Compliance and Support Material

The role of bookkeeper and BAS/Tax agent is divided based on accredited education, credentials, and experience. while bookkeepers require fewer credentials and experience and may not lodge statements with the ATO, BAS and Tax agents have gained the knowledge and experience to do so.

A BAS or tax agent must be aware of the relevant legislation relating to different business structures and the services they provide.

This includes:

• Requirement of registration with the Tax Practitioners Board as a registered BAS Agent under the Tax Agent Services Act 2009 (TASA) and the Tax Agent Services Regulations 2009 (Regulations).
• Recordkeeping entries of business transactions are compliant with A New Tax System (Goods and Services Tax) Act 1999 and in line with ATO publications:
  • Completing your BAS
  • Tax File Number declaration
  • Standard Choice Superannuation
  • PAYG payment summaries
  • Tax returns for individuals and families
• Provides payroll services that comply with Fair Work Australia Act 2009.
• Ensures confidentiality and absolute security of your information, the identity and privacy of your clients and their employees as legislated under the Privacy Act 1988.
• Comply with OHS legislation when servicing clients.
• Comply with The Corporations Act 2001 (Cth) when providing bookkeeping and BAS services to companies.

  Company law in Australia is enforced by the Australian Securities and Investments Commission. Some of the topics covered by the Corporations Act 2001 (Cth) include:

  • the formation of companies
  • the administrative details of how companies operate
  • what company records businesses need to keep
  • the appointment of directors, their responsibilities, how they are to resign and their conduct in relation to the operation of the company
  • defines what the law is in relation to shareholders.

Payroll

Payroll is one of the most heavily regulated parts of the Australian business landscape.

There are so many stakeholders with an interest in payroll regulation, from federal and state governments to employers, industry bodies, unions and employees themselves. When you begin to look at all the legislation that applies to payroll and to someone administering payroll, the mind boggles. Look behind some of the elements of payroll, and you will uncover a complex web of legislation and government department involvement. Such elements include:

• how much to pay
• how much tax to deduct
• how much superannuation to pay
• working conditions
• terminations.

Some major government stakeholders that a payroll professional will frequently interact with include the Australian Taxation Office, the Tax Practitioners Board, Superannuation Funds, the Fair Work Commission, and the relevant state revenue authority.

The Australian Taxation Office

The ATO  is responsible for administering the pay-as-you-go withholding system (PAYGW). It interacts with employers for the collection of PAYGW on behalf of employees. Also, it plays a vital role in the administration of superannuation reporting, the superannuation guarantee system (SG) and the superannuation guarantee charge (SGC).

The Tax Practitioners Board

The TPB  is responsible for administrating the Tax Agents Services Act 2009 (TASA). This body governs the activities of people who charge clients a fee for dealing with certain taxation obligations. It seeks to protect the consumer by ensuring that only suitably qualified and experienced practitioners acting responsibly can deal with another person’s tax obligations for a fee. PAYGW and superannuation are taxation services that the TASA covers, so payroll practitioners charging a fee for dealing with these obligations on behalf of clients must register with and be accountable to the TPB.

Fair Work Commission

The Fair Work Commission is responsible for administering the Fair Work Act 2009, a national system with far-reaching applications affecting pay rates, hours of work, leave, discrimination, dismissal, minimum wage, conditions, payslips, reporting, and much more. Its new national modern awards system has changed pay and conditions for many and exists side-by-side (at least in a transitional sense) with the existing state awards.

Revenue Office or Office of State Revenue

State government revenue offices collect payroll tax based on wages paid in their respective states. Collected by the state or territories’ Revenue Office or Office of State Revenue, payroll tax is levied on employers with payrolls above a certain level. The states differ in their taxing rules concerning minimum thresholds, definitions of included wages, taxing rates, and more. Efforts by the states over recent years have seen them embark on a system of harmonisation to gain uniform treatment across state lines to assist employers in dealing with their payroll tax obligations.

The following diagram highlights some of the significant bookkeeping issues faced by businesses.

Bookkeeping issues faced by businesses:

• Late lodgement of BAS/IAS
• Late lodgement of tax returns
• Claiming GST when not entitled
• Falling behind in lodgements as obligations can snowball
• Agreeing to ATO payment arrangement then defaulting

Many websites assist those working in the financial services industry stay current and updated on government and industry changes.

