What Does an SMSF Accountant Do?

An SMSF has financial-statement and reporting obligations. An accountant’s engagement may include reconciling transactions, preparing the annual accounts and preparing the SMSF annual return. Ask the business to identify the outputs you receive and who performs any tax-agent work.

The process needs evidence. A balance shown in software does not explain why a payment was made or who owns an asset. Ask how the accountant identifies missing documents, resolves differences and brings questions back to trustees. Agree how you will review the finished documents rather than treating a signature request as the first chance to see the work.

Good records support the fund’s accounts and annual audit. Ask for a document checklist that fits your fund and a secure way to supply it. The accountant may want transaction statements, investment records, invoices and documents supporting member activity or trustee decisions; confirm the actual requirements with them.

Discuss the timing as well as the format. A provider might collect information throughout the year or start after year-end. If you use data feeds, ask which records still need to be supplied manually and who checks that the feeds are complete. Keep a way to retrieve important documents independently of a single employee’s inbox.

Ask whether the accountant prepares the audit file, arranges contact with an auditor and answers audit queries. These services can be useful, but coordination is distinct from carrying out the independent audit. Confirm the auditor’s identity and how their fee is handled.

Agree who tells you when an audit query needs a trustee response, who keeps the final report and how any outstanding matter is followed up. Avoid a service map that simply says ‘audit included’ without explaining the people and documents involved. You should be able to identify where the accountant’s work ends and the auditor’s work begins.

Tax and accounting help should not be treated as permission to make an investment decision. If you need personal financial advice, check the proposed adviser and relevant authorisations. A business may offer more than one service, but you should know which professional is acting in each role.

Ask how the business deals with a question outside the agreed scope. Can it explain the boundary, refer you to another professional and coordinate information with your consent? Legal documents, advice and specialist assessments may involve separate engagements. Do not assume they are covered because the provider uses the word ‘comprehensive’.

Request a simple timetable: when records are requested, when draft accounts are expected, when the audit is arranged and when you need to approve documents. Confirm the actual dates with the provider for your fund rather than relying on a generic calendar.

Use the engagement meeting to divide tasks. One person should know who follows up each outstanding item, but all trustees should understand the arrangement. An accountant is part of the fund’s support system; trustees retain ultimate responsibility for its operation.