SMSF Audit Software

Full trial balance integration with Class, BGL, and SuperMate streamlines SMSF audits by automatically pulling accurate financial data into the audit file. It significantly reduces manual data entry, lowering the risk of errors and inconsistencies.

Automated client data sync streamlines SMSF audits by ensuring client information is accurate, up to date, and consistent across systems. It reduces manual data entry, minimising errors and saving valuable audit time. Real-time syncing supports smoother workflows and faster audit preparation. By keeping data aligned, auditors can focus more on analysis and review rather than administration.

Monitor your entire audit pipeline in real-time with our integrated dashboard. See audit progress and pending tasks instantly, eliminating the need for tedious follow-ups and allowing you in total control.

Speed up processing every year with easy rollover functionality, saving you the hassle of re-entering critical data year on year. This also makes for easy annual comparisons with all of your data bundled into yearly audit packs with attachments included.

SMSFs operate under strict legal and regulatory frameworks. Trustees are responsible for ensuring the fund complies with superannuation laws, including investment restrictions and reporting requirements . The fund must have its own bank account, Tax File Number (TFN), and Australian Business Number (ABN). Members direct their superannuation contributions into the SMSF’s bank account, similar to how contributions are made to retail super funds .

There is no legislated minimum balance required to establish an SMSF. However, the Australian Securities and Investments Commission (ASIC) suggests that a combined member balance of $200,000 is typically necessary for an SMSF to be cost-effective . Many financial experts recommend a higher balance, often between $300,000 and $500,000, to ensure the fund remains viable after accounting for setup and ongoing administrative costs.

Individuals choose SMSFs for several reasons:

• Control: SMSFs offer complete control over investment decisions, allowing trustees to tailor their portfolios to specific goals and preferences.
• Investment Choice: SMSFs provide access to a broader range of investment options, including direct property, international shares, and collectables.
• Cost Efficiency: For larger balances, SMSFs can be more cost-effective compared to traditional super funds, as fixed costs become a smaller percentage of the total fund size.
• Estate Planning: SMSFs offer flexibility in estate planning, allowing members to control how their wealth is distributed to beneficiaries.

Yes, individuals can set up an SMSF themselves.

The process involves:

• Choosing a Trustee Structure: Deciding between individual trustees or a corporate trustee.
• Establishing the Fund: Creating a trust deed and registering the fund with the ATO to obtain an ABN and TFN.
• Opening a Bank Account: Setting up a dedicated bank account for the fund.
• Developing an Investment Strategy: Formulating a strategy that complies with the sole purpose test and other regulatory requirements. 
• Ongoing Compliance: Ensuring the fund adheres to all reporting and compliance obligations. 

While it’s possible to establish and manage an SMSF independently, many individuals opt to engage professionals such as accountants, auditors, or financial advisers to assist with setup and ongoing compliance.

The 5% rule pertains to the limit on in-house assets (INHA) within an SMSF. INHA include loans to, leases to, or investments in related parties of the fund. According to the ATO, if at the end of the financial year an SMSF’s in-house assets exceed 5% of its total assets, trustees must prepare a written plan to reduce the in-house assets to 5% or below before the end of the following financial year.

Exceeding this limit can result in the fund becoming non-complying, leading to the loss of concessional tax treatment and potential penalties.

An SMSF gives you a high degree of control and flexibility over your superannuation. The key benefits include:

• Investment Control: You have complete control over where your super funds
  are invested, allowing you to choose a wide range of assets, including direct
  property, shares, and collectibles.
• Flexibility: An SMSF can be tailored to meet your specific retirement goals,
  offering greater flexibility than a traditional retail or industry fund.
• Potential for Tax Savings: You can potentially save on tax through strategies
  such as managing capital gains and strategically timing contributions.
• Estate Planning: It can be a powerful tool for intergenerational wealth
  transfer, providing greater control over who receives your super balance when
  you pass away.

While there are many rules, these five are fundamental for SMSF trustees:

• Sole Purpose Test: Your fund must be maintained for the sole purpose of
  providing retirement benefits to its members.
• Trustee Requirements: All members of the fund must be trustees (or
  directors of the corporate trustee).
• Investment Strategy: You must have an investment strategy in place and
  regularly review it to ensure it meets the needs of all members.
• Separation of Assets: Your SMSF’s assets must be held separately from your
  personal or business assets.
• Annual Audit: Your fund must undergo a yearly audit by an independent and
  registered SMSF auditor.

The main downsides of an SMSF relate to the high level of responsibility required from
the trustee:

• Significant Responsibility: You are legally responsible for all aspects of the
  fund’s management, from administration to compliance.
• Time and Effort: It can be a significant time commitment, as you must stay on
  top of all administrative tasks, regulatory changes, and investment decisions.
• High Costs: The fixed costs of running an SMSF, such as audit fees and ATO
  levies, can be high, which can eat into your returns if your balance is small.
• No Compensation for Trustee Work: You cannot be paid for the work you do
  as an SMSF trustee.