only allowed you to enter an overall valuation of an investment without allowing a whole lot of other detail to be recorded. Well all that’s changed. As an example, with Private Equity investments, you can now enter a cost history for that investment and record specific valuation dates, which is ideal if you want to track the performance of such investments over time.

2. Historical valuation tracking
So that’s all fine moving forward, but what about retrospectively getting a better historical view on these types of investments? No problem. Myprosperty now gives you the option of uploading a CSV file with customisable historical performance data. There is a prefilled template that you can modify and upload against a particular item to show how that asset has performed over a specified period of time. Previously you were stuck with whatever information had been initially entered into the system and at times this might be incorrect and you had no way to fix it. I know that this has been a bug bear with some advisers where downward spikes in a clients wealth history might be erroneously and permanently recorded in the platform. Now you can make sure the system provides a truly accurate reflection of investment performance and showing the right trajectory, and that’s hopefully upwards.

3. Cash Flow and tax tagging
Whilst I’m not one of those clients that meticulously tracks every dollar spent to a strict budget, I do like to keep an eye on where my money is going and identifying where I can save a few dollars. The great thing about myprosperity’s “Cashflow” feature is that transactions from ALL your bank accounts are automatically loaded into the platform. In my situation, and demonstrate how powerful this can be, I’ll pinpoint one example. My family is a big user of Uber. We have 2 Uber accounts across 2 credit cards as well as being occasional customers of Uber Eats. Without myprosperity, if I wanted to work out how much I spend on Uber, that exercise would be bordering on a low level forensic accounting exercise. With myprosperity, by searching on the term “Uber” and interrogating all transactions, regardless of card or account, within seconds I was able to determine that this tax year alone we’ve spent $2,712 on that service. Note to self… this needs to change next FY!!!

On the issue of tagging transactions to an expense “category”, you may recall that the move to a new Yodlee (bank feed) API back in 2018 proved a challenging exercise but it seems all that pain was worth it. The accuracy of tagging to categories in myprosperity from what I can see is way more accurate, and the process of tagging vastly quicker. As an example I went through over 170 transactions in one particular expense category in just a few minutes. I actually timed it over that entire category and it consistently takes just 3 seconds to load 10 transactions so I was easily able to review and change over 100 transactions in a couple of minutes. I think it took me just under 2 hours to go through an entire financial year of transactions, including tagging to a category and mapping to specific tax tags that I had customised in the system. If you want your clients to find transactions for tax purposes that they would otherwise have to search receipts or banks statements for, this feature makes that task way easier.

4. Mobile app
I know this is not a new thing, but if you haven’t checked out the myprosperity mobile app for a while, you really should. Previous versions were busy and not representative of the type of leading mobile app design that you or your clients may be accustomed to with other leading tech brands. Last year, and I’ve forgotten the exact timing, but myprosperity launched a new look mobile app and it is a massive improvement. Screen layouts, font, icons, charts and the entire look and feel of the app is clean, crisp and frankly, beautiful. If you are on the road a lot, as most of us are, this myprosperity app is ideal for your clients to have their financial world at their fingertips. It’s even better for the adviser if you are signed up on the Mobile First agreement and have the app branded with your logo and colours. Again, worth checking out if you haven’t seen the app recently.

5. Comprehensive Cashflow Report
One of the advantages for advisers in using myprosperity is the ability to generate great financial reports for clients using up to date information directly from the myprosperity client portal. One of the reports that was added some time back was the Comprehensive Cashflow Report. The name actually doesn’t do justice to just how awesome this report is. It basically pulls together goals, cumulative expenditure, net (asset/liability) position, current year cash flow, budget Vs expenditure all into one report. My version of this report is actually 15 pages long and generated automatically from the system in a beautiful layout, branded with my advisers logo, and all done within seconds. Before myprosperity a report like this would take an adviser hours and hours to prepare and would simply not be worth the time and effort based on the return. This is such an incredibly valuable resource and I wonder how many advisers are actually using this with their clients.

6. Document storage
My final most improved feature is simply the document repository under “Docs”. The structure of this portal means you can access documents logically from the various folders. The “All Files” section is where all documents that you have uploaded into the portal can be accessed and where you can search for a specific document. By the way, this works great on the mobile app and is a real lifesaver if you are on the fly and need to get access to any document from the portal.

You have 4 master folders of “My Uploads”, “My Tax”, “My Advice” and “Other Docs” where specific documents can be stored against each of those categories. This is great for an adviser to proactively load tax documents from prior years so clients can simply go to the portal rather than hassling their adviser for a tax return lodged 3 years ago. It’s all there.

What I love is the ability to set up customised subfolders under “Other Docs” so it is easy to find stuff related to specific categories. I noted on Sunday that I now have just over 100 documents in the portal so if anything was to happen to me it’s all in one place, right down to source documentation and correspondence that might be vitally important in understanding the state of my finances. Best of all for advisers is that the Docs feature is available for Starter accounts, so that’s a free service to offer all clients.

