SMSF Sorted Workpapers

SMSF Sorted Workpapers

Introduction

We have introduced comprehensive workpapers to support the preparation of Financial Statements. This article outlines how to access and utilize this feature, as well as the types of workpapers available and how they can assist with streamlining your financial workflows.

Available Workpapers in SMSF Sorted

Workpapers in SMSF Sorted are designed to streamline accounting processes by pulling data directly from your administration software. The workpapers currently available include:
  1. Property & Rental Schedule
  2. GST Reconciliation
  3. Tax Reconciliation
  4. LRBA (Limited Recourse Borrowing Arrangement)
  5. Unlisted & In-house Assets
  6. Contributions
  7. Pensions
  8. TBAR (Transfer Balance Account Reporting)
Notes
Note: This list may expand in future releases based on user feedback.

Detailed Workpapers Breakdown

Here is a comprehensive breakdown of each workpaper available in SMSF Sorted:

1. Property & Rental Schedule Workpaper

You can access this workpaper through Statement of Financial Position. You will have to Generate Workpapers first. The Property Workpaper is divided into two main sections:

Property Details:

  1. Includes property address, purchase date, adjusted cost, and other details imported from the administration software.
  2. You can also manually enter information, such as LRBA details and other line items.
  3. The system allows users to manually set the LRBA status and Legal Owner details.


Income and Expenses Summary:

  1. This section imports income and expenses data from both the current and prior years for comparison.
  2. Additional detail lines can also be added to both sections as needed.


2. GST Reconciliation Workpaper

The GST Reconciliation Workpaper helps manage the GST position of the fund and includes fields to:
  1. Import GST payable or refundable data from the financial statements.
  2. Manually enter quarterly GST figures from the Integrated Client Account (ICA) or Business Activity Statement (BAS).
  3. Add GST adjustments from previous years under the GST as per ICA/BAS section.
  4. If the administration processing for the year is incomplete, you can refresh the GST Reconciliation Workpaper by reimporting the Lead Schedule from your administration software once all relevant processing has been completed.


3. Tax Reconciliation Workpaper

The Tax Reconciliation Workpaper provides an organized view of tax data, much of which is pre-populated from the imported financial data. The following sections are included:
  1. Income


  1. Expenses


  1. Credits
  2. Tax Offsets



Calculations are run for Net Tax Payable and Amounts Due or Refundable. The actuarial percentage must be manually entered. Once processing is completed in your administration software, reimport the Lead Schedule to refresh the Tax Reconciliation Workpaper.

4. LRBA Workpaper

This workpaper handles Limited Recourse Borrowing Arrangements (LRBA) and pre-populates:
  1. End-of-year loan balance
  2. Interest paid on the loan during the year based on financial statement data.
Additionally, users can manually enter the total loan amount and toggle the related party loan option.
The system also performs automatic interest calculations and compares them with loan agreements and ATO benchmarks, allowing you to identify discrepancies.


5. Unlisted & In-house Assets Workpaper

The Unlisted & In-house Assets Workpaper guides users through a series of questions to determine if an unlisted investment qualifies as an In-house Asset and whether it falls within the allowable limit.
  1. When Yes is selected for related entity control, an additional question about 13.22C status appears.
  2. Furthermore, a separate worksheet can be accessed to perform Market Valuation calculations.
  3. If the fund exceeds the allowable In-house Asset percentage, the system will display a warning based on the data entered.


6. Contributions Workpaper

The Contributions Workpaper provides a detailed overview of contributions made during the financial year for each member. Additionally, it calculates how much a member is eligible to contribute in the following financial year. Data for this workpaper is imported directly from the administration software, simplifying the reconciliation process.


7. Pensions Workpaper

The Pensions Workpaper automatically imports data from the administration software and calculates whether pension drawdowns for the relevant year are within the prescribed minimum and maximum limits.
Details for the following year are also provided. If the drawdowns do not meet the minimum requirement, the figures will appear in red; compliant figures are shown in green.


8. TBAR (Transfer Balance Account Reporting) Workpaper

The TBAR Workpaper allows users to manually enter Transfer Balance Account (TBA) details for each member. Although data is not pre-populated at this stage, Cloudoffis is exploring ways to automate this in future releases.

You can click the + icon next to a member’s name to add TBA records and update the workpaper as required.


These workpapers, integrated into SMSF Sorted, simplify the reconciliation and reporting processes for financial statements. As Cloudoffis continues to enhance SMSF Sorted based on client feedback, the workpaper functionality will become even more robust and user-friendly.

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