But he admits he can understand boss Ally McCoist's reasoning as he looks to bolster his ranks ahead of the new Championship campaign.
The Ibrox boss has added veteran forward Kenny Miller and former St Mirren defender Darren McGregor to his squad so far this summer while a move to bring Kris Boyd back to the club is still in the pipeline.
With no scouting network in place and no funds to buy in players, McCoist has had to go with tried and trusted stars as he has manoeuvred through the bottom two tiers.
Smith is confident McCoist's approach will pay off again in the push for the Premiership and said: "In terms of the Championship Rangers have strengthened more than any team in the league.
"Miller and Boyd are completely short-term moves by Rangers and no disrespect to either player as they have had fantastic careers.
"Rangers are not building towards a future by bringing in Miller and Boyd.
"The signing of the strike duo is a means to an end to get them back to where they want to be.
"Rangers are signing Miller and Boyd as they expect them to do the job and get them back up to the top flight and they are tried and tested.
"I thought Rangers might have developed a lot more of their younger players whilst they were playing in the lower leagues.
"This is the hardest test they will face since they have been out of the Premiership."
Rangers will kick-off their bid for Championship glory with the spectre of off-field problems still looming large over Ibrox. The progress through the leagues has been straightforward for McCoist's side so far as they gear up for what they will hope will be their final year outside the top flight.
But former Gers striker and director of football Smith knows the club can't be given a clean bill of health just now.
He said: "It is hard to say where Rangers are.
"We keep hearing about the problems with the supporters with regards to season ticket sales but nobody really knows.
"The biggest factor is the business side of the club and all the uncertainty."