SMSF Sorted - Preparer's Best Practice Guide
Introduction
SMSF Sorted is designed to support preparers by streamlining SMSF workpapers preparation through standardised processes and reduced manual effort. It enables easy client import and job creation, uploading and tagging documents with bookmarks linked to financial statements, and real-time tracking of queries and audit statuses. Integrated with Class, BGL, FYI Docs and many other useful tools like DocuSign. Cloudoffis simplifies daily tasks and improves efficiency, accuracy, and collaboration across the entire preparation process. This guide will cover the step-by-step process for preparers to complete the fund preparation and make it ready for review for the reviewer to process further.
1 - Importing Client
To begin preparing a fund in SMSF Sorted Pro, the first step is to import the client into the portal. Before you start, ensure that all the transactions are processed in the accounting software(Class/ BGL) and the period update has been completed. This ensures that the latest financials and member details are correctly reflected after the import.
Step 1: Click on Clients > Manage Clients > Import Clients.
Step 2: Select the accounting software from the drop-down.
Step 3: Select the funds that you want to import and click on Import Selected Clients.
Step 4: The client will be successfully imported. Now, click on Manage Client.
2 - Creating Job & Importing Financials
After successfully importing the client, click on Manage Clients to access the full list of imported funds. From this page, you can view all available clients and proceed with the next step in the preparation process, Creating Job and Importing Financials.
Creating Job
Step 1: On the Manage Clients page under the Action column, click the three-dot icon and select Create a Job.
Step 3: Select the Financial Year and assign the Staff as Preparer, Manager and Reviewer.
Step 4: Once you have added the details, click on Create Job.
Your job will be successfully created, and you can then import lead schedules or manage documents using the respective buttons.
- Refer to the below KB articles for detailed information about creating jobs, creating jobs in bulk and creating a wind-up job.
Importing Financials/ Lead Schedule
Step 1: Click on Import Lead Schedule to bring the financial data and auto-tag accounting software reports to the relevant account heads.
Step 2: Now the data import process will start and can be tracked from the screen. Click on the Job Dashboard button after it is enabled.
Step 3: On the Job Dashboard, you’ll see the available data displayed. Any sections that are still loading or yet to be imported will appear in a greyed-out skeleton view on your screen. At the top of the screen, next to the fund name, you'll notice a Loading icon that indicates the import is still in progress.
Step 4: Once the Import of Lead Schedule is completed, the job information will be displayed on your screen automatically.
3 - Uploading Documents
The next step is to upload the supporting documents and tag them to the relevant line items in the Statement of Financial Position and Operating Statement. This will ensure that reviewers can easily verify the financials with the help of the corresponding documents during their review process.
Step 1: From the Job Dashboard, click on View Documents under DMS.
Step 2: Click on the Upload Documents icon.
Step 3: Choose to upload documents from your Local Drive.
Step 4: Select the files you want to upload and click Open.
Step 5: The documents will be uploaded, and the document upload status (success/failure) will be displayed.
4 - Running AI
AI processing in SMSF Sorted Pro is designed to make the preparation of SMSF funds faster and more accurate. When you upload documents like wrap statements, ASIC company statements, or ATO reports, the AI automatically reads the information, extracts key figures, and compares them with the data already recorded in your accounting software. It helps identify differences in balances, trustee details, or account numbers, so you don’t have to manually check each item. Once processed, the AI also gives you a summary of the extracted data, allowing you to review, make corrections if needed, and tag documents to the correct financial line items.
Step 1: Once documents are uploaded, click on Run AI.
Step 3: You will see two options: Run AI and View Processed AI Files. Select Run AI again.
Step 4: AI processing will start, and the progress will be shown.
Step 5: After completion, click View to check the AI results.
Step 6: You can also view the status of AI-processed files.
Refer to the below KB articles to know more details about AI processing on various supported documents in Cloudoffis AI.
5 - Viewing Observations
Observations highlight any breaches or potential issues found within the fund. These could relate to compliance, data mismatches, or missing fund information. After reviewing the Warning observations, if any changes are required in the account, you can re-import the data by fixing the issue in your accounting software. If no change is required for a Warning observation, you can simply mark it as Good to Go by clicking on the Mark as Ok button and also add a comment for the reviewer's reference. If required, you can also add a Review Point to draw the reviewer's attention to any matter.
Step 1: On the Dashboard, you will see a section specifically for Observations. This is divided into four categories:
- Warnings: Highlights validation issues that need attention.
- Good to Go: Observations that have passed the validation checks.
- Not Applicable: Observations that do not apply to the job.
- Data Not Available: Observations that cannot be run due to missing data or unavailable APIs from the accounting software.
Step 2: Click on any section (Warnings, Good to Go, Not Applicable, or Data Not Available) to view specific observations.
Step 3: If an observation is listed under Warnings, you can choose it to Move to Good to Go, add Comments, create Queries, or add a Review Point.
