The rapid growth in the SMSF sector during the last 5 years proved to be a challenge to administrators. While the number of SMSFs being set up each day grows, administration service offerings in Australia are getting cheap. Although these low priced option provides limited service and restricts on who the SMSF can invest with or what it can invest in, many Australians set up their SMSFs under the scheme because it offers free set up. Under this scenario, quality and compliance is sacrificed and puts SMSF trustees at risk of committing breaches unknowingly.
The ability of SMSF administration systems to take transactional data feeds from stockbrokers and bank accounts has drastically reduced the manual input that needs to be done. However, this did not eliminate the critical human input to transform the data feeds into relevant financial information. This input remains scarce and expensive in Australia and renders high quality offshore outsourcing solution as the key to your business survival.
When you outsource the human resource intensive segment of your SMSF administration offering to Infinit Accounting, you substantially reduce your direct cost while still offering premium SMSF service to your client. This improves your bottom line and allows you to keep your price stable and avoid the threat of losing clients to the low cost low quality providers. With Infinit Accounting’s outsourcing solutions, you can also create a new service offering and compete in the low cost arena.
Daily/Weekly Transaction Processing
Every working day, our staff will get into your client’s SMSF account in the cloud software and will process all bank transactions a day before. The dedicated staff will also go through documents received by the fund a day before to ensure non cash transactions are also accounted for. The effects of a day’s transactions in the fund’s profile should be seen in the fund dashboard. Unconfirmed transactions will be lodged under suspense accounts for disposition the following day.
Weekly Transaction Processing
Every Monday, our dedicated accountant will access your client’s files in the cloud software and in the client’s document folder. Based on these documents and on the bank transaction feeds for the week, all transactions for the week before will be processed. Thereafter, procedures will be performed in the system to ensure all affected items in the fund’s dashboard show updated information.
Monthly Transaction Processing
A working day after the end of each month, our accountants will access your client’s account in the cloud software and will process all cash and investment transactions for the month. For non-cash transactions, such as roll-over of term deposits, corporate actions, etc., our accountants will access your client’s designated folder in your system containing investment and member documents. Thereafter, month end processes will be performed to generate the financial reports for the month.
Annual Transaction Processing
For your clients not requiring access to timely information about their SMSF, we can do one full year processing of all transactions. Upon your advice at any time after the end of a financial year, our accountants will access your client’s account in the cloud software and will process all bank and broker data feeds. For non-cash transactions and transaction details that date back to the first month of a financial year, we require that you provide us copies of all transaction documents. Unless there are queries which we will send to you immediately as they arise, we will complete the full year processing with a single access to the fund.
Preparation and Electronic Lodgement of Fund’s BAS/IAS
Every end of a quarter, we will require that you send to us a scanned copy of the fund’s BAS or IAS received from the ATO if there is any. Based on transactions we have processed for the fund during the quarter, we will compute for the tax due or refundable for the quarter. Our computations are supported by clearly understandable work papers and corresponding letter or draft email to your client notifying them of how much to pay or how much to expect as tax refund. We can also electronically lodge the return.
Preparation of Audit Ready Work Papers, Financials, and Tax Returns
We will reconcile all the fund’s financial accounts for a financial year. We will create the properly referenced final trial balance supported by documents, work papers, and computations following the expectations of an ATO approved SMSF auditor. We will ensure that the resulting complete set of financial reports as required by ATO and ASIC are supported by audit trails. Finally, we will prepare the complete set of the annual financials and tax returns ready for audit by the auditor and for lodgement if there are no audit findings. Based on the audited figures, we can also prepare the final pension calculator and pension letter.