Solutions for Financial Planners

Opportunities for Financial Advisers

** Under no circumstances will SATO SMSF Administration® contact your clients, whether that be by phone or email. All outstanding queries regarding completion of fund financial statements and tax returns will be raised and resolved with the financial advisory group. This policy ensures client relationship remains with referring financial planners. 

Self managed superannuation funds present significant opportunities for financial planners to increase their service offerings. These include but are not limited to:

Income protection;
Life insurance for members of the fund;
Total and permanent disablement cover for the members;
General insurance for investment properties;
Drafting an effective investment strategy;
Annual review of the investment strategy;
Master trusts;
Wrap accounts;
Managed funds; &
Direct equities. 

The above spectrum provides ample opportunities for financial planners to build on their relationships with clients, as well as network with solicitors, accountants and other related professionals.

Available Outsourcing Solutions

SATO SMSF Administration® is one of the leading self managed super funds administrator in Australia with clients in Melbourne, Sydney, Brisbane, Adelaide and Perth. We administer hundreds of funds which helps our clients to save on their annual costs and acquire a scalable back office. Our business model is one of partnership – we tailor our solutions to your organization’s unique processes. Our goal is to take the administrative tasks and burden off your hands, leaving you time to focus more on client contacts –“critical to quality” issues and advisory tasks. We have dedicated teams with expertise in taxation and, superannuation and accounting. We have team members familiar with a variety of software including but not limited to Macquarie Wrap, BT Wrap, Handy ledger and Handi-tax.

Benefits of outsourcing your back office

  • Scalability: our access to a pool of trained resources gives you the ability to “scale” the number of clients and work without worrying about finding staff;
  • Cost Reduction: outsourcing allows reduction in operating costs by 30%;
  • Paperless Office: documents are scanned and stored electronically with originals returned to clients;
  • Electronic Audit Files: ASIC registered auditors can access files from any place, any time and complete their annual audit programs “online;”
  • Increased Accuracy & Efficiency: testimonials from clients show that, once systems are in place, our services often deliver improvements in accuracy and efficiency over their current arrangements;
  • Reliability: our scale allows us to ensure backup staff and resources are always available, so we can ensure delivery of your work as outlined in the service level agreement; &
  • Time Zones: time zone differentials can work advantageously. Work submitted to our company in the morning is performed overnight and is ready the next morning.

Where our organisation is appointed to provide outsourcing solutions for financial advisers, our proposed service level agreement is flexible to accommodate all your back office requirements. As a suggestion, this would include but is not limited to:

  • preparation of fund financial statements;
    preparation and lodgment of fund tax returns and MCS statement;
    Drafting of annual minutes to meetings for trustees and associated documents to ensure fund compliance;
    Collation of documentation and paperwork to assist with the fund audit program;
  • Scanning of all documentation presented in CD format;
  • Fund establishment/windup;
  • Pension commencement with associated minutes of trustees meetings
  • Auditing of funds (additional service)

The service level agreement would involve the following steps

  • Clients send source documentation to financial advisers;
  • Financial advisers would post documentation. Our company would commence data entry into accounting software. Any missing documentation would require our company to conduct research on internet. If queries cannot be resolved email would be sent to financial advisers to follow up with client;
  • Emails back and forth between our company and financial advisers would occur until all transactions within the self managed super funds can be substantiated by way of documentation. This should satisfy the annual auditing requirements;
  • Once data entry has been completed our company would conduct final review of fund tax return, financial statements and any associated minutes of meetings;
  • Our company would post CD to financial advisers. CD would contain templates for all calculation supporting income tax calculation and scanned documentation. This would enable staff at the financial advisory to review preparation of fund prior to lodgment; &
  • The above arrangement would enable financial advisers to maintain client relationship with existing client base and enjoy the more profitable and lucrative aspect of the work.

It is envisaged that only 1 draft would be necessary as our company has custom-built templates to ensure data entry integrity and accuracy are maintained as part of internal controls and self-review. This ensures financial advisers only have to spend 1-2 hours to peruse through accounts prepared prior to lodgment. This ensures maximum efficiency.

The above arrangement is based on data entry and preparation of fund tax returns and financial statements.

Another option worth exploring is to have SATO SMSF Administration® also act as fund auditors. Under this arrangement our company would fulfill the annual auditing requirements as processing of the fund would constitute 100% sampling of all transactions. This enables greater insight into the internal controls of the fund to ensure full compliance with SIS Act and other relevant legislation.

Auditor independence would still be maintained as the financial adviser would play a more influential role in managing the fund and our company has no involvement in the day-to-day decision making for the fund.

Another advantage under this arrangement is the auditor’s management representation letter and report would be provided immediately upon completion of the fund’s tax return and enable immediate lodgment without further delay.

Under traditional arrangement the full set of accounts need to be presented to external fund auditors for review and approval prior to lodgment of fund tax return. The legislation requires the audit report be presented to trustees at least 1 day prior to lodging the return. This traditional method may result in further delay and missing important lodgment deadlines.

The financial adviser would be able to gain access to our in-house proprietary such as pension calculators e.g. AP, Market Linked Pension, Complying Pensions and Account Based Pensions. In addition, tax reconciliation template has been custom designed to replicate accounting software ensuring data integrity and accuracy are maintained even for the most complicated funds eg. GST BAS/IAS reporting and distributions from managed funds.

Audit fees would be paid by clients: This results in savings accruing to the financial planners. This arrangement provides a streamlined approach to fulfilling and meeting all reporting deadlines without any hassle or delays.

SATO SMSF Administration® would be able to provide insight and knowledge into specific fund issues and pre-audit opinions, as our company has gained extensive knowledge of self managed superannuation, not only of data entry, accounting software, but also strategic audit issues and interpretation of the SIS Act (if requested).

The turnaround time could be set at two to four weeks to provide some flexibility for unexpected circumstances. Provided that the client has handed in all necessary source documentation there is no reason why our organization could not finalize a set of accounts for a fund within one week and have the CD sent back to the financial planner’s office for final review and lodgment within the same week.

Once the financial advisory group is familiar with the arrangement and has confidence in our ability to meet deadlines (eg. in the second year of the service level agreement), it is feasible for the financial adviser to deregister its subscription to portfolio administration services, as all statements would be provided in the form of PDFs and are also online. This would result in further savings accruing to their planning group. Our organization can also perform lodgment with ATO and provide transmission reports as confirmation of successful lodgment.

Our senior management team holds the following industry qualification and membership:

  • Qualified accountant (through the CPA / CA and NIA)
  • Registered Tax Agents; &
  • Approved ASIC fund auditors.

Our organization can fulfill any one of those duties listed above to compliment existing financial advisory groups. We are a multidisciplinary organization. Depending on the arrangement, our organization can provide partial/full back office support for all SMSF clients. Our back office platform can provide three levels of support:

 

 

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