To celebrate Global Bookkeeping Week in 2024 we’re going to take a look at what a licenced bookkeeper (BAS agent) does or can do.
The Tax Practictioners Board (TPB) sets out what types of tax can only be performed by a registered agent:
-Applying to the Registrar for an ABN on behalf of a client. This service might be performed as part of assisting you setting up your business. An ABN is free, you’ve landed on the wrong website if there is a fee.
– Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that require the interpretation or application of a BAS provision. A BAS agent uses their skills to make decisions on your behalf, an unlicenced bookkeeper needs to make every decision.
-Confirming figures to be included on a client’s activity statement.
-Completing activity statements on behalf of an entity or instructing the entity which figures to include. Preparing all the info for you to submit to the ATO is still a BAS agent service, it is not ok to pretend the business owner has done the work themselves. You need a licence to decide on the numbers to be filled into the little boxes.
-Providing advice about or confirming the withholding tax obligations for the employees of a client. Tax needs to be withheld from employees and some suppliers. The rate or amount is a BAS agent service
-Services declared to be a BAS service by way of a legislative instrument issued by the TPB. The Tax Practioners Board website has this list and other info to help you work out when a licence is required.
-Preparing and providing an income statement that may include reportable fringe benefits amounts and the reportable employer superannuation contributions. Group Certificates or Payment summaries in the old lingo are specialist services. This data goes directly to the ATO on behalf of employees – so don’t stuff it up for them.
-Registering or providing advice on registration for GST or PAYG withholding. You must register for GST when your turnover reaches a threshold (amount depends on a few rules). You need to register as an employer when you take on your first employee – this lets the ATO know you need to remit group tax to them and they will add the little boxes to your next BAS form.
-Services under the Superannuation Guarantee (Administration) Act 1992 to the extent that they relate to a payroll function or payments to contractors.
-Advising about an SGC liability, including calculating the liability and preparing the SGC statement
-Dealing with superannuation payments made through a clearing house.
-Advising about the offsetting of late payments of superannuation contributions against the SGC
-Completing the late payment offset election section of an SGC statement
-Representing a client in their dealings with the ATO relating to the SGC – lodging SGC statements, being an authorised contact relating to SG and SGC, and accessing these accounts in the ATO’s online services for BAS agents
-Being an authorised contact with the ATO for payment arrangements relating to SGC account.
-Being an authorised contact with the ATO for requesting penalty remissions relating to SGC
-Being an authorised contact for any audit or review activity undertaken by the ATO relating to SGC
-Determining and reporting the superannuation guarantee shortfall and associated administrative fees.
Super for staff and contractors has lots of technical rules, do you know what they are? Do you know when you need to report info to the ATO and what exactly needs to be reported? Penalties for employers are extremely harsh – so make sure someone competent is on the case here!
-Completing and lodging the Taxable payments annual report to the ATO on behalf of a client. Reporting payments to subcontractors accurately is crucial so your subbies don’t get audited because wrong figures have been provided to the ATO
-Sending a TFN declaration to the Commissioner on behalf of a client. You don’t want any old fool accessing staff TFNs, identity theft is seriously destructive.
-Providing a payroll service which involves interpreting and applying a BAS provision, including reporting of employee payroll information through the use of STP enabled software.
-Undertaking a payroll compliance review, providing an assessment and/or opinion whether the client is compliant with one or more BAS provisions. Your staff deserve someone qualified to handle their livelihood.
-Determining eligibility, providing advice and assisting eligible clients to elect to participate in the JobKeeper Payments scheme.
-Determining eligibility, providing advice and assisting eligible clients in relation to their Cashflow boost entitlements.
-Determining eligibility, providing advice and assisting eligible clients to claim the JobMaker Hiring Credit. Specialist COVID funding could make or break a business, best to have someone suitable to assist you!
These more basic/generic tasks can be done by anyone:
*Installing computer accounting software without determining default GST and other codes tailored to the client.
*Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that do not require the interpretation or application of a BAS provision.
*General training in relation to the use of computerised accounting software not related to client’s particular circumstances.
*Preparing bank reconciliations.
*Entering data without involvement in or calculation of figures to be included on a client’s activity statement.
Bookkeeping isn’t limited to data entry, its small business support! Make sure you’ve got someone skilled and qualified to assist you and your business – after all, your business is your main source of income and that warrants proper protection.
This week #RaiseACup as you realise all that your BAS agent bookkeeper does for you (and maybe ask them for some more help)
