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The bookkeeping industry is about to experience a bit of a shake-up.

The Australian Treasury and the Australian Tax Office don’t really understand what bookkeepers do. So to solve this “problem” and the government is planning to introduce legislation outline the difference between bookkeepers and tax agents (BAS agents) without actually defining when bookkeepers suddenly become “quasi” tax agents (BAS agents)

Apparently (according to the proposed legislation) bookkeepers do not make decisons every hour of every day regarding the allocation of an invoice or a receipt – only BAS agents do that. The legislation will rule that only a registered BAS agent is authorised to set up a chart of accounts using a generic software package such as Quickbooks or MYOB.

And then a “bookkeeper” can come along and enter the relevant data with absolutely no accountability for what they are doing. Then the bookkeeper will hand over the file to a registered BAS agent to lodge the BAS form. The question is, how does a BAS agent check all the entries that have been made by the bookkeeper?

Small business owners will be able to employ bookkeepers to undertake general bookkeeping duties, as long as the employer (small business owner) completes the BAS form

Why would a small business owner employ a bookkeeper who is not accountable for what they are doing? After all, most small business owners have no idea about bookkeeping, which is why they employ bookkeepers in the first place.

So how will the legislation help the general public (small business owners)? Here’s how:The legislation will drive “cowboy” bookkeepers underground, and create more outgoings for qualified bookkeepers, which most likely will result in an increase in bookkeeping fees.

So the small business owner who is supposed to be protected by the legislation will actually be worse off. They will either have to pay higher bookkeeping fees to legitimate contract bookkeepers, or find they will have to employ “cowboy” bookkeepers that the legislation was trying to prevent.

For professional and efficient mobile bookkeeping services for your business, in and around Campbelltown, Glen Alpine or Minto….Call 0415 453 536.