Is Your Bookkeeping Above Board? Here’s Why You Need a Registered Pro.
Think your contractor/VA or a tech savvy friend can handle all your bookkeeping? Think again! Many assume handling data entry, invoicing, payroll and GST coding is simply a matter of clicking a few buttons, and anyone can do it. But here’s the truth, even if they’re not lodging the BAS itself, these everyday tasks are classified by the ATO as ‘BAS Services’. And only a registered BAS Agent or Tax Agent, can legally perform these tasks for you as an external service provider.
In this blog, I’ll clear up why these seemingly straightforward tasks require professional expertise, and how ensuring your compliance can save you from costly mistakes. Ready to see why having a registered pro on your side is crucial, and which tasks can be handled by who? Let’s dive in!
What’s a BAS Service?
When most people hear ‘BAS Services’, they immediately think of lodging a BAS, but it is so much more. BAS services cover a wide range of tasks like processing payroll, GST Coding your expenses (choosing if there is GST or not and how much), preparing invoices and determining to charge the customer GST or not, and sometimes even reconciling your accounts. Essentially anything involving calculating or determining if GST is applicable, plus all Payroll services and form lodgements (BAS, IAS) falls under the BAS Services umbrella.
Now, here’s the kicker – ALL these tasks are legally required to be done by a registered BAS Agent, or Tax Agent if you’re outsourcing your books to them. It’s not only about lodging the BAS. It’s about ensuring everything leading up to the point is done accurately, in line with ATO requirements, and by someone qualified to do it.
And no, before you ask, you can’t get your outsourced assistant, to do the tasks, and have a BAS Agent review the work. But we’ll talk more about this shortly.
The Legal Side
You might think, ‘What’s the harm in having my VA handle the books if someone qualified lodges the BAS?’. But if your books aren’t done correctly, the BAS lodgement is already flawed. Mistakes in payroll, GST coding, inaccurate claims and more, can lead to hefty penalties for both you and your VA, missed deadlines, and the last thing you want is the ATO breathing down your neck with an audit.
While your trusty BAS agent can and will check most things, to be able to guarantee everything is correct they’d need to go through every single transaction, so you may as well pay someone qualified & legit, to get it done right the first time. Only a registered Tax or BAS Agent can perform these tasks when outsourced. If someone unregistered does the work, they’re breaking the law and risking hefty penalties, and you’re still responsible for any mistakes they make, meaning you’re liable if something goes wrong.
Common Myths Debunked
There’s a lot of confusion and noise out there when it comes to bookkeeping and BAS Services. Here are a few myths I hear all the time.
While we’re using VAs as an example, this is only because they’re the most common role we see taking on bookkeeping tasks they shouldn’t be. And let me be clear, we absolutely LOVE VA’s. The ones we know and work with, are stellar professionals who stay in their lane, same as we stay in ours when it comes to admin tasks!
The Importance of Using a Registered Pro
You wouldn’t trust your hairdresser to handle your legal contracts, so why would you trust your all important numbers to someone unregistered?! Using a registered Tax or BAS Agent isn’t only a legal box to tick, it’s crucial for protecting your business. Registered professionals ensure your books are accurate, you’re compliant, and you avoid nasty fines or legal issues. Letting someone unregistered handle things puts you at risk, and you’re still liable if they mess up. Stick with the experts and keep your business safe!
Aren’t all bookkeepers registered?
It’s important to mention, the unregistered issue isn’t limited to VA’s. There are sadly also bookkeepers (and even big businesses) out there trading unregistered, yet calling themselves ‘experts’, or ‘professionals’. Even having a CPA, CA, Registered Bookkeeper, or any other accounting qualification doesn’t cut it when it comes to BAS services. Only registered BAS or Tax Agents through the TPB, can legally do this work as your outsourced experts.
How to Ensure Your Books Are Above Board (Compliant)!
To keep your books legit, always work with a registered BAS or Tax Agent. They’ll handle everything from GST coding to payroll, ensuring compliance with ATO rules. Unsure if you’re working with a registered pro? Ask them for their Agent number, and check the Tax Practitioners Board (TPB) website public search. They should also have their Agent number on their invoices or website.
It’s worth noting, some VAs are registered BAS Agents but may focus on other core services. So even if they identify their business as a VA, they might still be qualified to handle your bookkeeping tasks. The key is to ask for their Agent number to confirm their registration.
If they’re not registered, they legally can’t provide these services, and you could face the consequences. A little effort upfront to find the perfect, registered person for you, saves major headaches later.
A Quick Guide to Who Can Do What
If you’re still with me, it seems you love diving into the details! So, to make things super clear, here’s a quick breakdown of common bookkeeping tasks and who’s legally allowed to handle them.
| Task 👇 Who Can Do It 👉 | VA/Admin | BAS Agent | Tax Agent |
|---|---|---|---|
| Preparing Bank reconciliations (no entry of transactions) | ✔️ | ✔️ | ✔️ |
| Coding transactions, tax invoices, having to interpret if GST is applicable | ✔️ | ✔️ | |
| Creating & sending out customer invoices, where a BAS or Tax Agent has determined the GST rate applicable. | ✔️ | ✔️ | ✔️ |
| Confirming figures to be included on an activity statement (BAS, IAS) | ✔️ | ✔️ | |
| Completing activity statements on behalf of an entity, or instructing them which figures to include | ✔️ | ✔️ | |
| General training in relation to the use of software, NOT relating to particular circumstances or GST | ✔️ | ✔️ | ✔️ |
| Entering data without involvement in, or calculation of figures going on an activity statement | ✔️ | ✔️ | ✔️ |
| Providing advice about, or confirming withholding tax obligations (tax on employees’ payroll), providing any payroll services | ✔️ | ✔️ | |
| Any services relating to Superannuation Guarantee, liabilities and lodgements | ✔️ | ✔️ | |
| Advising about Fringe Benefits Tax, personal or company Income Tax | ✔️ | ||
| Lodging income Tax Returns | ✔️ |
Now you know, BAS Services aren’t *just* about lodging the BAS. There’s a whole lot more which falls under the ‘BAS Services’ umbrella, and plenty of tasks only a registered professional can legally handle. So, before you let anyone dive into your books, because ‘they’re great with Xero’, or ‘they fit your budget’, make sure they’re properly qualified, your business (and your peace of mind) will thank you!
If you are after some tips on finding the right bookkeeper, tune into my podcast episode Hiring a Bookkeeper? Here’s What you Need to Know for expert advice on finding your first, or next perfect bookkeeper. Got questions about BAS Services or finding a bookkeeper, feel free to email us, we’re here to help!
