Not all BAS agents are the same as bookkeepers. Both have different responsibilities. A BAS agent and a bookkeeper play an important role in any business. Both have to ensure that the financial records of your business are accurate and up-to-date throughout the year. The blog will share the important distinction between a BAS agent and a bookkeeper.
What are Bookkeepers Responsible for?
Bookkeeping services may vary based on the business type and size. A bookkeeper’s role can also vary based on if they are handling all the bookkeeping tasks or helping in certain areas. Take a look at the following section to know the tasks performed by a bookkeeper:
- Bank reconciliation
- Recording financial transactions
- Managing bank statements
- Processing accounts receivables and payables
- Preparing financial reports
- Collaborating with the business tax accountant to assist with taxation compliance
- Working with business management on some payroll functions and human resource functions
What are BAS Agents Responsible for?
There are requirements for education and experience levels in order to become a BAS Agent. The Tax Agent Services Regulations 2009 specifies the requirements, and the Tax Practitioners Board is in charge of enforcing them. A BAS Agent provides the following services:
- TFN, ABN, and business name registration
- PAYG and GST registration
- Single Touch Payroll (STP) processing
- Complex budgeting
- Software installation and training
- Preparation and filing of BAS monthly or quarterly
- Quarterly reporting and end-of-year reviews
- Taxable payments annual report
- EOFY reporting on STP
Is It Necessary for Bookkeepers to Be BAS Agents?
No, not every bookkeeper needs to become a BAS agent. To be in compliance with the law, a business that requires BAS services and engages a third party for it must confirm that both the BAS agent and the tax agent are registered. According to the Tax Agent Services Regulations 2009 (TASR), a registered BAS agent must have the necessary educational and professional requirements.
A bookkeeper may decide to register with the Tax Practitioners Board in order to become a BAS agent. A BAS agent is competent to offer a variety of services that go outside the scope of a bookkeeper’s expertise. However, if they are overseen by a BAS agent, a bookkeeper can also execute transactions including payroll and GST. This supervision has become important as TPB is strict about examining the control exerted on the duties being performed by Melbourne bookkeepers.
Why Does a Company Need a BAS Agent?
A BAS agent is needed by every company to provide advice and represent the entity in front of the ATO. The BAS agents are required to maintain their registration via the completion of several educational requirements. In addition to this, they need to manage Professional Indemnity Insurance. They can perform all tasks of a bookkeeper
and other tasks within the company, such as:
- They prepare and file the business activity statement and give recommendations on payroll and BAS obligations that need to involve the entitlements and liabilities.
- They design, examine, supervise, and suggest the compliance system around GST, and indirect taxes on the BAS.
- They keep track of everything that is needed to be presented to the ATO related to BAS provisions and matters related to payroll, such as giving payment summaries, report superannuation, tax file number, and applying for an Australian Business Number, etc.
- They can help businesses with fuel tax, GST, luxury car taxes, FBT, PAYG dues, and withholding tax amounts.
Similarities between Bookkeepers and BAS Agents
Typically, BAS agents and bookkeepers deal with the same type of activities. They make a report on the financial status of the company while making sure the books are updated properly. Both can prepare financial statements, help with filing BAS, prepare internal reports, and record financial information for businesses. They are important for your daily accounting activities. Both BAS agents and bookkeepers can help you know the financial status of a company and help business owners make the right business decision.
Now, you can decide whether you need a bookkeeper or a BAS agent for your company. If you are looking for bookkeeping services, you can get in touch with a Reliable Bookkeeping Services provider.
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