As tax season approaches, do you feel overwhelmed by the mandatory SMSF audit?
Setting up an SMSF comes with responsibilities, such as creating an investment strategy and keeping records.
Most importantly, you need to do regular audits and lodge your SMS and annual tax returns correctly. Managing all of these tasks is not a walk in the park, especially if you are a busy business owner.
To make sure everything is handled adeptly, you should know the tax laws and expertise in the field. But if you do not, it becomes imperative to get the services of a professional.
This article discusses the benefits of an SMSF auditor and why you should hire one. It’s for SMSF investors like you! Read on.
How to Find an SMSF Auditor
The rules and regulations surrounding establishing and operating a Self-Managed Superannuation Fund (SMSF) must be strictly followed for the fund to remain legal and above board.
To ensure the validity of your SMSF, it must undergo regular audits with an ASIC SMSF auditor. This audit check is usually carried out annually.
You can search for accredited SMSF auditors online via the ASIC’s register. Auditors in this database have a valid SMSF auditor number. They are required to present this number on any SMSF returns they submit to the Australian Taxation Office (ATO).
What Documents Are Required in an SMSF Audit?
SMSF trustees or their advisors must provide their auditor with complete documents that pertain to the funds, accounts, and financial transactions for the financial year being audited. An example would be financial and bank statements for that year.
If the SMSF auditor requests additional information or documentation, the trustees must provide them within 14 days.
How Can an SMSF Auditor Help You?
You have two choices when getting the services of an SMSF auditor. Either hire an individual accountant or hire a firm that provides SMSF accounting services. Although both are worthwhile, many investors prefer the latter option for their reliability.
Let us proceed further and discuss the indispensable reasons why you should hire an SMSF auditor and the benefits they provide.
Get Personal Guidance
When you outsource your SMSF audits, you know that your interests are protected by an experienced professional.
They will provide you with guidance every step of the way. You have the constant support of an expert who will give personal assistance anytime you need it. An SMSF auditor’s recommendations and advice hold a great significance in your investment’s long-term success.
Multiple Investment Options
SMSF provides you with innumerable investment options from term deposits, residential properties, direct shares, and more. An SMSF auditor can help you invest wisely so you can create a well-structured strategy for your investments.
Streamline Your Task with Less Paperwork
An SMSF accountant will know how to make tasks in your SMSF more streamlined.
These experts can help you minimize documentation and manual data entry to mitigate errors. In addition, SMS accountants utilize automated applications to ensure the accuracy of their work.
Get Assistance in Auditing
When tax season comes, auditing is a critical obligation in an SMSF. Prior to lodging your SMSF tax return, an annual audit is necessary. An SMSF auditor can help you audit your funds correctly. They complete your audit at the end of each fiscal year.
In addition, the SMSF accountant prepares and updates the trust deeds of your funds.
Compliance With Laws
An SMSF auditor makes sure that your SMSF is compliant with the ATO.
This includes ensuring that your SMSF adheres to different tax laws, as well as super laws. With their comprehensive knowledge, they can help you avoid pitfalls that might violate any of these laws.
What Are the Characteristics of the Best SMSF Auditors?
Skilled and experienced SMSF auditors will collaborate with you and review pertinent data. They will ensure that your yearly SMSF processes are accurate, up-to-date with laws, and error-free.
To complete their audit services, they will be seeking the following information:
- An updated list of trustee members
- The organization’s structural reports
- Fiscal books and records
- Deeds and rules of the trust
An SMSF auditor in Australia will guarantee that no corners are cut and that all tasks are completed as necessitated by the law.
A good SMSF auditor possesses years of experience in performing all these operations and can be trusted to deliver the best assistance possible. Working closely with an SMSF auditor can assist you in spotting issues so you can keep on the good books of the ATO.
Hopefully, this article has helped you understand why hiring an SMSF accountant is non-negotiable.
If you plan to set up your SMSF, it is recommended that you outsource the SMSF auditing to the professionals. It will help you manage your SMSF returns and documents better so you can avoid paying unnecessarily large amounts of taxes or fees every year.
When choosing an SMSF accounting service, consider their experience, knowledge, and credentials. Weighing these factors will help you choose the right professional to hire for your investment.