Recent reports from the Australian Taxation Office have shown that the number of self-managed super funds (SMSF) operating in the country have reached approximately 500,000. And projections show that this number will greatly increase in the future as more and more SMSFs are being established every year.
The increase in SMSFs has an overall positive effect on the economy, but the paperwork and compliance tasks involved with handling them can be quite burdensome for firms all over the country. This is why most companies decide to outsource these tasks to SMSF admin services for a more efficient process.
However, despite the advantages of SMSF administration services, some business owners still hesitate to acquire this service due to false beliefs.
Here are three common misconceptions regarding SMSF administration services.
SMSF Administration Services are Expensive
Some individuals hesitate in hiring SMSF administration services because of the common misconception that it is expensive. However, this is not the case. It is relatively inexpensive compared to keeping SMSF tasks in-house.
Performing SMSF tasks require the appropriate software, which is expensive compared to other software in the finance industry. In-house SMSF management increases overhead costs because you will have to pay for maintenance services to keep the system updated, and hire technicians to operate the software.
Fortunately, SMSF admin services provide a better alternative. Outsourcing your SMSF tasks means that your company no longer needs to invest in specialized software to manage it as it will be provided for. Operational costs won’t be that high since you don’t have to pay for maintenance services, and you no longer need to hire in-house technicians.
SMSF Administration Services are not Effective and Efficient
Another common misconception regarding SMSF administration services is that it is not as effective and efficient compared to in-house SMSF management. This is not true. SMSF administration services are composed of professionals who are experts in the field. They can deliver quality and exceptional work because of their experience.
Keeping your SMSF needs in-house is an inefficient and ineffective process as your current employees would need to learn SMSF-related tasks to perform them correctly. Without the proper experience, your team can commit a lot of mistakes that not only causes downtime but also increases expenses as well.
Keeping Up With Regulatory Changes Will Be Harder
Financial instruments are well-regulated in the country, and SMSFs are no exception. SMSFs are governed by several guidelines and policies that are dynamic because of regulatory changes. Some individuals believe that outsourcing SMSFs tasks make it harder for a company to keep up with legislative changes. However, this is not the case.
SMSF administration services are composed of competent professionals that have a vast knowledge regarding regulatory chances concerning SMSFs. When you outsource your SMSF tasks, you no longer have to worry about legislative changes as you will always be updated.
Also, SMSF outsourcing services will help you avoid penalty fees or sanctions imposed by the authorities if you do not follow regulations.
Also Read: How to Raise Funds for Business Expansion?
If you are having problems regarding your SMSF tasks, don’t let the misconceptions mentioned above hinder you from outsourcing your SMSF needs. Outsourcing will save you a lot of troubles, and provide you with more resources which you can allot to other aspects of your company. Check out a trusted and reliable SMSF administration service today!