There’s many benefits behind having or starting a self-managed super fund (SMSF).
These often revolve around the choice and flexibility of investment options, tax strategies, consolidation of assets and transparency. However, there are risks worth thinking about when it comes to SMSFs which concern their cost-efficiency, the time and effort it takes to maintain them and the option of outsourcing them.
Today at Crest Accountants, we’ll be exploring the latter, that is, what you need to know about outsourcing your SMSF, and the risks that are involved.
Interested? Read more from your Gold Coast Accountant to learn more.
What are self-managed super funds?
A self-managed super fund (SMSF) is a private super fund that is managed by the holder.
- They are unalike general retail and industry super funds, and
- The holder chooses the investments and insurance.
Accountants often provide advice and assistance with the handling of a SMSF, and increasingly, work is being sought from offshore services. Sometimes, this is without the client knowing.
The pros and cons of outsourcing
The beauty of the internet allows many people to work remotely, be that in the same state as the company, nationally, or even internationally!
Offshoring or outsourcing, is becoming increasingly popular for many professional services industries, including financial services.
- Potential financial savings for the company,
- Diminished company outgoing costs,
- Generally, a fast delivery time and turnover, and
- Access to international experts with robust versatility.
Yet, there’s some serious drawbacks of outsourcing work, especially SMSFs.
- Disclosure of personal information and confidential financial statements,
- Increased problems with time zones, language barriers, communication breakdowns and unclear instructions, and
- Security risks due to a multitude of factors like: unsecured PCs, Wi-Fi networks, and computer data storage systems and malicious cyber-attacks,
- No access to qualified tax and financial adviser to discuss issues and opportunities,
- Doesn’t support home-grown, Australian talent and employment,
- Often involves extra work in fixing errors and dealing with the ATO as a result of an audit due to these errors, and
- There has been on many occasions, lost opportunities because of identification and discussion of potential strategies with locally based, expert Tax and Financial advisors.
Essentially, any data and work that is handled, sent and outsourced offshore is more vulnerable in the security sense and considerably more complex to manage. This is compared to a local, Australian-based accounting services firm like Crest Accountants.
Where to now?
If local innovation, secured and confidential data and value-based accounting services are important to you, we recommend working with a personal tax accountant who doesn’t outsource work offshore.
If you have chosen the path of a SMSF, it’s fair to say you like control of your finances, investments and transparency in who is helping you with them.
At Crest Accountants, we specialise in SMSF accounting services, using our local innovation and accounting expertise to help our clients with valued, personalised Super solutions (and more).
Your local accountant helping you with SMSF Strategies
SMSFs and all other personal accounting strategies are thoughtfully handled and managed by our team, right here in beautiful Broadbeach Waters.
That means all of your financial statements, data and personal information is secured safely within our rooms on the Gold Coast.
At Crest Accountants, we focus on:
- Transparency and trusting client relationships,
- Finding and maintaining the right Super fund strategy for our clients, and
- Valuable accounting work and advice to help our clients with their finances.
Your trust in us is as important as the valuable super fund strategies and other tax accounting services we provide.
Ready to explore your Super options? Contact Crest Accountants today for personal accounting solutions from a team of Gold Coast tax accountants.