5 Ways To Bring Down SMSF Audit Fees

Have you ever felt that SMSF is a burden? Not all the time! But when it comes time for your fund’s yearly compliance and financial audit, the costs can seem to rise sharply above your head and be overwhelming. And, one of the main responsibilities of the SMSF trustee is to arrange for a high-quality audit of the fund at a low cost. Learn 5 ways to bring down SMSF Audit Fees by reading this article.

What Is An SMSF Audit?

Your SMSF must undergo a financial and compliance audit each financial year to ensure it continues to adhere to Australian Taxation Office regulations (ATO). The audit must be finished before you file the annual tax return for your SMSF

A financial audit and a compliance audit are the major parts of an SMSF audit. According to Australian Auditing Standards, the financial audit component examines the fund’s financial statements (ASAs)

Any licensed and authorised SMSF auditor that the trustee appoints must conduct an SMSF audit (s). Additionally, the ATO must audit the auditor. You cannot audit your own SMSF fund or the fund of a member of your immediate family.

5 Ways To Reduce SMSF Audit Fees Are As Follows:

Understanding the audit process thoroughly is the most excellent method to save costs associated with the audit of your SMSF. The more knowledgeable you are, the more actions you may take to guarantee that the audit is completed swiftly and effectively. So, you know what is SMSF Audit now is the time to know 5 ways to bring down SMSF Audit Fees. 

• Give Proper Documentation

In order to ease in the preparation of the financial statements and after the audit, make sure you give proper documentation.  Include any property and/or member insurance plans. At the very least, insurance plans must reflect the fund’s beneficial interests.

•  Hiring A Skilled Auditor

Although, you would have expected this, hiring a skilled auditor might be the best option. Also, you would imagine paying more for the expert, you will really be subject to the super-tax accountants’ median price structure. So, as we mentioned earlier, some preparation would be helpful. An experienced auditor is quick and knowledgeable about the evolving laws and regulations. They can quickly spot errors that need fixing.

• Create an Annual Investing Plan

Make a careful annual investment plan and stick to it strictly.
If percentage ranges for different investment types have been defined, they must be followed to; otherwise, the investment plan may need to be modified with proper cause.
keeping a record of all decisions made by the trustee, particularly those that differ from the investment strategy or contain investments that would be called “marginal”.

• Keep It Simple

Keep it straightforward and talk about the audit needs in advance with your SMSF counsel. Also, before you proceed with the transaction, find out how much more the foreign options or unlisted investment would cost you in administration and audit fees.

• Engage Yourself With Detailings

Keep your reporting deadlines; failing to do so could cause complicated problems to grow. Engage your fund in the discussion. You are ultimately in charge, so don’t just sign paperwork without truly understanding what it all involves.

We hope this blog of 5 ways to bring down SMSF Audit Fees has bought clarity to your mind. Feel free to get in touch with OrangIQ and chat with one of our taxes or audit professionals to solve any issue regarding the audit of your SMSF.