Reconciling an asset loan

Because an asset loan is typically between your SMSF and a private individual or entity, you are likely to need to perform loan a reconciliation from time to time and issue a statement the the borrower, and you will need to do this without the benefit of a statement issued by another party (such as a bank).

Asset loan interest should be calculated off line. It is recommended that you set up a spreadsheet that records repayments, adjusts the loan balance and calculates interest at periodic intervals (e.g. at the end of each month. You can then reconcile the balance shown in Mclowd™ with the balance shown on the spreadsheet and the spreadsheet can be used to prepare a statement of account for the borrower and to satisfy audit requirements.