October two minute update
E-filing director changes to the Companies Office
The ability to update the details for a company director held by the Companies
Office directly from Connectworks is currently in testing, scheduled to be
released in the next week or two. This will initially be available as an additional
feature when filing annual returns and will soon be extended to enable you to do
it at any time. There is no charge for this, but you naturally need to be logged in to the Companies Office within Connectworks and have the authority over the company. We’re working on being able to update shareholders and shareholdings next. We’ll keep you up to date with progress on this.
Client reference numbers on annual return invoices
When e-filing annual returns in Connectworks, you now have the ability to add a reference number for the filing, which will appear on the invoice you receive from the Companies Office. By default, this field will be populated with the client reference code you’ve recorded in the company’s Connectworks profile. It is also editable, in case you want to make amendments or add additional information (e.g. to bill a holding company). Information you enter here will be sent to the Companies Office, which has put systems in place to carry it through to their billing, helping your firm to easily match Companies Office invoices to clients.
Loading help in Tauranga
We are pleased to welcome Wendy in Tauranga to our team of loading staff around the country. With previous experience as a senior healthcare administrator, Wendy has been trained and background checked by us. She is ready to help more firms with a smooth transition to Connectworks. Her rate is $26/h which we on-charge at net.
Shareholder Continuity Tracking update
Following the huge interest in this new feature we’ve scheduled another webinar, see below.
Join a webinar demonstration
Email your name and the date you’d like to attend to firstname.lastname@example.org and we’ll respond with login details.
Companyworks - Mon 6th November @ 9am
Trustworks - Mon 6th November @ 3pm
Shareholder Continuity Tracking - Mon 6th November @ 10.30am
New and improved features
Ability to specify an organisation to be debited for annual return filings.
Users who e-file company annual returns can now specify an organisation as the
party to be debited for the cost of the filing.
Share Capital report. A new report has been added to the share register to show movement (increases & decreases) in share capital in a company as a result of issues and buybacks. This can be found in the Reports section of the Share Register.
Shareholder interests register. A new register has been created for recording shareholder’s interests. This is located in the Shareholders tab of a company’s workspace.
Share price extended to 5 decimal places. Share prices can now be specified out to 5 decimal places. This has been done to allow cases where firms wish to have the price of shares (of a class) in a company calculated by dividing the capital value of the company by the number of shares in each class.
Specify a name to be used in precedents. An optional field has been added to the profiles for parties associated to an entity (associated parties with connected accounts only), to allow firms to record a preferred name to be used in precedents downloaded for that entity e.g. Bill when their legal name is William. This can be done by selecting the parties from within the entity’s workspace (either in "People & Employees" for companies, or "Associated Parties" for trusts) and editing the user’s profile.
New and updated trust deeds
1.1 - Deed Establishing Trust (multiple Settlors) with revisions to final beneficiaries.
1.2 - Deed Establishing Trust (single Settlor) with revisions to final beneficiaries.
1.1.1 - Deed Establishing Trust (named Appointors - multiple Settlors)
1.1.2 - Deed Establishing Trust (named Appointors - single Settlor)
1.2.1 - Deed Establishing Trust (with Protector - multiple Settlors)
1.2.2 - Deed Establishing Trust (with Protector - single Settlor)
10 reasons why cross-subsiding trustee services is a bad idea
Many firms don’t charge annual fees for being a trustee, instead relying on conveyancing and other work as their sole source of revenue from the trust to cross-subsidise trustee services. We know clients don’t always value trustee services and therefore want to pay for them, but is it still a good idea to work this way? Some of the downfalls are as follows:
(1) Your clients don’t differentiate trustee services from your other work, and that you’re sitting alongside them as a trustee, as opposed to opposite them as an advisor.
(2) There is no revenue and therefore time to undertake trust annual reviews, widely acknowledging as best-practice.
(3) Without at least annual engagement with the trust, it could increase the chance of a trust activity being undertaken that you’re not aware of in advance.
(4) You’re therefore subject to more risk for less reward.
(5) Less engagement can mean clients don’t fully appreciate that trusts are an ongoing entity with a specialist set of requirements to ensure compliance.
(6) Professional indemnity insurance can be invalid for services not being charged for.
(7) A lack of fees to cover trustee services can impede on the ability to engage with other parties, such as accountants, financial advisors and beneficiaries to ensure compliance and best practice.
(8) If your fees for other services such as conveyancing, are at the higher level due to the need to cover trustee services, they may look more expensive to clients, thus jeopardizing the business.
(9) You’re missing out on the opportunity for a higher level of recurring revenue.
(10) It’s hard to disburse the cost of software to help achieve compliance, streamline management and provide secure storage on top of no fee.
October tip of the month
You can easily get a list of trusts sorted by corporate trustee company. Go the trusts tab, make sure there are no filters applied, then choose: I would like to... > export by corporate trustee PDF. You can also go into the corporate trustee company under the companies tab and then go the the trusteeship.
There are different reports and filters available on each of the client type tabs and we've been adding more information into each of the reports. Feel free to have a look and of course let us know if there is more data you'd like to see in the reports, or other reports that would be useful.