WHAT’S THE DIFFERENCE BETWEEN BOOKKEEPERS AND REGISTERED BAS AGENTS?

With the end of financial year fast approaching, you need to ensure that customer satisfaction is translating into a healthy and happy balance sheet. If you have or are looking to outsource your books management, you have 2 options. A bookkeeper or a BAS agent. Each option differs slightly and has its benefits. It depends on your needs. We will try to address how they are different and similar and how it will impact your business.

Bookkeeper

You’re likely to have used a bookkeeper for your business needs already. If you put someone else in charge of accounting, then that person would be considered an everyday bookkeeper who ensures financial trust by balancing books throughout each quarter and at year-end; they process transactions using software like Xero which is easy enough even without training! If your bookkeeper has been on top of the numbers, your accountant will have less work to do.

BAS Agents

A registered BAS agent is a professional with the ability to handle all bookkeeping responsibilities while flying an important flag of differentiation. They must meet certain qualifications and follow guidelines that keep them protected from liability for any mistakes made during their work hours or accidents resulting thereof, so make sure you're trained properly before trying this job out!

Differences

What is the difference between a bookkeeper and a BAS Agent? A simple answer would be that Bookkeepers handle a few tasks while BAS agents are able to carry a heavier load. BAS agents provide their employer with much more clout when it comes to the ATO than bookkeepers do. But this isn't quite accurate enough for what constitutes “the bigger picture." Bookkeepers can perform some of these functions, but they're limited in capacity; whereas registered BAS agents have much stronger abilities which allow them to assist their employers with various matters- things even employees may not do without permission or supervision from management.

- A bookkeeper is not required to be registered with the Tax practitioners board (TPB); a BAS agent must be registered by TPB and There are severe penalties for anyone providing BAS services for a fee or reward or advertising BAS services while unregistered.

- A bookkeeper can only perform everyday bookkeeping for work for their employer, whereas a BAS agent working out or advising about liabilities, obligations, or entitlements of clients under a BAS provision, or representing a client in their dealings with the Commissioner of Taxation in relation to a BAS provision.

- Bookkeepers are employed to look after the books and that’s pretty much it. They’re also able to do many things related to business finances. Registered BAS agents, however, can represent, advise, or assist their employer with certain matters – things bookkeepers are not allowed to do. These include GST, wine taxes, fuel taxes, luxury car taxes, FBT payments, all aspects of payroll relating to withholding tax amounts and reporting those amounts to the Tax office, any other PAYG withholding amounts, and all aspects of income tax payments via PAYG instalments. If your business requires representation to the Tax office on these matters, a BAS agent is required. Bookkeepers simply won’t do.

Similarities

Bookkeepers and BAS agents are both essential for maintaining your accounting records. They report on the state of business finances while ensuring that books stay balanced appropriately, provide you with financial statements. Both bookkeepers and BAS agents can interpret the financial situations of their business and help you, the owner, make business decisions based on their conclusions. Their work helps you know if your business is succeeding or if it requires taking a new direction to get back on track.

One similarity between bookkeepers and BAS agents is the amount of schooling required to be a great accountant for a business. Both bookkeepers and registered BAS agents typically require a bachelor’s degree in accounting or need to have obtained or be working toward CA or CPA qualifications. In Australia’s current business climate, having these qualifications is important.

If you need information on registered BAS agents – or need quality accounting from one – then don’t hesitate to contact iKeep Bookkeeping. We’d be happy to help you with any of your Bookkeeping and BAS agent needs.