If you are running a business then you are well-aware that how tricky the yearly tax reports can be. Even though the Australian government have enabled people to run a self-managed superfund but there is one thing which they have kept mandatory. And that is to ensure that the person with SMSF is approved and audited by a licensed professional annually in order to ensure that there are no trust breaches in between and scams. For those who are not familiar with the topic, all of this may sound tricky, and some may not even have a clue that what auditing is. So for those who are wondering, auditing is conducting a yearly inspection in order to give the report to the government of the company about their yearly losses, profits and how much tax they owe to the government.
Although, now people have the convenience to prepare that report on their own known as SMSF auditing, but it is still necessary to get it approved by a licensed professional to check for any sort of discrepancies that should potentially be reported to the government. So why you should get an auditor? If you are wondering that then let’s see some important reasons for it below.
Financial Compliance
Depending whether you run a public or a private company, you need to provide an audit report to the investors or to the government. SMSF auditing helps in ensuring whether the company is in financial compliance and is a sound condition or not. Auditing helps in determining the overall revenue of the company, the deals it has made, and its profit and loss in a year tenure. This also helps the government decide that how much tax is to be paid by the company and ensures that things are kept on track.
Company Liabilities
One other important reason for SMSF auditing is that it helps in knowing the liabilities of the company. This is particularly important for private companies who have a lot of investors. Auditing helps in notifying the investors whether the company is financially stable or not in order to help them determine whether they would like to work forward in the future.
Reporting Discrepancies
SMSF auditing when done by a certified auditor also helps in determining any sort of discrepancies in the company. The audit report tells if anything is missing and whether there may be a cause of fraud or not. That is why in order to know if the company of complying with the law, an audit report is necessary for it to continue expanding.
Auditing is a complex process and requires a lot of calculations, that is why it is important that it should be done annually by a professional, so if you are looking for cheap SMSF audit then head on to Super Audits today.