Self Managed Super Fund (SMSF) is a great option when it comes to your retirement savings. This superannuation trust structure was developed to provide financial support to its members upon their retirement. It offers multiple benefits, however, one of the most expedient advantages of SMSF is the amount of control it provides to its members over their funds.
As it is a superannuation trust, it requires trustee. SMSF has two trustee structure options namely Corporate trustee and Individual trustee. In the corporate trustee structure, the company takes the role of trustee and members act as directors while in the case of an individual trustee, each member is stated as a trustee and there should be at least 2 trustees. When setting up SMSF, it is important to choose the right trustee structure as your choice would have some significant implications on your finances.
Now that you know what SMSF is, we shall ponder the reasons why you need services of an SMSF accountant or SMSF administration.
Reasons to Hire SMSF Accountants
Setting up SMSF comes with certain responsibilities that include creating SMSF’s investment strategy, SMSF auditing, keeping SMSF records and most importantly lodging SMSF’s annual tax return. Managing everything on your own is not a cakewalk especially being a business owner when you already have a lot on your plate.
To handle everything adeptly and satisfy all the SMSF responsibilities, you should know the tax laws and expertise in the field and if you don’t then it becomes imperative to hire a professional SMSF accountant.
There are several benefits to hiring an SMSF accountant. You have two choices, either you can hire an individual accountant or you can hire an SMSF administration firm that provides SMSF accounting services. Though both are worthwhile, many professionals prefer the later option for their reliability.
Let’s proceed further to discuss 5 indispensable reasons why you should hire SMSF accountants and the benefits provided by them.
Get personal guidance
When you outsource SMSF accounting services, you know that you have got the back of an experienced professional, providing you with guidance at every step of your way. You have a constant support of experts giving you personal assistance any time you need. The pieces of advice provided to you by the SMSF accountant holds a greater significance concerning long term success.
Multiple investment options
SMSF provides you with multiple investment options such as term deposits, residential property, commercial property, collectibles, direct share, and more. An SMSF accountant or SMSF administration ensure that you invest wisely and helps you to create a well-structured strategy for your investment.
Streamline your task with less paperwork
SMSF accountant knows how too streamline your work. Usually, the SMSF accountant aims to minimize the paperwork like documentation and manual data entry to avoid any error. Furthermore, SMSF accountants have automated software that ensures the accuracy of the work.
Get assistance in auditing
When it comes to SMSF taxation, auditing is the most important obligation. Before lodging annual SMSF tax return, preparation of fund accounts, asset valuation, and annual audit are incumbent. SMSF accountant is an expert SMSF auditor who helps you auditing your funds precisely. They complete your audit at the end of each financial year. In addition to this, the SMSF accountant prepares and updates your fund’s trust deeds.
Comply with laws
SMSF accountant makes sure that your SMSF is ATO compliant to help in minimizing the taxes. One of the crucial duties of the SMSF accountant includes ensuring that your SMSF adheres to different tax laws and super laws. They possess comprehensive knowledge of all tax laws that they employ to avoid the violation of any of these laws.
So, now you know why you should consider hiring an SMSF accountant. If you are planning to set up your SMSF, outsource SMSF accounting services to manage your SMSF tax return and control your taxes to avoid paying a large amount of tax every year.
While choosing SMSF accounting services, be careful and consider certain factors like the experience, knowledge, credentials, and cost to choose the right SMSF accountant.