Why It Is Important To Audit Superannuation Funds?

A superannuation is organizational pension program that are design by company for the wellbeing of its employees. It also called as company pension plan. Funds which are deposited in in superannuation account will mature without any implication of ta, till withdrawal or retirement. A lot of Australians have set up self-managed super funds to regulate their retirement funds. The rewards of this method depend on your conditions and abilities. Upholding a SMSF requires wide-ranging financial and legal knowledge.

Many companies provide numerous retirement assistances to their employees also due to legal mandate or voluntarily to hold employees for longer period of time. These retirement assistances contain provident fund and national pension system. It is type of benefit which is provided by the employer to their employees after retirement.

Reasons of popularity of superannauation funds:

Superannuation fund getting popular day by day. Because of its cost effectiveness and to have your own fund. For many people superannuation funds may be more beneficial than other funds. Members have the authority to control their own fund.

According to research conduct by ATO, from 2012 to 2016, there is 6% increase in number of SMSF accounts annually. While SMSF is great way to control your funds and to have some funds after retirement. But it is also complicated and time consuming.

Pros and cons of managing SMSF:

Pros:

  • Total financial control: With SMSF only you have the authority to control your funds. And you have the charge to where you want to invest your funds. If you have an asset like property you can invest there.
  • Tax benefits: You have the chance to take benefit of certain tax benefits when managing SMSF.
  • More freedom to invest: You have all the financial control over your SMSFs funds. You will have variety of option for investment like commercial or residential property, cryptocurrencies and gold, silver, and cash deposits etc.

Cons of managing SMSF:

  • Time consuming: Management of SMSF can be time consuming. It is your duty to organize the performance of your savings. For retirement, you are responsible to find suitable investment options. Because different level of time and attention is required for different types of assets.
  • Requirement of investment knowledge: If you are not having any satisfactory knowledge about investment or time to operate your fund which will be very difficult and risky when managing your fund. Do your research on all investment options.
  • Additional cost: Additional cost can occur when you are managing your fund. Most of the SMSF auditing and accounting services can charge you extra cost. Like property assets will charge you legal fees and stamp duties. For each type of investment there are additional costs. If your SMSF is not following with ATOs laws and guidelines than you can face legal fees and fines which are very costly.

Conclusion:

Always choose a company who has good reputation in market to avoid from any kind of financial losses and wastage of time. Well super audits have experienced and qualified auditors which will fulfill your auditing requirements at very affordable rate.