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- Reading Time: 7 Minutes
- Published: November 3, 2022
- Last Updated: February 14, 2025
Accounting and bookkeeping are business functions that deal with all the business numbers and help ensure all the financial business activities are properly recorded in the books. However, the personnel or team that manages the financial tasks are mostly different. There are bookkeepers, BAS agents, accountants, and tax agents. Each of them differs in certification, training, qualification, work responsibilities, and authority per Australian legislation. Understanding how each individual can contribute to your finance function is important.
Many confuse bookkeepers, BAS agents, accountants, and tax agents. Your business might need all these professionals or might be able to survive with lesser or even one of these professionals on your team. Today we specifically discuss similarities and differences between a bookkeeper and a BAS agent and check which one is right for your business. However, we are adding an illustration below, which might help you get some clarity about all these four professionals.
Bookkeepers vs. BAS Agent: Definition
Who is a Bookkeeper?
When a business doesn’t or can’t manage its bookkeeping on its own, it entrusts its bookkeeping function to a bookkeeper. They ensure that the business’s books are balanced throughout every quarter and at the end of the year. They offer bookkeeping services like tracking and recording transactions, reconciling accounts, and preparing financial reporting. They also prepare and send business invoices and manage payroll processing. Usually, they use accounting software such as Xero or MYOB accounting software to simplify their day-to-day accounting activities. Their proficiency with the software makes it possible to keep track of business accounts. This proficiency comes in handy when year-end approaches because the business numbers must be precise. The work put in by the bookkeeper will ensure that the accountant will have less work to do at year-end.
Who is a BAS Agent?
BAS agent is a professional who is registered with the Tax Practitioners Board (TPB). The services to be provided by the BAS agents are defined and specified in the TASA (Tax Agents Services Act, 2009).
BAS agents provide BAS services. These services include working out or advising about liabilities, obligations, or entitlements for businesses who are obligated to file a Business Activity Statement (BAS) and representing businesses in front of the ATO in relation to a BAS provision.
BAS is a pre-printed document issued by the Australian Taxation Office (ATO), which is an obligation for businesses with over $75,000 turnover or for businesses with GST (Goods and Services Tax) registration. This document helps businesses report and pay GST, FBT (Fringe Benefits Tax) instalments, PAYG (Pay As You Go) income tax instalments, PAYG tax withheld, ABN (Australian Business Number) withholding tax, WET (Wine Equalisation Tax), LCT (Luxury Car Tax) and fuel tax credits
A BAS agent can be an individual or an entity. They must have a high level of qualification, experience, professionalism, and competence. They must also regularly upgrade their business knowledge by attending professional education classes. Businesses rely on BAS agents to process and calculate correct business numbers and advise them about statutory reporting requirements. Nowadays, businesses can access these services by hiring the services of a BAS agent online instead of getting their services on-site.
Similarities Between Bookkeepers and BAS Agents
Bookkeepers and BAS agents essentially perform similar functions. They keep track of a business’s financial status while ensuring that the accounts are accurately balanced. They may also prepare financial statements, create internal reports, and collect financial information for the business. Accounting is a significant part of their daily routine. They read the business’s financial numbers and help it make informed decisions based on their interpretation. Bookkeepers and BAS agents assist businesses in determining whether they are thriving or need fresh thinking.
Useful Read: 8 Basics of Bookkeeping You Can’t Afford to Miss
What Can a BAS Agent Do That a Bookkeepers Can’t Do?
A bookkeeper and BAS agent can handle the bookkeeping task but only registered BAS agents can offer BAS services. Bookkeepers can offer BAS services to your client only if they have at least a Certificate IV qualification through a registered trainer and get work experience under a registered BAS agent’s supervision. Bookkeepers perform a few duties, but BAS agents can handle a lot more. A few such tasks are –
1. Advisory Role-
Besides what a bookkeeper can do, i.e., process, reconcile, and report transactions, a BAS agent, can also help with the advisory role. A BAS agent will help you with a meticulously reviewed business report, ensuring that your business is meeting its obligations and receiving the benefits to which it is entitled. Only a BAS Agent can interact with the ATO and fulfill a business’s obligations to the ATO on its behalf. Bookkeepers can’t interact with the authorities on a business’s behalf.
2. Ensures compliance-
Non-compliance with government regulations can put businesses in troublesome situations with the ATO. A BAS agent can help businesses fulfil compliance requirements and avoid penalties and fines. Your firm’s compliance system for indirect taxes such as GST may be designed in addition to the BAS and payroll issues. A BAS Agent can help reconcile your transactions and review your GST coding for any errors ensuring you are claiming the correct amount of GST. They can also review your PAYG Tax and ensure that your wages payable account is fully reconciled.
3. Provide Safety Net-
You are penalised with an administrative penalty for errors made by your bookkeeper. However, you will get a safety net for mistakes made by BAS agents. This is possible because of “safe harbour provisions”. Under this provision, if you have hired a registered tax or BAS agent with their respective services, you may not be liable for some administrative penalties imposed by the ATO. You may seek safe harbour if you provide your tax expert with the required information and they:
- Don’t take reasonable care, resulting in a false or misleading statement that causes a tax shortfall
- Fail to file a document by the due date.
The burden of proof is on you, so you must always keep records of when and what information is submitted to your BAS agent.
As for mistakes made by the bookkeeper, you can sue them for professional negligence if they are a contractor and not your employee for their reckless or intentional mistakes. If your bookkeeper has been reckless or has deliberately done the wrong thing, you may be able to sue them for professional negligence, provided they are a contractor and not your employee.
4. Help with Extension of BAS-
When you lodge your BAS through a registered BAS agent, you get a 4-week extension, which is useful if you cannot prepare your books in time. This is applicable for quarterly submissions only. You can get a further extension if required.
5. Simplify business bookkeeping-
Since BAS agents are experts in their field, they simplify bookkeeping and make accountants’ work easier by taking care of all-important bookkeeping tasks. A business can hire a BAS agent online or offline to streamline its accounting and bookkeeping.
6. Timely lodging and payments-
When a business hires a registered BAS agent, it doesn’t need to wait until the last minute to complete paperwork, timely file taxes, and make payments. BAS agents are responsible for completing these tasks. They finish the paperwork, make corrections, and make the proper payments, thus avoiding last-minute mistakes and stress.
Do All Bookkeepers Need To Be BAS Agents?
No, not all bookkeepers need to become BAS agents. The qualifications and experience specified by the Tax Agent Services Regulations 2022 (TASR) must be possessed by a BAS agent. A business must ensure one must be registered as a BAS agent if it hires a third party to provide BAS services.
A bookkeeper may become a BAS agent, requiring the Tax Practitioners Board to register them. A bookkeeper may also perform GST and payroll processing if supervised by a BAS agent. In other cases, bookkeepers are prohibited from performing any activity besides their bookkeeping services.
Final Thoughts: Who Should You Hire For Your Business? BAS Agent Or Bookkeeper
You can either hire bookkeepers or registered BAS agents. Each of these options has its own perks. To prepare and submit Business Activity Statements, you must employ a BAS agent. Only BAS agents can charge you to prepare and submit Business Activity Statements. However, an expert bookkeeper can do all that a BAS agent does but still under the supervision of the BAS agent. Ultimately, it is your business need that will define whether you should hire a bookkeeper or a BAS agent. Hiring an expert bookkeeping services provider who can provide a wide range of accounting and bookkeeping services with multiple professionals working to help you streamline your business finance is always a great alternative.
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