There comes a point in every busy practice when your people are fully booked and new SMSF work keeps arriving. An outsourcing firm can take on the preparation, but handing over your clients' funds is a decision to make carefully. Check that the provider has done this kind of work before, and does it accurately.
Here are six questions to ask before you send any work.
1. Do you specialise in SMSFs?
Ask this first. You don't want a general bookkeeping service. You want a firm with real experience preparing self-managed super funds, in the software your funds already use.
2. How do you make sure the work is accurate?
Ask how each fund is checked, and what qualifications the people preparing it hold. Check their registrations on the public registers, such as the Tax Practitioners Board register. Don't rely on promises: get the key points in writing, and ask for a sample of their workpapers with client details removed.
3. Will you work to our terms?
SMSF work involves your clients' personal and financial records, so confidentiality matters. The provider should agree to your firm's terms on privacy and on contact with clients. A good provider never contacts your clients directly.
4. What do you charge?
Ask plainly what each fund will cost, and whether the fee changes with the fund's size. A clear answer up front saves an awkward conversation later.
5. Are there any other costs?
Some firms find that outsourcing costs more than they expected because of charges nobody mentioned. Ask about set-up fees, actuarial certificates and anything else that might be added.
6. When will each fund come back?
Ask how long a fund takes once you've sent complete records, and get it in writing. For us, most funds come back within a week of receiving complete records.
To see how we answer these questions, read our packages and fees and how we work, or ask us for a sample.