Running an SMSF is not an easy task and help of an SMSF professional should always be considered. Being an SMSF trustee time needs to be devoted to the administration of the fund. Two important requirements to have an SMSF that are unavoidable which are to prepare and lodge tax return every year and arrange the independent SMSF audit.
If you are an SMSF trustee and using the services of an SMSF accountant or tax agent they will prepare and lodge the SMSF tax return once the independent SMSF audit is finalised. But if you are doing the accounting and tax return task yourself firstly annual accounts will be prepared with the annual return and then the audit will be conducted where you need to provide the financials, tax return, bank statements for the year, investment documents and other documents as requested by the auditor to conduct the audit of the fund. There is a requirement to provide any further information as requested by the auditor within 14 days’ timeframe.
Using an SMSF software makes it easy as the reports generated by these software’s are specially for self-managed superfunds which includes the balance sheet, investment reports, member statements. Tax return copy can also be generated from these software’s. On the balance sheet assets will be listed with their market value according to the ATO valuation guidelines. Then under liability section all the liabilities will be mentioned example being limited recourse borrowing liability, any tax liability and any other type of liability. Then at the bottom part members name with their balance in the fund at the year end will be covered. For some assets valuation needs to be obtained from the independent qualified valuer such as collectibles and personal use assets and this value should be used for year end accounts and tax return.
The good news regarding SMSF tax return is its preparation speciality with experience as the documents required for the this is easy to understand with the help of the checklist and special software’s available where when the accounts prepared tax return copy can be easily generated from this.
Like any other entity in Australia tax return will be prepared, lodged and tax will be paid or refunded if there is any refund. According to ATO and in general help of an SMSF professional should always be considered because of its complexity, rules and you can’t do all yourself. Annual SMSF audit is a mandatory requirement and needs to be arranged at least 45 days before the return lodgement due date to allow sufficient time for the SMSF auditor to finalise the job and provide you with the audit report.
Outcome of the SMSF audit will be mentioned on the audit report and appropriate columns regarding the audit should be ticked on the SMSF tax return before lodgement. For any contravention SMSF auditor will also lodge the auditor contravention report to the tax department.
If you are in search of an SMSF professional for the annual accounts of the SMSF please feel free to contact Superfund Warehouse.