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Q – I am almost finished my Cert IV in Accounting (2 subjects to go), does this mean that I can become a contract bookkeeper?
Within the new Tax Agent Services Act 2009 which blooms to life on 1st March 2010 the answer is MAYBE! Can you prove that you have the 1400 hours of relevant experience, which is required to register as a BAS Agent? If you cannot prove this and you genuinely have not done these hours, perhaps employment with a contract bookkeeper would be ideal, or working as an employee, gaining knowledge and experience. There are transitional arrangements for bookkeepers who have the relevant experience yet not yet qualified (read further for more information).
If you have, or intend to study the Cert IV Financial Services (Accounting), you may need to complete a GST/BAS course to be able to register as a BAS Agent of the Tax Agent Services Act 2009.
Cert IV Financial Services (Bookkeeping) does have the option of studying a GST/BAS component – this is the component that the Tax Practitioners Board deems to be relevant to being a BAS Agent.
Q – I have for the past 10 years been a bookkeeper, I have been competently doing the books for my various clients yet I do not have any qualifications, what is my best option?
You can apply to the Tax Practitioners Board under the transitional arrangements if you were previously providing services that are now defined as BAS Services in the new law? You must notify the Tax Practitioners Board within 6 months (from 1/3/2010), and (if accepted), you are considered registered as a BAS agent for 2 years, the Board may impose conditions and you are subject to the provisions of the new laws. You are expected to gain your qualifications within this time, yet the guidelines that will be imposed by the Board have not yet been defined. Keep in touch with guidelines by keeping up to date with the Tax Practitioners Board website – www.tpb.gov.au
Q – I work for an employer doing their books 2 days a week; do I need to register anywhere?
You do not need to be registered as a BAS Agent, although Uniting Bookkeepers urges all bookkeepers to gain their qualifications as we have heard on the grapevine from a source at the ATO that in many years to come there will be similar sanctions imposed – this is a rumour!
Q – My employer is a contract bookkeeper, do I need to register?
Is your employer a registered BAS Agent? Do they supervise your work? If yes, you may work under their direction and there is no need to register as a BAS Agent.
If no, does the client rely on someone else to help them comply with their BAS obligations? If someone else is the BAS expert then you do not need to be registered.
Q – I’ve heard that if I code transactions and process them into MYOB or QuickBooks for my clients that I need to be registered as a BAS Agent – I don’t do the BAS’s the client does – I just get the work ready?
If you only provide data entry, coding transactions based on instructions provided, process payments, pay the tax bill, record keep and bank reconciliations then you do not need to be registered.
Beware that the obligation is on the coding transactions based on instructions provided – do not be the final say on whether GST applies or not. Also do not have the final say on the format of tax invoices issued or the amount to pay on a BAS. Do not advise your clients on matters of tax interpretation and of how much BAS taxes to pay and please do not liaise with the tax office on behalf of the client/s.
Q – I was told that I have to join an Association?
Neither tax agents nor BAS Agents have to belong to an association.
Q – I’ve read that as a BAS Agent I need to have Professional Indemnity Insurance – how can I afford this, I only have 2 clients – can I get an exemption on this?
You need your PI Insurance from the commencement date of the new law (even if you are applying as a transitional bookkeeper), and yes we all agree it is costly. With many insurers or brokers you can apply for funding (paid monthly), yet you have to apply for this.
If you only have 2 clients you may need to reconsider your career path – either to grow your business or to work for another bookkeeping practice or be employed with a business that requires a bookkeeper.
Q – I’m interested in how to become a bookkeeper?
This is a very open ended question and there are several answers. As a bookkeeper you can become a contract bookkeeper (BAS Agent), or be employed by a business as a bookkeeper, or be employed by a bookkeeping practice or be employed by Tax Agents or in accounting firms.
The first place to start would be to enrol in an institution to gain knowledge, and learn what bookkeeping is all about. It really isn’t just about ‘doing the books’ these days.
Q – What do accountants look for in a good bookkeeper?
Accountants want bookkeepers who know what they are doing? Sounds obvious but if you are competent, compliant, and qualified this is your greatest source of referrals. The Accountants want you to be able to:
- Identify where transactions are to be coded to – either profit & loss or balance sheet
- They need you to be able to take up the correct GST and know about the GST legislation
- They need you to be able to reconcile all reconcilable accounts e.g. bank, credit cards, loans, PAYGW, Super, etc
- They need you to be responsible with suspense accounts and report on any balances
- They need you to be aware of your client’s industry and what is acceptable and what is not
- They need you to be able to communicate with them, especially when help is needed
- They need good bookwork and appropriate paperwork for the end of financial year statements
- And of course there are many more aspects of this – just ask them what they want
Q– If I make an honest mistake in my work, can I get sued by my client?
Firstly this is why we have Professional Indemnity Insurance for instances like this!
This is such an opened question, how big was the mistake, or how little was it? I take it by the question that this is a big mistake? If yes, than yes they can sue you. Please read the regulatory fact sheets under the Tax Practitioner Board website. www.tpb.gov.au