SMSF Accounting & Compliance

Accounting and compliance support for existing SMSFs

A self-managed superannuation fund brings control, but it also brings continuing trustee responsibilities. The accounting records, supporting documents, annual financial statements, tax return and independent audit all need to fit together.

Compact Accounting provides SMSF accounting, taxation, administration and compliance support for trustees of existing funds. The practice helps organise and record the financial activity of the fund, prepare the annual compliance work and identify matters that may require attention or advice from another appropriately qualified professional.

This service is separate from personal financial advice. Compact Accounting does not recommend whether a person should establish an SMSF or whether a particular investment, contribution, pension, borrowing arrangement or property acquisition is suitable for them.

Annual accounting, tax and audit preparation

Depending on the engagement and the circumstances of the fund, assistance may include:

  • preparation of annual SMSF financial statements;
  • preparation and lodgement of the SMSF annual return;
  • maintenance or review of the fund’s accounting records;
  • recording investment purchases, sales, income and expenses;
  • recording member contributions, rollovers and pension transactions from an accounting and tax perspective;
  • preparation of the accounting file and supporting information for the annual independent audit;
  • responding to routine audit queries and liaising with the fund’s auditor;
  • trustee administration support connected with the accounting and compliance work; and
  • identifying transactions or records that may indicate a compliance issue requiring further investigation.

Every SMSF must be audited annually by an independent, registered SMSF auditor. Compact Accounting prepares the accounting and tax work and liaises with the auditor but does not perform the audit of a fund for which it prepares the accounts.

Records matter throughout the year

SMSF compliance is easier when the records are maintained as events occur rather than reconstructed after year-end. Trustees may need to retain bank statements, investment reports, contracts, invoices, contribution information, pension documents, property records, valuations, trustee minutes and other evidence supporting the fund’s transactions and decisions.

Incomplete records can delay the accounts and audit, increase costs and make it difficult to establish what occurred. Clear separation between fund assets and personal or business assets is also essential.

Where the fund invests through multiple platforms, owns property or has transactions involving related parties, the accounting process may require additional documents and review. The scope and fee may vary depending on the complexity of the fund and the records available.

Property, borrowing and changes within the fund

SMSF property and limited recourse borrowing arrangements can introduce additional accounting, legal and compliance considerations. Compact Accounting may assist with the accounting treatment, record requirements, tax reporting and administrative coordination relevant to an existing arrangement.

However, the decision to acquire a property, use an SMSF borrowing arrangement or make a particular investment requires advice beyond routine accounting and tax compliance. Legal documents and ownership structures should be reviewed by a suitably experienced lawyer, finance should be addressed by an appropriately licensed professional, and personal financial advice should be obtained from a licensed financial adviser where required.

Changes to members, trustees or the fund’s governing arrangements may also require coordinated legal, registry, financial advice and administrative work. Compact Accounting can address the agreed accounting and tax components and liaise with the other professionals involved.

Important advice boundary

Compact Accounting’s SMSF service does not include personal financial product or investment advice. In particular, the practice does not:

  • recommend whether you should establish, retain or wind up an SMSF;
  • recommend particular investments or develop an investment strategy;
  • advise whether an SMSF property purchase or borrowing arrangement is suitable for you;
  • recommend contribution, pension or retirement strategies as personal financial advice; or
  • compare or recommend financial products.

General accounting or tax information cannot take the place of advice based on your personal objectives, financial situation and needs. Where licensed financial advice is required, Compact Accounting can work alongside your chosen adviser. The practice may also coordinate with lawyers, auditors, actuaries, valuers and other specialists as the fund’s circumstances require.

Identifying issues early

Trustees should raise unusual transactions or proposed changes before acting where possible. Examples include acquiring an asset from a related party, leasing fund property to a related business, using fund assets, changing trustees, starting or varying a pension, making a significant contribution, or entering a borrowing arrangement.

The appropriate response may be accounting or tax guidance, a request for further documents or a referral for legal or licensed financial advice. An early conversation helps identify which kind of advice is needed before the fund is committed.

Discuss your SMSF accounting requirements

If you have an existing SMSF and require annual accounting, tax, audit preparation or related administration support, contact Compact Accounting with a brief outline of the fund, its investments and the current status of its records. We can then determine the appropriate scope and whether any other adviser should be involved.

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