Pros and Cons of arranging SMSF to your business without thinking the strategy

We actually love this strategy but there are positives and negatives to this situation and you will need guidance from your legal, accounting and SMSF Specialist Advisor. Many owners of small to medium enterprises use this as an effective strategy but others do a half-baked job and leave themselves exposed.

Pros and Cons of arranging SMSF

Pros:

• Direct control of your super investments and a real understanding of where your money is invested.
• The fund will pay only 15% tax on commercial rent paid
• If the premises is sold no capital gains tax may be applicable once you are in pension phase and 15% or less if earlier.
• You can be your own landlord with secured tenancy which allows you greater certainty when fitting out or installing equipment.
• Keeps liquidity in the business to fund other costs.

Cons:

• There are thousands of dollars in set-up costs and there are sometimes higher fees involved in getting a loan through your SMSF.
• If a member of the fund dies without the proper insurance in place the fund may have to pay out death benefits leading to a rushed sale of the commercial premises.
• If sold to a third-party then there is a possible loss of tenancy to the business which could destroy it.
• There are strategies that can be built to avoid the cons, it is best to speak to an advisor so that they can see what is best for your personal situation.

MYOB Software Assessment

The MYOB Accounting Software is one of the most prominent software in use within Australia and New Zealand to maintain businesses bookkeeping and accounting records. MYOB is a heavily feature loaded software package which is proficient in handling most small to medium enterprises accounting requirements depending on what client expectations are and how much information is required to be extracted from the accounting software. Most business owners and managers acquire MYOB with the view of it being a measure to help maintain compliance with the tax offices requirements when it is capable of providing so much more useful information which can help an owner/manager gain the edge over market rivals.

With the new generation of cloud accounting software gaining momentum the PC based file that MYOB has traditionally used is becoming outdated. Still if a business does not require taxation updates from year to year, once purchased the MYOB software doesn’t require any further payment for maintenance or subscription.

The set up of MYOB software is very easy and also provides the ability to import a chart of accounts from Quickbooks and existing MYOB data files to step up the process. The main interface is simple to use with basic headings and map lines for each individual heading to provide guidance of basic bookkeeping processes. Data entry requires minimal bookkeeping or accounting knowledge. The MYOB software programs includes inventory management, time billing, job tracking, multi currency usage and strict security controls over users. MYOB also enables you to execute standard accounts processes like invoicing, maintaining debtors/creditors ledger, payroll, GST tracking and bank reconciliation

The best feature of MYOB is its vast reporting facility. apart from the many different reporting options that MYOB provides, the ability of extracting out and personalize the report is more outstanding. This time saved is like dollars saved. Also the ability to export reports into a Microsoft Excel format makes it more easy to customize.

Connect Accounting is a prominent accounting firm in Australia and an experienced MYOB user. Connect deals with accounting outsourcing work for Australian businesses. Connect is quite familiar with the pros and cons of the MYOB software and has the capacity and capability to fetch the maximum and best results through it. Connect Accounting can help you setup your MYOB software or can indeed handle all your accounts for you with the best industry standards, smart technology and a smarter workforce.