Below are some websites that offer their readers reliable and industry-relevant information:

Australian Taxation Office

This site not only provides concise content and has worked examples, but it also assists you by offering “How To” YouTube videos. Also, you can follow the ATO on Facebook and Twitter for informational posts and updates on new information.

Australian Financial Review

The regularly updated content on this website keeps you informed of the latest trends in finance, economics, tax, accounting, business and government policy changes. The articles explore how these changes impact accounting and tax in practice and business. There also offer content available on Facebook and Twitter posts. The site also has excellent articles in their newsletters that you can subscribe to.

CPA Australia and Institute of Chartered Accountants

CPA Australia’s My Online Learning features knowledge portals and access to an online community for any accountant or public practice practitioner wanting to keep themselves compliant and informed. The Institute of Chartered Accountants’ MyCommunity Blog has the latest thoughts from the accounting industry about the impact of economic, finance, tax and government policy. Plus, you can connect with your peers and leave comments.

MYOB

MYOB’s Blog offers ideas for your businesses, from government policy to accounting software, and information on your practice and clients. The blog is a great place to get advice from qualified peers. It is an interactive website that allows you to converse with people with different business expertise, including accounting, marketing, finance and public relations. You can also follow MYOB on Twitter and subscribe to their newsletter.

Xero

Xero’s blog has a range of business topics, including Xero news, which contains articles about questions advisors should be prepared for this financial year and the latest product news and social enterprise initiatives Xero are involved in.

As well as websites and industry bodies, numerous publications and other applications provide relevant and accurate information for accountants and bookkeepers.

The following are just some of the more common areas where information can be obtained:

• Print publications by the Australian Taxation Office (ATO)
• Institute of Public Accountants (IPA) publications
• Accountants Daily
• The Tax Institute offers a range of books, journals and other publications
• Publications by the different bookkeeper associations and networks
• The Australian Accounting Review (AAR) is an online journal published four times a year on behalf of CPA Australia
• ATO’s Simpler BAS GST bookkeeping guide
• ATO Fact Sheets and guides
• The BAS Agent, a free e-newsletter
• Professional association newsletters
• Training publications
• Operating manuals
• Instructional guides

Over the last few years, there have been significant changes in accounting and bookkeeping practices with the further development of cloud-based accounting systems. These changes allow bookkeepers and accountants to accurately enter and edit financial information while working in the cloud.

This new technology benefits business owners because of its accessibility, convenient storage of financials, and ability to be discussed concerns and issues with their bookkeepers and accountants via the software or over the phone.

Bookkeepers and accountants have to perform many different tasks in their roles. To do these, they need access to specific software and tools.

Cloud-based accounting programs

There are many cloud-based accounting programs available. Including:

Xero

Xero is a web-based accounting system designed for small and growing businesses. It was founded in New Zealand in 2006 and is used by small business owners, accountants, and bookkeepers. It is generally considered easy to set up and use, is cloud-based, and has Android and iPhone apps. It is known for its intuitive, easy-to-read dashboard and can be used to collaborate with multiple users, including team members, employees, bookkeepers and accountants.

Xero's features include:

• Create expense claims
• Send invoices
• Fast bank reconciliation and integration with your financial institution
• add-on apps, including HubSpot and Square
• Up-to-date financial reports
• Business data protected
• Real-time cash position
• Collaborate with staff or your accountant or bookkeeper online

MYOB

MYOB is cloud-based software that lets you access your accounts from anywhere. You can keep a real-time track of your business progress and work accordingly. MYOB is affiliated with over 150 banks and financial institutions. Examples are Commonwealth Bank, ANZ (Australia and New Zealand Banking Group), NAB (National Australia Bank), and Westpac. It is also integrated with over 300 apps, such as Tanda, Neto Commerce Platform, EzyCollect, ServiceM8, HR Central.

