Managing an SMSF can be tedious, given the ever-changing regulatory environment, the need to maintain accurate records, and increased cybersecurity threats. However, engaging professional support, outsourcing repetitive back-office work, and training employees in Australian tax laws and regulations will help ease the administrative burden and improve operational efficiency.
Additionally, why are more businesses and accounting firms choosing to outsource their back-office SMSF tasks? Let’s examine the benefits they enjoy when they opt for outsourcing.
· Cost effectiveness – When a business or accounting firm decides to outsource its SMSF services, it can significantly reduce the costs associated with hiring, training, and managing in-house employees. If the SMSF administration and audit tasks are not outsourced, it can add to the cost of managing an SMSF, affecting its profitability.
· Access to expertise – Professionals with extensive knowledge in the SMSF landscape are employed by the offshore provider you choose to outsource to. This enables them to provide expert advice and strategic insights on managing Self-Managed Super Funds (SMSFs).
· Increased focus on strategic activities —Outsourcing back-office tasks in SMSFs enables businesses or accounting firms to focus on activities that add more value to their business, such as client-centric initiatives.
· Scalability – Outsourcing provides the benefit of scaling up resources when services are in high demand, such as during peak periods or when the fund needs to be prepared for an audit. This eliminates the additional load of hiring new staff to keep up with the temporary demand.
· Reduced risk – As the SMSF landscape is highly regulated to prevent malpractices, outsourcing helps maintain compliance under the evolving regulatory landscape. This avoids penalties and hefty fines for the fund.
Here’s how we helped one of our clients overcome operational challenges in SMSF lodgements and focus on client business development.
