As any accounting-minded person would know, recording keeping is essential. This is especially the case if you are a trustee of a Self-Managed Super Fund (SMSF). One of your main responsibilities as a trustee is to keep proper and accurate tax and super records to manage your fund effectively.
As a trustee, you should take note of all investment decisions including; why a particular investment was chosen and whether all trustees agreed with the decision.
It’s important to keep accurate records, if you are one of the fund’s trustees and you invest the SMSF’s money in an investment that fails, the other trustees can potentially take action against you for failing to be diligent. However, if everything was recorded and signed off by the other trustees, you will have a record to show the other trustees agreed with your actions at the time.
When it’s time for your SMSF to be audited, you need to make certain records available when they audit your fund each year. You will also need to provide up to date records to the ATO when required.
If you have a SMSF or are a trustee, you need to keep the following records for a minimum of five years:
- Accurate and accessible accounting records that explain the transactions and financial position of you SMSF.
- An annual operating statement and an annual statement of your SMSF’s financial position.
- Copies of all SMSF annual returns lodged.
- Copies of any other statements you are required to lodge with us or provide to the other super funds.
You also need to keep the following records for a minimum of 10 years:
- Minutes of trustee meetings and decisions (if matters affecting your fund were discussed, for example, you reviewed the fund’s investment strategy).
- Records of all changes of trustees.
- Trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007.
- Member’s written consent to be appointed as trustees.
- Copies of all reports given to members.
- Documented decisions about storage of collectibles and personal use assets.
It’s extremely important to keep accurate and up to date records, otherwise you may face penalties for non-compliance. These penalties vary in severity but are best to be avoided.
If you have any questions about record-keeping requirements for SMSF’s, please feel free to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