• Manage Your Accounts Professionally: MYOB online app keeps track of your cash flow, invoices, inventory, bills and payments, payroll, taxation, etc. It also keeps track of who to pay and who has to pay. It facilitates your customers to pay directly on their invoices via credit cards, etc.
• Effective Tax Management: With the help of your financial data, it automatically calculates GST (Goods and Service Tax), PAYG (Pay As You Gain), and runs reports for BAS (Business Activity Statement). It is also recognised by the ATO (Australian Taxation Office)
• Multi-Currency Exchange: It keeps your exchange rates and converts money into over 150 foreign currencies.
• Operate Remotely: As long as you are connected to the internet, you can receive live reports and stay updated on the status. It also comes with a mobile app so that you can work without having to access a computer.

Quickbooks Online

QuickBooks Online is a cloud-based accounting software made specifically for non-accountants (unlike QuickBooks Desktop, which was made for accountants). It includes a mobile accounting app that you can use to create invoices, capture receipts for easier expense tracking, and access the same financial reports displayed on the online interface.

Key benefits

• Manage Accounting Professionally: It keeps track of your cash flow and provides detailed statements. It also calculates your finances and manages tax in real-time, taking the stress out of tax time.
• You Gain Access to the QuickFeatures: Including unique transaction features which allow you to automatically send invoices to a customer for them to view, capture and pay using ‘ink on glass signature’.
• External Support: You can invite partners, accountants, and bookkeepers to collaborate on your accounts. You can also ask for expert support from QuickBooks.
• Synced across Multiple Devices: the software allows you to access your data anytime from anywhere. You can have access to it on multiple devices that are simultaneously synced. It also comes with a fully-featured mobile app.

• Dropbox – is a fantastic app that many people use, not just bookkeepers, to store and share documents across many devices. Bookkeepers use Dropbox to access their client's documents easily and securely.
  Read Louise McLoughlin’s blog ‘How to use Dropbox with your bookkeeper’ to find out how she works with her clients using Dropbox.
• ATO mobile app – This app is available on iOS and Android. It includes calculators (fuel tax credits, tax withheld, super guarantee contributions), tools (ABN Lookup, employer/contractor decision), key dates and much more. It makes it easy to grab important information quickly on any device, no matter where you are.
• BAS Agent Portal or Business Portal – An important tool used to lodge various forms and interact with the ATO on behalf of my clients. Including lodging BAS, IAS and superannuation.
• Amortisation calculator – When clients purchase capital assets, e.g. a car, they usually provide invoices and lease or chattel mortgage details but often cannot supply the amortisation schedule. The Amortisation calculator can assist you in creating the schedules as needed.
• Adobe Echosign –Echosign allows you to send documents to clients for signing electronically, which they can do straight from their email client or mobile device. It’s also assisted in maintaining a paperless office
• LastPass – Bookkeepers and BAS agents must remember many passwords, PINs, user names etc. LastPass can be used to solve this problem. All you need to remember is one password to open LastPass, which holds all of my sensitive data in one convenient ‘vault’. The app is browser-based and is accessible on any device with an internet connection. The app is 100% secure and beats any spreadsheet or Word document for password storage.

• ABN Lookup – As a BAS agent, you will be continually checking Australian Business Numbers on behalf of clients. This is necessary to ensure that not only are your clients dealing with legal entities but also to check whether or not these entities are registered for GST. The ATO is closely watching companies who claim GST credits on their BAS for payments made to suppliers who do not have valid ABN and GST registrations. If you are a bookkeeper or BAS Agent, this is something you should be doing for your clients on their behalf all the time

ABN Lookup is a tool to check and find out more about the various ABN Lookup tools available. If your clients use MYOB, you can use the ABN lookup feature within the software.

Watch

• Timer – As a BAS agent or bookkeeper, you have to manage and track your time so that you can bill your clients. The clock app on your smartphone, specifically the “timer” feature of this app, can assist you in managing your time effectively
• Spreadsheets – Spreadsheets are helpful for creating all sorts of checklists. These include preparation tools for BAS, payment summaries and end-of-year tasks, and workflow tools for daily tasks like managing clients and tracking your own business.
• Google Drive - Google Drive is an online file storage app similar to Dropbox, but it is part of the suite of apps known as ‘Google Apps’. It works alongside Gmail, calendar and others. You can access and edit files on any device and know that all your data is backed up safely.
• Skype and Google Hangouts – If you are working with your clients remotely. These two apps solve that problem by providing almost life-like online video streaming, allowing you to see your clients and connect with them from anywhere.

(Source: 10 Useful tools for bookkeepers)