CHEAP SMSF ACCOUNTING IN SYDNEY [Step by Step Best Guide]

By November 15, 2021 Blogs

SMSFs are becoming more popular with professional couples and self-employed singles. With over 900,000 funds growing by 3% a year, it is a choice that many people are making for investing in Bitcoin, cryptocurrencies, gold, and diamonds.

It’s important to remember that not all SMSF providers are alike. There are three types of providers

1) Traditional Accountants 

2) Online providers and apps

3) Larger, institutionally owned and controlled providers 

Let us look at the cost of operating an SMSF, which is the key ingredient when looking for cheap SMSF accounting.

1) Accountants charge anywhere from $1800 p.a including an audit to $5,500p.a based on fund value, number of transactions, and complexity.

2) Online providers start at $990 and go up to $2200 pa with a fixed fee offering or a fee based on add-on of assets. Most offer email and chat support with no phone support.

3) Larger listed and non-listed groups, who charge upwards of $2,990 – $6,600 including phone, email, and concierge-like support.

Which is the best option to choose Cheap SMSF Accounting?

Well, for younger couples and singles Cheap SMSF accounting is a great starting place.

Providers like My SMSF who charge $1,100 p.a including tax, audit, and support, and an app with tools are well suited to tech and app savvy busy professionals and small business people, who value cheap SMSF accounting, consistency, efficiency, and good support.

Cheap SMSF Accounting services like My SMSF help many Australians enter alternate and uncorrelated asset sectors like Bitcoin and cryptocurrency, Gold, Silver and Metals, and Pink Diamonds and collectible investing. Traditionally these asset classes were seen as obscure and risky and as consequence accountants and other providers have charged fees according to these perceived concerns.

My SMSF has built a history of supporting SMSF investors who invest in bitcoin and cryptocurrencies and Gold bullion in an SMSF as well as Pink Diamonds.

By ensuring that assets are held in independent storage, insured, secure, and valued, we have been able to lower our costs for these services, where traditional accounts would charge $3,300 per annum for these alternate assets in an SMSF.

Cheap SMSF accounting can provide a valuable entry point for many Australians considering setting up and operating an SMSF, who have been otherwise detracted by high setup and ongoing fees by different providers.

SMSF members aim to grow their retirement nest egg by adding alternate assets such as Bitcoin, cryptocurrencies, Gold and Pink Diamonds in their SMSF to help diversify and hedge against conventional market risks which are reported to be more prevalent, and cheap SMSF accounting can be a great enabler for SMSF members that have the diligence to their investment research and have the time to oversee their funds administration along with accepting the added responsibilities which are seen as risks to many.

SMSF Bitcoin and Cryptocurrency Checklist:

 Here are some things to check before investing in crypto-assets, in an SMSF:

  • SMSF deed allows crypto investing
  • Update the fund’s investment strategy
  • Make sure your SMSF has a separate cash account and a separate SMSF Crypto exchange account in the name of the SMSF
  • Check with the SMSF administrator or accountant, has experience of at least 2 years of cryptocurrency SMSF accounting

Setting up an SMSF Steps:

  • Come up with a name for your fun and trustee company.
  • Most SMSF members use their surname and first name initials to name their SMSF.

Eg: S & K Heel Super Fund 

  • Trustee Company -Usually most SMSF members use the same name as the SMSF name Eg: S & K Heel Super Fund Pty Ltd.
  • An SMSF trust deed is required and your SMSF administrator normally includes this document, with the setup fee.

For existing SMSFs, you may need to update your SMSF deed and the fund’s investment strategy and ensure you are familiar with crypto investing requirements along with the annual administration requirements. Your SMSF administrator or accountant will guide you on the remaining steps.

FAQS:

Can an SMSF Invest in Bitcoin?

The super laws do not specifically restrict investing in crypto, however, all investments must be consistent with the sole purpose test, which requires members of SMSFs to invest in assets that are suitable to obtain capital gains and income for the SMSF having considered all members risk appetites.

As long as the fund deed allows investing in crypto and the fund’s investment strategy is updated to reflect cryptocurrency, then the members of the fund can invest in Bitcoin via their SMSF.

Why are there so many Jargons and concepts with Bitcoin and the Risks?

  • Many complicated and foreign concepts, such as wallets, private keys, blockchains, chain splits, gas, mining, staking are terms that may be unfamiliar to members and often their accountants.
  • Price volatility and extreme price movement between 3% – 15% in 5 minutes to an hour, can unsettle the most seasoned investor.
  • Bitcoin is not tangible, has no asset backing it; nor does the Australian dollar by the way; and it is not managed by a ‘reputable’ financial institution, which is a concern for a lot of older Australians.
  • Tax laws and regulations may change, which may impact your crypto investing goals.

Is Cheap SMSF Accounting Risky?

Cheap SMSF accounting providers usually reduce their costs by using better systems, technology, and improved efficiencies with lower operating overheads that allow them to provide these services at a discount price. There is often no compromise in standards or quality, although it is fair to say that for small business people with companies, trusts, and SMSFs, a single accountant might provide more value and overall expertise. With specialists in most fields, be it medical, law, or advice, SMSFs are no different. SMSFs straddle two laws, the super laws and tax laws and providers in this space need the experience and knowledge, and systems in both areas to deliver cheap SMSF accounting services.

CONCLUSION:

Cheap SMSF Accounting can help many smart savvy Australians enter the SMSF sector to manage their retirement nest egg to hold physical assets such as property, bitcoin, gold, and pink diamonds. These are assets that are restricted or not invested into by most retail and industry funds.

 

Cheap SMSF accounting lowers the barrier to entry previously set by large SMSF providers to allow everyday Australians the opportunity to own and control their assets by exercising choice.

Identifying experienced and knowledgeable SMSF providers will save SMSF members a lot of time, cost, and stress. Specialists like My SMSF are always the best option for SMSF crypto investing.

 

Always seek good advice or complete detailed research on the risks and responsibilities with SMSFs, before setting one up. The rewards of good returns in an SMSF can be attained, for those that are diligent, responsible, and not time-poor.

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