For SMSFs, it is significant that all their transactions go through the bank account of the fund. There must be an investment strategy in place and it should be compliant with the ATO guidelines. With this is mind, any such strategy is to be declared beforehand.
Inform your accountant about your SMSF transactions
If you have made any error in relation to taking out or pushing in your SMSF money, let your accountant know about the goof up and inform him or her about the detail of the account in question. If you are buying or selling an important asset, the accountant must know about it prior to the transaction.
Member falling ill or leaving the country
If you witness a member or a trustee falling ill or leaving the country whether permanently or within a 6-month duration, let your accountant know.
Auditor engagement letters
Be circumspect in handling auditor engagement letters. In no time, they can become a more serious ATO contravention if taken loosely. Be pretty careful about buying from related party, tackling the demands of the Sole Purpose test, and investing in residential real estate through your SMSF.
Bank covenants
If your business comes across banks lending covenant and your auditor has gone through the report in detail, your accountant should not be kept bereft of the knowledge. Furthermore, if there is a breach in the covenant and a loan is withheld, your accountant must secure an entry to that effect.
Are you informing your accountant about the whereabouts of your SMSF account?
