A lot of people in Australia have been leaning toward the new trend of managing their pension funds by themselves. This move has spread in many parts of the country as people feel that they are better off controlling their retirement funds.
The previously used method of entrusting pension funds to investment banks is losing popularity as more and more people embark on managing their superannuation funds. SMSFs (Self- managed super fund) is a sector that has recently emerged and has gained a huge following.
Due to introduction of automation and the need to be current, SMSF managers or trustees are opting for online management of the funds. This is a more accurate and efficient way of managing a superannuation fund.
How to manage a super fund online:
- The process of managing any SMSF online involves identifying a web application that is made for that purpose.
- There are many vendors who have put out online kits or tools in the market, and it is up to the discerning funds manager or trustee to choose wisely and select a product that will be a good value for the money.
- The trustee or funds manager should deal with brands that are known and that have a good reputation for aftersales service and customer care.
- There should be a warranty as well as guaranteed upgrades whenever necessary.
Advantages of DIY SUPER ONLINE
Ease of setting up the fund: The trustee or fund manager will be able to set up the SMSF fund once the 4 trustees have agreed on their online tool of choice. The online DIY SUPER will be used to automate all the activities of the fund members as well as record their respective contributions.
Control of the fund: A trustee who is directly involved in the daily running of the Superannuation fund will have control over all that is happening, all he has to do is use his web based application and get on with investing and analyzing the markets.
Accurate Financial Reporting: Using online tools to manage a superannuation fund gives the trustee an accurate report when he does the annual financial reporting. The tool gives a proper account of all the financial transactions that have taken place; it records members’ contributions and all debits and credits. The online tool generates a correct balance sheet by recording profit and loss, movement of funds, or deposit of funds.
Using online tools makes the trustee more experienced in managing the fund and he may very well succeed without the need for expertise from outside. In most circumstances, the online tools provider is directly networked to an accredited bank where the SMSF funds are deposited. This makes the work of reporting and tax matters even more accurate since the bank’s records will always correspond with actual financial movements done by the SMSF.
Innovation: A trust manager who embraces an online style of management is innovative and will be ahead whenever new products and tools are introduced into the SMSF industry.
Tax Returns: Like the financial reporting requirement, Tax returns are mandatory. The trustee prepares the tax due and does the dislodgement. Tax preparation is done in an easier and more accurate way when one uses online tools. DIY SUPER Online is innovative and responds to the prevailing trends in management. Using a DIY super online kit makes a manager file tax returns in good time to avoid possible penalties. Financial reporting and filing of taxes is part of the SMSF compliance requirements.
Security: A trustee or fund manager using an online web application will never have to worry about the possibility of losing valuable data which contains the SMSFs activities as well as members’ investments. There is no way the portfolio can be visited by anyone except authorized SMSF members.
Support: The trustee should ensure that he deals with a firm that is available to talk on the telephone, just in case the online tools fail to function or he comes across an application that may be complicated. Having a reliable support team will make the work of DIY super online much easier for the trustee. In this regard, it is crucial to obtain the online tools only from trusted sources. Technical assistance and back-up support is important in the unlikely event that the online tools fail to function as expected.