Hello and Welcome to September 2024 FAQs edition!
In this edition, we're excited to share tips on returning to basic and best practices and essential updates on corporate actions processing and tax statement processing that will empower your learning journey. This edition is filled with valuable information to help you navigate class with confidence. Let’s dive in and make this month your best yet!
Getting Back to Basic and Best Practices
Whether you are new to Class or an experienced user seeking a more efficient way to process funds, we have recorded webinar series on the "Four Steps to Lodgment." This series will guide you through the best practices for fund processing from the beginning to the end of the financial year.
To help you get started, here’s a quick reference guide on the recommended sequential steps to follow when processing a fund in Class throughout the year.
Steps |
Types |
Load Data |
New Fund setup/Transitions Cash Transactions Buys and Sells |
Reconcile Investments |
Process Corporate Action Match opening balance accrued distributions
|
Automation Tools |
Generate Income Auto-match Transaction Rules |
Manual Events |
Single event (Match to New Function) Rental statement Create any Accruals (not for Listed Securities) |
Year end |
Set up Valuation • Business & fund level unlisted securities • Property • Custom Holding Accounts Tax Statement Exception Report Period update Tax Finalisation |
In addition to the fund processing steps, the checklist below is designed for you to integrate into your internal policies and procedures. This will help ensure proper setup, review, and reconciliation, ultimately enhancing efficiency and consistency in SMSF processing within your practice.
Corporate Action Processing
Did you know that Class has been automatically processing corporate actions for your funds since 1 May 2024? Certain corporate actions, like code changes, are now handled overnight without requiring you to click the Action and Submit buttons. To learn more about the automated supported corporate actions and how they work, click the link here.
In FY24/25, Class has implemented two highly sought-after and complex corporate actions for your ease of processing. Here is more details:
- De-stapling of Abacus Property Group Restructure (ASX: ABP) : The cost base calculation can become complex with changes in ownership. Before implementing the corporate action, Class offered a reference calculator for clients who need to process this action manually. For more information about this corporate action, please refer to the article and reference materials provided.
- Off-Market Takeover for Boral Limited (ASX: BLD): Since this takeover is a piecemeal, the consideration offered maybe vary. Class only supports the default or compulsory takeover for the "lazy" investors; which include cash offer of $1.70 (this amount includes a $0.26 special dividend), therefore the effective cash component is $1.44 ($1.70 - $0.26) with the scrip component based on closing price of Seven Group on 4 Jul 2024. This corporate action applies to funds that follow the ultimate takeover date. If a fund accepts an early offer, the demerger percentage will need to be adjusted according to their own cash and scrip calculations, as well as the timing of their actions. You will need to override the corporate action set up in Class. While processing this corporate action in your fund, you may encounter the following error: The Target Book cost for all parcels may not be negative. Some parcels have negative book costs due to the capital returns given by Boral dated 4 Feb 2022. To resolve this error, please refer to the article on how to adjust the parcels with negative cost base before proceeding to execute this corporate action.
Here are some useful tips of processing corporate action in Class:
- Bulk or fund level: You can handle all mandatory corporate actions and optional Hybrid Security Reinvestments in bulk across your business entities using the Corporate Action console, or choose to process them individually at the fund level.
- Manual Corporate Actions: Please note that we do not automate corporate actions for unlisted or foreign-listed securities. These will need to be processed manually. Refer to our guide for details on which corporate actions you can choose to process.
- FAQs: We’ve compiled a list of helpful FAQs regarding corporate action processing for various scenarios.
- Request Corporate Actions: If you notice that Class has not implemented any ASX-listed share corporate actions, feel free to submit a support request for follow-up.
- Monthly Release: Class regularly adds and implements corporate actions. You can find more information on the latest corporate actions in our monthly release updates.
Tax Statement Processing
As we reach to the end of the first quarter FY25, Class has successfully automated over 200 tax statements for FY24. You can track the status of Class automated tax statement here supported by Class for Financial Year 2024.
Please note that the dates listed are the anticipated release dates from the investment providers. Since Class does not receive automated tax statements directly from them, our team conducts a comprehensive review of the data to ensure its accuracy and validity before it’s made available on our platform. This is why you may notice a delay between the provider's release date and when the statements appear in the Tax Statement Console.
For further assistance, please find the useful articles containing instruction on tax statement processing. We also have a recorded webinar available that provides further guidance on the topic.
You have the flexibility to process tax statements using one of the following four methods:
- Automated (Highly Recommended!) -This method involves generating tax statements in the Tax Statement Console. Our latest release enhancement will now enables you to retrieve tax statement automation even if your investments are linked to wrap/platforms feeds. For a comprehensive guide, please consult our Help Centre article, accessible through the provided link.
- OCR (Optical Character Recognition) -Utilize OCR by uploading and extracting data from a file directly within the Tax Statement Console.
- Wrap/Platform feed - some data feed providers that support tax statements as part of their data feeds. This data will seamlessly flow as part of the business event under automated feeds.
- Manually entered -When none of the above options are available, you can process manual entry via Transactions> Fund Income> Distribution Tax statement event.
Webinars and Training
Training:
Class offers a complimentary online course, Class Essentials, covering modules and topics presented in our live training courses. These modules can be attempted in any order, and upon completion, you will receive a certification of achievement.
Webinars:
Date |
Title | Link |
1 Aug 2024 | Compliance Update for Accountants | Recorded Webinar |
13 Aug 2024 |
Death benefit and Family Law Processing |
Recorded Webinar |
27 Aug 2024 | Tax Statement Processing | Recorded Webinar |
29 Oct 2024 | Pension Processing | TBA |
26 Nov 2024 | Corporate Action Processing | TBA |
Please keep a lookout for our in-app shoutout pop-up notifications detailing how to register for our future webinars.
To view the FAQs newsletters from past months please click here.
As always, you can contact the Class Customer Service team on 1300 851 057, Chat with us via Live Chat, or email us at support@class.com.au