If you have a self-managed super fund (SMSF), you will have to go through a number of financial and compliance checks, especially around tax time. SMSFs may qualify for tax breaks on their capital gains, but only if they comply with certain rules.
What is an SMSF audit?
SMSF requires an audit every year before an annual tax return can be filed. SMSF audits are conducted by ASIC registered auditors whose job is to verify that your financial statements are correct and that your funds comply with key laws. For more details about the Self Managed Super Fund service, you can simply browse the web.
SMSF audits also provide you with valuable information about how your funds are tracked. The auditor will provide you with a commitment letter outlining what they will do during the audit.
When do you need an SMSF audit?
The ATO recommends that an annual review of the SMSF be required before the annual report can be submitted. There are several important steps you need to take to ensure you meet the deadline.
The ATO website requires you to appoint an SMSF verifier at least 45 days before filing your annual return. If the declaration is not delivered on time, a fine will be imposed.
Another reason why your SMSF audit should be completed before you submit a SAR (SMSF Annual Report), according to the ATO, is that you need information from the audit report to complete the SAR. You must also ensure that the SAR provides the examiner with correct information, otherwise, you may be penalized.