One of the biggest benefits of having your fund is control over what happens to it and where it goes. SMSF – or Self-Managed Super Fund for short – is a privately managed super fund that allows you to choose insurance and investments.
But dealing with your SMSF can be hard work, and perhaps you are considering hiring an accountant in Sydney to fill the forms out on your behalf.
Indeed, leveraging SMSF administration services can make your life easier, but like other solutions, it has its set of disadvantages.
In this article, we’ll discuss the pros and cons of hiring an SMSF administrator to determine whether or not this solution suits your needs.
The Pros of Hiring an SMSF Administrator
Running your fund can take up too much of your time and effort. As much as possible, you would want your focus on formulating investment strategies and increasing returns, so why not delegate all the administrative tasks to a reliable firm?
One of the biggest benefits of partnering with an SMSF administrator is the time you’ll save. SMSF administrators can take over managing all the paperwork and administrative tasks, freeing you from the stress of handling those mundane tasks.
SMSF administrators also ensure you remain compliant with the ATO and minimise taxes. These third-party partners are knowledgeable in various tax laws and can update you on changes in legislation.
An administrator can also assist you in auditing, one of the most crucial steps in managing your SMSF. Fund accounts preparation, asset valuation, and annual audit are paramount before lodging an annual SMSF tax return, and an administrator will complete your audit while preparing and updating your fund’s trust deeds.
On top of work optimisation and compliance, SMSF administrators can also provide professional guidance on creating an effective investment strategy. They can ensure you have support every step of the way.
The Cons of Hiring an SMSF Administrator
Managing your fund can get expensive, so adding more costs – such as services – may be hard on your finances.
Perhaps the most significant drawback of partnering with an SMSF administration firm is the added cost you’ll incur on top of your regular SMSF fees. The prices you have to pay for an administrator may vary depending on the type of fund you have, so it can be beneficial to round up some quotes before settling with one.
It is without a doubt that the pros of hiring an administrator for your SMSF outweigh the cons. The only drawback of partnering with a thirdparty is the additional expenses, which can be manageable if you hire the right expert.
If you need assistance in managing the administrative demands of your SMSF, consider contacting DFK Laurence Varnay today.