One of the fastest growing sector of superannuation for the past two decades have been the Self Managed Super Funds or SMSFs. This is manly because Self Managed Super Funds offer a level of control and flexibility which none of the other traditional superannuation alternatives can.
There are many advantages that come with a Self Managed Super Fund. First of all, with an SMSF you have the chance to reduce income tax on capital gains and investment income. You also have an increased flexibility when it comes to choosing investments and assets, including total control over your investment portfolio. The fact that SMSFs have between 1 to 4 members allows you to combine the resources with others, such as family members, that have the similar financial goals. Other advantages include maximum flexibility regarding the use of pension income, the ability to own property, resource borrowing, and so on. Overall, an SMSF gives people greater visibility over their retirement savings and greater confidence in their investments and life decisions.
However, it is important to have in mind that an SMSF also comes with great responsibility and a set of strict regulations. Breaking those regulations could be devastating for your super fund which is why you should get well informed and consult or hire some experts in the field.
For example, you as a trustee, need to keep accurate accounting records regarding your super fund’s transactions and financial position and SMSF accountants can help you with this. Since mid 2013, any accountant that is signing off SMSF audits, must be registered with ASIC and this is considered to be a a positive step forward for the entire SMSF industry.
Today, there are independent firms that can perform audits for SMSF accountants. These firms specialise in providing SMSF accounting, auditing and taxation services. These services offer accounting firms a wide range of distinct advantages. For starters, they offer true independence and the relationship with the client is protected. It is actually against the law for firms to handle the accounting and auditing services of their own SMSF clients. Most of the firms that provide accounting, taxation, and auditing services have fees that are acceptable for both parties and they usually charge at fixed rates. SMSF accounting services are both time and cost efficient. You can find such firms that are based in Melbourne, operate online Australia wide using Dropbox for sending files, and they have the capacity to complete your SMSF audits immediately.