We’re all concerned with our future, and want to do what’s in our might to ensure the best, but we have to admit, we Aussies have the perfect help when it comes to saving up for the rainy days when retired. Out of all the superannuation options, the SMSF is gaining more and more popularity continuously because it provides every trustee with the opportunity to have more control with the fund, the savings, and gives you a great flexibility with investments (be it in properties, or shares), all for the benefit of your retirement days.
Of course, same as any other superannuation, there are certain rules you have to abide by that are set out by the ATO (Australian Taxation Office) to be able to run your SMSF accordingly, as there are penalties (as up to $10.800) to pay in case you make a breach. One of the main rules, apart from the sole purpose test that ensures your fund’s savings are all for the benefit upon retirement, is doing an audit annually.
While you get the chance to save up doing your own accounting and prepare the tax returns, it’s a must to have your audit carried out by a professional auditor. With a bit of search through the internet, you’d be able to find reliable companies that provide you with the possibility to check the Smsf audit fee that’s based on the complexity of the work involved in the auditing, and not on the fund’s assets.
Since there are many auditors, you can be sure you’ve found the reliable professionals if they are ASIC registered, and give you a notion of the Smsf audit fee in advance. To be able to have this done properly, and in a timely manner, your auditor is going to require all the necessary documentation you can provide (this includes insurance payouts, rentsm and loans records, as well as investments) for the transactions from the previous year, so being organised when it comes to managing your superannuation is sure to pay off.
The reason an annual audit is required is because it’s tailored to serve your fund, so you get a sense of what it is your fund needs an improvement of, or get changed, if there is such a need and that’s why it’s mandatory. As soon as the audit begins, you can expect your auditor to supply you with an engagement letter that all of the fund’s trustees have to sign, a letter of representation, balance sheet, annual tax return, income statements, as well as copies of all the SMSF files.
Since the auditor is bound to report any irregularities with the ATO, and the ASIC, be sure to run your superannuation accordingly, and refrain from hiding anything from your auditor to ensure the success of your fund.