Keeping good records is more than just knowing which records to keep and for how long. It involves having a system for organising and maintaining records that makes it easier for you and any SMSF professional you use to:

• complete the fund's independent audit each year
• prepare the funds financial statements, and
• lodge your fund's annual return.

The most important reason for keeping good records is that it's a legal requirement for you to do so. You may also need to provide accurate records to the ATO if they ask to see them.

Record-keeping may also help reduce audit and administration costs for your fund.

To help keep your records organised, you may want to create separate files for your fund's:

• more permanent records, and
• records relating to a specific financial year.

For example, in your permanent file you may want to keep:

• the fund's trust deed and any amendments
• the fund's investment strategy
• details of the regular reviews of the fund's investment strategy, including the consideration of insurance for members of the fund
• reasons for decisions on the storage of collectables and personal use assets
• minutes of trustee meetings
• all signed trustee declarations
• records of trustees consenting to their appointment as a fund trustee
• records of all changes in fund members and trustees.

Each SMSF is unique and has its own investment strategies to achieve its objectives. You should consult with a professional licensed adviser about setting up a record-keeping system that suits your fund.

Keeping all relevant records together will simplify the process of compiling the records you need to give to your fund's independent auditor. If your fund regularly holds trustee meetings, you could create a separate folder for them and sort them by date.