So there you have it. My top 6 most improved features in myprosperity, and I haven’t even mentioned digital doc signing and form fill. Hopefully you are reading this and saying, “yeah, none of that is new… I knew about all that”. But, if you are reading this and not aware of some of the improvements I’ve highlighted in this blog then it’s probably time to go back and take a closer look at the platform and get your clients on board. They’ll thank you for it.

For Conrad Francis and Shane Mitchel of Inspired Money the fallout of COVID-19 has been business as usual. Shane even goes as far to say that this is an ideal period to be working with clients because they’re contactable and available to chat, always. 

Inspired Money and their team of 12 work mostly with accumulative clients and retirees. Individuals who still have the 2008 GFC fresh in their memory. “They’ve been through this with the GFC and we’ve been having conversations about markets running hot. We’ve had 10, 11 good plus years in a row so something was coming, we just didn’t realise it would be so severe.” said Shane when asked how he’s clients were coping with the fallout of COVID-19. Based on this they’ve been working with their clients with the expectation that the market was due for a shock, and that investments shouldn’t be too outlandish in their risk. 

They’ve also weathered the storm of working remotely seamlessly, as Conrad explains that their staff had been very much used to a working-from-home situation, and that they had been utilising digital workflows to service clients and communicate internally for quite some time. They had been utilising platforms like myprosperity’s wealth portal for cloud-based storage and digital document signing prior to the fallout of COVID-19, which made the transition home much easier for all of their staff.

The case study of Inspired Money is a great example of an advisory business that’s successfully navigating these challenging times. Not only have they been able to safeguard their clients’ wealth but they’ve been able to ensure their own business continuity, which in contrast to many Australian’s positions, is incredible.

You can watch the full episode below.

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1. This is all changing very quickly. Many Australians have found themselves in a very different financial situation with hundreds of thousands losing their jobs or being stood down. And while retail figures last month were inflated by panic buying, we’re expecting spending to fall as those stockpiling toilet paper and mince shut their wallets. It’s sparked some interesting questions around how to deal with personal finances, one which was covered by John Wasiliev in his AFR column this week. One reader asked how he can help his son who has found himself in a “remortgaging pickle” as a direct result of COVID-19. Specifically, the reader asked should he take money out of his SMSF – is it better to take it out of his account-based pension or his accumulation account? Wasiliev gives a detailed response going over the pros and cons of each here but notes the answer is one that has changed dramatically over the past few weeks with the market correction and the federal government’s announcement about the concessions for minimum pension withdrawal requirements. An example of just how quickly advisory is changing.   

2. Accessible, affordable advice. That’s the aim of H&R Block’s new initiative, rolling out digital advice for Australians seeking access to superannuation. We’ve covered this topic in the past two weeks including why it might not be the best idea to access super right now and how accountants are moving into advisory after ASIC replaced the rules for tax agents amid the coronavirus crisis. Perhaps more importantly, does this represent a slippery slope of non-AFSL holders moving into advice? Seems Covid-19 may loosen up aspects of the advice industry in the face of last years’ tightening under the Royal Commission. More here. 

3. Agile adaptation. With all of us practising social distancing, it highlights how much we’ve had to adapt to continue the human element of advice. As Ally Selby at the Financial Standard wrote this week, “the ability to connect with someone, empathise with him or her and marry this with a solution, has never been so important.” The adoption of technology is one-way advisors are staying connected with a survey of 177 advisors showing that one-third are making sure their businesses remain competitive and innovative during these times. More here. 

4. Digital or Die – that’s how Tahn Sharpe at Professional Planner described the move to embrace technology this week. “The technological tools and next-generation systems that advisers were gradually adopting have become essential now. Things like video conferencing, document sharing portals and scanning apps that were nice-to-have yesterday are the only way to service clients today.” More here.

5. This just got personal. myprosperity Founder Peter McCarthy published a blog this week detailing how the financial world of one of his mate Andy came crashing down around him as the COVID-19 crisis ramped up. He’s running a webinar next week on how business is now personal and what you can do to help your clients when they’re in crisis. You can sign up here.

Digital workflows and setting clients up online were focal points of discussion when Chris Ridd sat down with Matt Sharwood of Advise Accountants in episode five of the myprosperity @ home series. Directing an advice business with 10 staff is already a challenge in itself, but with the fallout of COVID-19 Matt has seen new challenges arise that are unique to the current situation we’re all facing.

Matt explains that the situation for the majority of his clients is one that’s quickly evolving. 70% have applied for JobKeeper and almost all of them are in a situation where things are evolving quickly. What Matt see’s happening now is the flow on effect being caused by businesses who have already been badly impacted by the market shock of COVID-19. Being a regional business he’s noticed that the construction sector is keeping things afloat for now, while the drop in tourism is yet to have had an impact. 

Something Matt’s doing with nearly all his clients is waste audits, eliminating any unnecessary expenses with his clients so that their businesses are tightened up. He’s also seeing a big shift in his clients who hadn’t taken their businesses online. “The online shift has been a savior for some of our clients as they open online stores through Shopify, they’re noticing their sales go up.”. He also notes that clients are optimising their customers journey for their online store which they’ve seen really positive results from.

