Welcome to the Mclowd Newsletter, our monthly communication to Trustee Users, Marketplace Professionals and Partners.

Introduction

Earlier this month I moved Mclowd’s own internal accounting from MYOB to a free cloud-based platform called Wave.

While it will no doubt be unwelcome news for incumbent vendors, the simple economic reality is that accounting software is now free.

That it is free has very little to do with Mclowd or Wave and everything to do with the economics of cloud computing and crowdsourcing, which have driven down the costs of developing and delivering generic software to such an extent that the intellectual property can now be made available free of charge as part of a wider (‘multi-sided’) business model.

And just as the migration of our own accounting was much easier at the beginning of the financial year, many Trustees have been realising that now is a great time to change to Mclowd.

New Platform Functionality

Version 1.2 of the Platform is now live, and includes the ability to edit / delete individual transactions.

It is clear from your feedback that the ability to correct data entry errors has been holding up migration for many Users so I am glad this one is now behind us.

While the focus of version 1.2 was on usability, we are conscious that in order to further accelerate the rate of adoption of the Platform we need to accelerate the delivery of new functionality.

As such we have scheduled a major push in August designed to encourage as many Trustees (and accounting firms) as possible to migrate (or encourage their clients to do so).

Version 1.3 is our most ambitious release since launch, and will include the following:

1.  Member Roll-In Accounting
A new screen to simplify data entry for the Roll-Ins necessary to create Member Opening Balances.

2.  Trial Balance Report
A list of all General Ledger accounts used for monthly control and reconciliation to ensure total Debits = total Credits.

3.  GL Rollover/Roll Back
Further logic to support the generation of year-end Fund calculations – closing financial periods and creating new opening balances for the next fiscal year.

4.  Asset Revaluation
Revaluation of assets at a point in time e.g. end of financial year and creation of necessary accounting entries to post to General Ledger.

5.  Member Statements Reports
Creation of Member Statement Reports to capture opening balances, movement in year and closing balance.  The Member Statement will summarise all Contributions, Contribution Types, Rollovers, Tax Components, Preservation Components as well as any withdrawals made from the SMSF by each Member.

While much of the heavy lifting in terms of software development is being done by a crack team of developers spread around the world, in relation to the Platform I want to acknowledge the leadership of the Advisory Board and particularly Graeme McGuire and Geetha Srikant.

Our goal is to break through the A$100m mark in terms of assets under management by the end of August and to convince a growing number of Trustees and channel partners that it is no longer necessary to pay licence fees to incumbent vendors such as BGL, Class and their peers.

Marketplace

SMSF accounting and administration services are now being delivered through the Marketplace, and as a consequence Mclowd has started to generate its first revenues.

Registration is quick and easy, so if you’re an SMSF Trustee jump on now and start saving money on the preparation of your FY13 SMSF return.

If you’re a service provider click here to start promoting your services to the rapidly growing Mclowd User Community.

(For now you will need a Paypal account to transact but over time we will provide more flexible payment processing options).

Mclowd 2015

It is appropriate that the Mclowd journey began in the SMSF sector, as self-managed super is the ‘canary’ in the funds management ‘coal mine’.

The direct ownership of $400 billion in assets corresponds to cost savings of some $4 billion per annum against traditional asset management revenue models.

These cost savings are being generated at the same time as those 500,000 Funds deliver investment performance which is equal to (if not better than) the retail and industry funds.

But what has been missing from this story to date is a scalable technology and services environment to co-ordinate investment management across that $400 billion in assets (particularly accounting and tax compliance).

Mclowd has stepped in to fill that gap, and over the next couple of years the Platform and Marketplace will evolve into a global workflow management tool that will support the direct ownership of assets at scale.

Thanks again for your continued support of our efforts to drive down the costs of investment administration worldwide.

Kind Regards

Ashley Porter
Managing Director
Mclowd Pty Ltd