As the government imposes more and more regulations on SMSF financial advisers and accountants, it seems like a good time to contemplate exactly what an SMSF Accounting Service should look like.
Gone are the days when a once a year “shoe box” service will meet all the legislative requirements and keep your SMSF compliant.
Here are just some of the things you should be looking for in an SMSF Accounting Service:
Professional Qualifications & Experience
When you engage your SMSF Accountant you should be looking at what specialist SMSF accounting qualifications and experience they have.
Peak professional qualifications include:
· SMSF Association’s (SMSFA) SMSF Fellow
· SMSF Association’s (SMSFA) SMSF Specialist Advisor
· Chartered Accountants Australia & New Zealand (CAANZ) CA SMSF Specialist
An Accountant with one or more of the above qualifications has dedicated the time to become a specialist in SMSFs.
Comprehensive SMSF Workflows
Legislative requirements for SMSFs are many and each requirement has its own lodgement period. A slapstick service approach will not keep your SMSF compliant so you will want to see that the service is comprehensive and well organised.
Your SMSF Accountant should be able to clearly explain to you the legislative requirements for any event or transaction you wish to undertake in your SMSF and set out exactly how their service meets the requirements.
Real Time Data Collection
If your SMSF Accountant is not talking to you about collecting your data in real time then they are not serious about keeping your SMSF compliant.
Many events now require reporting within the financial year so your SMSF Accountant needs data throughout the year so your SMSF meets the requirements.
If your SMSF Accountant has set up bank and investment manager feeds and arranged with you to receive supporting documents directly then they are best placed to keep your SMSF compliant.
Utilise Technology to get things done properly
Sometimes what is required by the law is just more onerous than what is otherwise convenient.
For example, the annual SMSF accounting process requires the Financial Accounts to be signed before the Audit Report is issued and the SMSF Annual Return to be signed after the Audit Report has been issued.
By utilising digital signing technology your SMSF Accountant can make this signing process quick and easy even though it is done in two steps.
No Backdating
For any event you are planning for your SMSF, for example, commencing a pension, you want the comfort of knowing that it can stand up to legal and/or regulatory scrutiny. You don’t want to think you have a pension or a death benefit nomination in place only to find out that the documents completed to record them are not valid.
Your SMSF Accountant should be communicating with you about timeframes and ensuring that all SMSF documents are completed prospectively.
Integrated Offering
It takes a team of professionals to service your SMSF and your SMSF Accountant is usually the person co-ordinating that team.
They should be able to clearly show you that each ancillary service provider, such as SMSF Auditor, SMSF Actuary and SMSF Lawyer, also have the requisite professional qualifications and experience in SMSFs.
For example, if they utilise an actual SMSF Lawyer with an integrated document platform you have the comfort that the legal outcome you are seeking can be achieved by the documents being put in place for you.
Lifetime SMSF is a specialist accounting business that deal exclusively with Self-Managed Super Funds. Find out how we can assist you here
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