One thing that’s been more seamless for Matt and his staff is the transition to working remotely from home. They’ve successfully figured out a rhythm of daily online meetings and are able to work directly with their clients through digital workflows. He’s also been trying to lead by example by ensuring he has a healthy mindset through exercise, as he and his team work around the clock to help navigate their clients through this challenging time.

You can watch the full episode below.

These are strange times indeed. Not in our wildest dreams did we ever think we’d find ourselves where we are now – no footy, no pubs, no school, no morning commute. Literally overnight every aspect of our lives has turned upside down. With all this extra time on our hands, we’ve had plenty of time to stop and think about what we need to do to minimize the financial and emotional fall-out. Now more than ever before, we need to work together to get through this chapter of our lives.

Business just got personal

My long-term mate Andy, who I caught up with this week, is one person whose business has been hit hard by the Covid-19 pandemic. We met by chance many years ago when our first-borns came into the world. We’ve been firm friends ever since, sharing the highs and lows of toddlers, teenagers, school formals and schoolies over the journey.

Andy is the quintessential great bloke who happens to run a very successful business. He’s the kind of guy who celebrates not only his own successes, but revels in the success of those around him. With his easy-going nature and infectious laugh, Andy is a magnetic personality. He jokes that he isn’t the smartest guy going around but he is a bloody good judge of character. Yep, I’m the first to agree with him on that.

Andy is smart because he knows he’s good at what he does but not silly enough to think he knows everything about running a business. He knows that he needs to rely on the expertise and advice of other professionals to be successful. Andy’s accountant has been with him since the early days of his business. It was his accountant who connected him with other key people such as his lawyer, financial adviser and bookkeeper. He credits this team with helping achieve all his biggest goals in life – starting a business, buying a factory, buying a dream home and setting up a plan for a comfortable retirement. So grateful for his team and the service they gave him, he referred his mates to them. He’s the kind of guy anyone would want as a client – someone you could build your business around.

It was all going to plan for Andy until the Covid-19 tsunami came crashing down around him. With every aspect of his financial world affected – business coming to an abrupt halt overnight; his property, super and investments all taking devastating hits – Andy now more than ever, needs his team. When talking to him it was clear that what’s keeping him awake at night is worrying simultaneously about both his physical and financial health.

Andy is lucky that his accountant has always done more than just lodge his tax return, his financial adviser more than just advise him on super, his book keeper more than just balance the books, his lawyer more than just prepare a standard will and his banker more than just provide a loan. Andy trusts that his team will work together with him to weather this storm.

I’ve seen some great examples of advisers pulling out all stops to help navigate their clients through this challenging time. The power of great advice in action can be seen at Tim Munro’s Change Accountants and Advisers practice. Check out Chris Ridd’s interview with Tim here to learn about his special COVID-19 Business Continuity Plan, which is estimated to be helping thousands of businesses stay afloat during these times.

Finally, here at myprosperity we’ve been working hard to bring forward a special new release that will prove to be a panacea for your business. It’s like nothing you have ever seen before, providing a space for accountants, planners, lawyers and mortgage brokers to come together in one place to help your clients live their best financial lives. Watch this space.

Written by myprosperity Executive Director, Peter McCarthy

Accessing super early, technology versus human connection and family time are just some of the topics that were touched on when Chris Ridd sat down with James Solomons, Global CFO of Xref & Director of businessDEPOT. Episode four of myprosperity @ home tells the story of how James is coping managing his advice business remotely from home amid the conditions of corona. 

The market shock of COVID-19 has given Australian’s whiplash as we grapple with normalising notions such as job insecurity and long-term economic uncertainty. At this time people are under a lot of emotional stress which is something James feels throughout his client base. An important mission James has been on lately has been to restore calm and a sense of security to his clients who are feeling the pressures of the current climate. The approach he’s taking now with his clients is a safe one, making more conservative investment decisions whilst also communicating the importance of having measures to fall back on, such as reserves.

When asked about the move to allow people to access some of their super early to give financial relief, James asserts that “Everyone wants a buffer in the bank. That early access to super could potentially be that buffer that they can get out, and let it sit there.”. He explains that the transition into this new reality has been too stark for many Australians as they weren’t prepared, and that measures like this will help provide that crucial relief to people suffering. 

The transition to working remotely for James and his staff was one of ease as the company for some time had been utilising digital workflows such as document signing and telecommunication platforms like Zoom and Slack for meetings. They’re fluency in anything digital made business continuity simple, but one key factor that James feels the business cant replicate as they make the move home – human connection.

To reconcile this concern James makes sure that he and his staff regularly meet on Zoom throughout the day to keep that crucial face-to-face time in as much as they can. During this time it’s important for accountants and financial planners to take a break and restore energy levels, believes James, as the task at hand of helping the many suffering Australian’s will be emotionally taxing. With this in mind, James runs his business with the understanding that demonstrating self care to yourself just as you would to your clients, is just as important. 

You can watch the episode in full below.