For observations under the other categories, the options includes adding comments, queries, or review points. Click here for more details.
6 - Reimporting Data
If you’ve reviewed the observations and found that changes are needed in the accounting software, you can easily Re-import Lead Schedule after making the relevant changes in the accounting software to make sure SMSF Sorted reflects the latest updates.
Step 1: Click on the Reimport Lead Schedule icon.
Step 2: You can Overwrite Existing Data while Re-importing Lead Schedule.
Note: If you have a process of uploading and tagging the documents in Sorted Lite, you can select the Include Sorted Lite Documents checkbox and this will carry the work done in Sorted Lite to Sorted Pro.
Step 3: Confirm and click OK on the appearing pop-up.
Step 4: The reimport process will begin and you will get a message on the screen once the data is re-imported.
7 - Bookmark Source Documents from the Financial Statements
To prepare the fund for review, you have the option to tag source documents to the relevant line items in the Statement of Financial Position or Operating Statement. This helps the reviewer quickly verify the closing balances against the supporting documents, making their review process faster, more efficient, and easier to complete accurately.
Step 1: Click on the Statement of Financial Position or the Operating Statement. To view all the accounting items, click on the Expand All option.
Step 3: You can search for the supporting document of an accounting item by clicking on the magnifier icon available on the accounting item name, amount and quantity as shown below.
Step 4: A list of documents having the searched amount will be displayed on the left side of the screen. Click on the supporting document you want to tag; this will take you to the exact page where the searched amount is located. You can switch between documents and the searched amount will be highlighted in the document for you to easily locate, verify and tag. You can search with amount, investment quantity or accounting item name. Further, if you want to search with any other text or amount, you can type that on the search box available on the list of documents.
Step 6: Select the appropriate document, then click on the Tag icon to bookmark the item.
The document will be tagged successfully.
Click here to know more features about DMS & document related actions.
8 - Generating Workpapers
We’ve introduced comprehensive Workpapers to help you reconcile & add the relavent information in relation to some complex accounting items (Direct Property & Unlisted Investemets, Related Party Loans, GST etc.). SMSF Sorted automatically imports key information in one click and allows you to manually edit or add more detailed information in the workpapers. You can also attach supporting documents and add comments, just like when reviewing Financial Statements.
Accessing and Generating Workpapers
To access and generate workpapers, follow these steps:
Step 1: From the Statement of Financial Position or Operating Statement, click on the small Workpapers icon that appears on relevant line items.
Step 2: When opening workpapers for the first time, click on the Generate Workpapers button.
Step 3: After a brief moment, the system will generate the workpapers, which will then appear on your screen.
Step 4: Once the workpapers are generated, they will be displayed similarly to the example shown below:
9 - Raising Queries and Review Points
If any document is missing or additional information is needed, you have the option to raise a query internally for your team directly within SMSF Sorted. This helps you manage follow-ups and ensures all required details are collected before submission.
In case the auditor raises a query, you’ll be notified within the portal. You can view their questions, upload any required documents, and provide responses directly, keeping all communication in one place and ensuring a smooth review process.
Creating Queries
Step 1: Navigate to the Queries section and click Add a Query.
Step 2: The Query Type will automatically be set to Internal. Fill in other necessary details like: Reference, Assign To, Notify To, Query Heading, and Query Description.
Step 3: Attach relevant documents if required.
Step 4: Choose and click on either Submit (notification on portal only) or Submit and Email (notification sent via email and portal).
The Query will be added successfully. Click here for detailed information.
Creating Review Points
While preparing the workpapers, if you come across a scenario that requires the reviewer's attention, you can create a review point for him.
Step 1: From the Job Dashboard, scroll down and click on Open/Closed from the Review Points.
Step 2: Now click on Add Review Point.
Step 3: Add details such as: Reference, Assign To, Notify To, and Description.
Step 4: Attach Documents, if required, and Submit (notification on portal only).
Step 5: The Review Point will be created. The reviewer/ manager can take further action on the review points.
Click here for more information.
10 - Changing the Job status to Ready for Review
Once the workpapers preparation is completed in SMSF Sorted and you are confident to move the job to the next stage, you can simply change the job status to Ready for Review. This will send an email and portal notification to the reviewer & the manager assigned to the job. From here, the reviewer can start reviewing the fund. Follow the steps to change the status of the job.
Step 1: From the Job Dashboard, click on Change Status button.
Step 2: Select the status as Ready for Review, click on it and then on Save & Close .
Step 3: Click on Change Status in the appearing pop-up to confirm the action.
Step 4: This will send an email notification to the reviewer.
To know the Reviewer's Best Practices, click here.
To learn more about the process, explore best practices, and make the most of our features, please visit our Knowledge Base. Contact our support team at support@cloudoffis.com.au if you need any assistance.
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