Small Business owners in today’s fast paced world either don’t look at their financial situation often enough of they don’t understand the consequences of what they are reading.
Two of the biggest causes of business failure are the lack of collection of debts resulting in poor cash flow. A Qualified Bookkeeper can provide you with information that will highlight any areas that require investigation and change and will ensure that those debts are collected on a regular basis.
There is a move in the bookkeeping industry to professionalise the field making bookkeepers accountable for the work they undertake for their clients.
Part of that move is linked to the changes to the legislation in regard to BAS agent registration.BAS agents are now required under the law to be part of a professional association, hold professional indemnity insurance and be a fit and proper person.
Professional Associations
Your bookkeeper should be a member of an accredited professional association. This ensures that your bookkeeper abides by the code of ethics laid down by that association and disciplinary action is taken as a result of a breach. The professional associations also require their members to continue their education and keep up to date with the latest changes by providing continuing education courses and information.
The Tax Practitioners Board provides a list of accredited associations in relation to the BAS Agent registration. http://www.tpb.gov.au/
Safeharbour provisions and your agent.
Safeharbour provisions relate to services provided to a client by a registered agent whether that is a tax agent or a bas agent.
Under the provisions a taxpayer is not penalised for acts carried out by a tax agent or bas agent where due care has not been taken to ensure the information provided to the Australian Taxation Office is correct and that lodgement dates are met. The provisions excludes act that disregard the tax law.
To put it in simple terms make sure that your bookkeeper has professional indemnity insurance, they are a member of a professional association and when preparing tax documents that they are registered with the Tax Practitioners Board.
Professional Indemnity
Professional indemnity applies if there is an act that resulted from negligence or a breach of duty in any work carried out by your bookkeeper resulting in a financial loss for your business.
In simple terms it is an insurance policy that protects you as the client and your bookkeeper
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What does that mean for you as a client?
As a client you need to ensure that your bookkeeper has adequate professional indemnity insurance. Where you are undertaking the services of a contract bookkeeper it is important to keep these considerations in mind as they provide protection for you as a client that you would otherwise not have.
For your professional bookkeeping information
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