SMSF Compliance Doesn't Have to Be Complicated — Let SMSF Wizard Take Care of It
Running your own SMSF gives you greater control over your superannuation and investments.
But with that control comes something most SMSF trustees could happily live without:
The paperwork.
Financial statements. Tax returns. Annual audits. ATO reporting. Contribution records. Pension documentation. Asset valuations. Trustee minutes. Compliance requirements.
And the rules don’t stand still.
If you already have an SMSF and you’re tired of worrying about whether everything has been done correctly, SMSF Wizard can take care of the annual accounting and compliance work for you.
What does an SMSF need to do every year?
Every SMSF has ongoing compliance and reporting responsibilities.
Depending on the circumstances of your fund, these can include:
• preparing annual SMSF financial statements;
• preparing and lodging the SMSF Annual Return;
• arranging the fund’s annual independent audit;
• reviewing member contributions;
• maintaining appropriate SMSF records and documentation;
• dealing with pension and transfer balance reporting requirements;
• ensuring assets have been appropriately valued;
• maintaining information required for the fund’s investment strategy; and
• dealing with ATO correspondence and compliance matters.
The important point is that having relatively simple investments doesn’t necessarily eliminate your SMSF’s annual compliance obligations.
You might only have a bank account and a share portfolio.
You might hold ETFs.
You might have an SMSF investment property.
You might be drawing an account-based pension.
Whatever the investment strategy, the fund still needs to remain compliant.
“Can’t my normal accountant just do it?”
Possibly.
But SMSF accounting is a specialist area.
SMSFs operate under a specific regulatory framework, and seemingly straightforward transactions can create additional compliance issues.
For example:
• Was money deposited into the fund correctly classified as a contribution?
• Was an expense paid personally that should have been paid by the SMSF?
• Does a property need a new valuation?
• Has a pension been documented and reported correctly?
• Were minimum pension requirements satisfied?
• Does a transaction involve a related party?
• Is there sufficient documentation for the SMSF auditor?
These are the sorts of issues that can turn an apparently simple SMSF into a much more complicated compliance exercise.
That’s why using an accountant who specialises in SMSFs can make a significant difference.
The audit isn’t the only thing that matters
One common misconception is that the annual SMSF audit is the entire compliance process.
It isn’t.
Before the audit can be completed, the fund’s accounting records and financial statements generally need to be prepared and the necessary supporting documents assembled.
The auditor then independently examines the fund.
After the accounting and audit process is completed, the SMSF Annual Return needs to be lodged with the ATO.
In other words, SMSF compliance is a process — not simply a tax return.
What happens if your SMSF annual return is late?
This is an area trustees shouldn’t ignore.
The ATO requires an SMSF Annual Return to be lodged for each financial year in which the SMSF operates.
Falling behind can create considerably more stress than simply getting the compliance work completed on time.
If an SMSF Annual Return becomes sufficiently overdue, the fund’s status on Super Fund Lookup can also be affected. That can create practical problems with receiving rollovers and employer contributions.
So if your SMSF has fallen behind, ignoring it usually isn’t the best strategy.
Get it fixed.
SMSF Wizard can assist trustees with bringing outstanding SMSF accounting and compliance work up to date.
Have an SMSF property?
Property is one of the areas where specialist SMSF knowledge becomes particularly important.
An SMSF holding residential or commercial property may need to deal with issues including:
• annual property valuations;
• rental income and expenses;
• related-party transactions;
• commercial property leased to a related business;
• limited recourse borrowing arrangements;
• loan documentation;
• capital improvements;
• GST considerations in appropriate circumstances; and
• the fund’s investment strategy.
There are also strict restrictions around how SMSF assets can be used.
A property owned by your SMSF isn’t simply another investment property held in your personal name.
The superannuation rules matter.
What about SMSF pensions?
Once members move into retirement phase, another layer of administration can arise.
Depending on the fund, this can involve pension commencement documentation, minimum pension calculations, actuarial requirements, exempt current pension income and transfer balance account reporting.
Mistakes can potentially affect the tax treatment of the fund.
Having the accounting and compliance work handled by an SMSF specialist means these matters can be considered as part of the annual compliance process rather than discovered after something has gone wrong.
Already have an accountant but thinking about changing?
Changing SMSF accountants is usually easier than trustees expect.
You don’t need to stay with the accountant who originally established your SMSF.
And you don’t need to stay with a provider simply because they have handled the fund for years.
If you’re unhappy with:
• slow turnaround times,
• poor communication,
• unexpected fees,
• having to constantly chase your accountant,
• or simply feel that your SMSF isn’t receiving specialist attention, it may be time to change.
SMSF Wizard specialises in SMSFs.
We can work with you to obtain the information required to transition your SMSF and take over its ongoing accounting and compliance.
Why use an SMSF specialist?
SMSFs aren’t something we occasionally deal with.
They’re what we do.
SMSF Wizard specialises in SMSF accounting, compliance, audit coordination and administration.
Our objective is straightforward:
You manage your investments. We help take care of the compliance.
Rather than spending your time trying to work out what documents the accountant needs, what the auditor is asking for or whether another ATO requirement has changed, you can have a specialist SMSF team handling the annual process.
What we can take care of
Our SMSF compliance service can assist with the annual accounting and compliance process, including the preparation of your SMSF financial statements and annual return and coordination of the independent SMSF audit.
We can also assist with more complex SMSFs, including funds holding property, shares and other investments, funds paying pensions and SMSFs with outstanding compliance work that needs to be brought up to date.
The result?
Less administration. Less chasing. Less uncertainty.
And more time for you to focus on why you established an SMSF in the first place — controlling and managing your retirement investments.
Is your SMSF compliance due?
If you already have an SMSF and want a specialist team to take care of the annual accounting and compliance work, talk to SMSF Wizard.
Whether your fund is straightforward, holds investment property, is paying pensions or has fallen behind with its annual compliance, we can review where things stand and explain what is required.
Already have an SMSF?
Make the compliance the easy part.
Contact SMSF Wizard today and let us take care of the annual SMSF accounting and compliance process.