SMSF Outsourcing

SMSF Audit & AdministrationMany people think of self managed superannuation funds as DIY super, but they can be anything but.

Running an SMSF is not an easy task, but thankfully there are plenty of outsourcing solutions which can make the process easier.

Why Outsource?

There are plenty of reasons why people outsource certain aspects of their SMSF management.

Often outsourcing is done due to a lack of specialist skills held by the trustees and members.  Most trustees and members do not have sufficient skills or qualifications to manage the compliance issues affecting an SMSF.

Investment decisions and SMSF strategies are also often outsourced in order to gain access to the expertise and knowledge of qualified financial planners, investment advisers and stock brokers.

The ability to outsource certain functions can help to ensure that your SMSF runs smoothly and successfully.

What Can Be Outsourced?

Almost all aspects of establishing and running an SMSF can be outsourced.  Some of the commonly outsourced functions include the following:

  • Initial setup
  • Audit & tax returns
  • Compliance management
  • Investment decisions
  • Execution of buy and sell orders
  • Borrowing
  • Winding up

There are various service providers and other professionals who can assist with outsourcing of this nature.  Many firms have in fact been setup with the sole purpose of handling such outsourcing for SMSFs.

Some functions of your SMSF must be outsourced.  An SMSF audit for example must be outsourced to a suitable accountant or other qualified person.

Mortgage brokers are often used for outsourcing the work required in establishing SMSF loans for their clients.

Is Outsourcing Right For You?

Virtually all SMSF trustees and members can benefit from some level of outsourcing.

Some aspects of the SMSF process, such as audit and tax return lodgement must be outsourced to a qualified person.  Other aspects, such as investment decisions and execution can also be outsourced to a financial planner or stockbroker.

Whether or not you should outsource parts of the SMSF process really depends on your own skill, interest and availability of time.  If you have the skills, interest and spare time, then running as much of your SMSF as possible can be a rewarding experience.

If on the other hand you don’t have all of those things, then outsourcing could be the best option for you and any other fund members.

Better Off Without An SMSF?

If you find that you’re having to outsource all of your SMSF administration and investment functions, and you don’t have a particularly fund balance, then you may find that you’re better off without an SMSF.

An SMSF can be a great way to take control of your super and boost your retirement savings, but you need to be doing it for the right reasons.

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