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Is your bookkeeping putting your business at risk

Supplier: Perfectus Bookkeeping By: Atlas
25 January, 2013

Bookkeeping is the foundation for building your business empire. Don't let your empire crumble around you.

Prevention in this case is definitely better than cure:

  • Are you using a bookkeeper who is registered with the Taxation Practitioners Board which allows them to be registered as a BAS agent?
  • Have you asked your bookkeeper to confirm their Insurance arrangements lately?
  • Bookkeepers are now required to hold a Certificate IV in bookkeeping or complete 1400 hours of relevant experience in the preceding years
  • Being a member of a Certified Bookkeeping Association or National Institute of Accountants provides your Bookkeeper with the information to be kept up to date

With the introduction of the Goods & Services Tax Act everyone became an expert in bookkeeping after a 1 or 2 day bookkeeping software course. Many of these bookkeepers had not experienced any real business involvement except maybe working as a receptionist, administration assistant or clerk. As you can imagine over time this has taken its toll, with the need for the government to take action. The Tax Agent Services Act has been amended to implement standards to regulate the bookkeeping industry.

The new regulation aims to remove those unqualified persons/businesses who charge a fee for service and in many cases actually do harm to a business by exposing the entity and its directors/owners to tax, interest and severe penalties from the Australian Taxation Office where the accounts are not prepared correctly. This legislation may leave a number of these unqualified bookkeepers operating illegally and be subject to civil penalties. Is your bookkeeper a contractor or employee? If they are a contractor then they need to comply.