Choosing a Bookkeeper

As a registered bookkeeper with the ATO and MYOB professional partner, we encourage you to read the following useful information provided by the Association of Accounting Technicians (AAT) Australia

Useful for: A quick checklist to help you ask the right questions when you’re looking for a bookkeeper.
As a small business owner, are financial concerns weighing you down?  If so, a bookkeeper could be a great answer to help you stay on top of the paperwork – but there are a few important things to know before you rush out to find one. The extra burden of preparing and lodging Business Activity Statements (BAS) has seen some work that was traditionally done by professional accountants being passed onto accounting paraprofessionals most commonly known as bookkeepers. All businesses required to prepare a BAS most likely now employ an accounts person or external bookkeeper.  Demand for accounting support services has grown enormously and there’s been in an influx of inexperienced practitioners offering their services. There’s also not much regulation in this field, which often results in errors or omissions in BAS, which will probably incur penalties from the Tax Office (ATO). So to avoid the additional cost of an accountant reworking your BAS or running the risk of an ATO audit (nobody needs that stress in their lives!), it’s important that you find a qualified and experienced bookkeeper.

When you’re out searching, ask yourself these questions: Does your bookkeeper have a formal qualification?
As it currently stands, bookkeepers don’t need to have a qualification.  This means there are many people working in the industry that are not qualified to do so.  Before engaging a bookkeeper, ask them about their qualifications and experience.  Professional bookkeeping associations such as AAT Australia, recommend a minimum qualification of Certificate IV Financial Services (Accounting) or Certificate IV Financial Services (Bookkeeping).  It’s also important to check that your bookkeeper’s qualification is issued by a nationally-recognised Registered Training Organisation.

Do they have the backing of a professional association? 
Members of a professional association such as AAT Australia receive regular communications on the latest industry changes on various topics such as BAS, Tax, Payroll etc. and have access to professional education to keep their skills up to date. If your bookkeeper is also a member of a professional association, they are bound to that association’s code of ethics and will be subject to disciplinary processes to make sure they maintain high standards.

Does your bookkeeper have Professional Indemnity insurance?
If not, you may be liable for penalties imposed by the ATO for errors or omissions on your BAS.  Therefore it’s important to check if your bookkeeper has sufficient professional indemnity insurance cover, particularly if they are working under the direction of a registered tax agent.

Are they aware of the current taxation laws that impact upon bookkeepers collecting a fee for compiling and lodging BAS?
Bookkeepers often enter transactions and process data for the preparation of BAS.  Under Section 251L of the Income Tax Assessment Act 1936, unless they are a registered tax agent, bookkeepers are prevented from receiving a fee for preparing and lodging BAS on their client’s behalf.  Bookkeepers can be exempt from this law if they are: -- A member of a recognised professional association (CPA Australia; National Institute of Accountants; The Institute of Chartered Accountants in Australia; Taxation Institute of Australia; Association of Taxation and Management Accountants Australia; Association of Chartered Certified Accountants; Chartered Institute of Management Accountants); or -- Working under the direction of a registered tax agent. However, the soon to be released Tax Agent Legislation (still in draft stage) will allow bookkeepers who are registered by the national Tax Practitioners Board; hold professional indemnity insurance; abide by a code of professional conduct; and hold a minimum qualification; to prepare and lodge BAS for a service fee.

Does your bookkeeper follow a professional code of conduct?
Under the draft legislation, registered bookkeepers will be governed by a professional Code of Ethics.  However, members of professional associations must now abide by the association’s ethical guidelines to offer you further peace of mind. The Association of Accounting Technicians (AAT) Australia is an association for paraprofessional accounting technicians, including bookkeepers, and is supported by the three professional accounting bodies – CPA Australia, the Institute of Chartered Accountants in Australia and the National Institute of Accountants.  AAT Australia has adopted a nationally recognised qualification standard that its member’s must hold to join the association and has comprehensive ethical provisions and imposes those standards through a disciplinary process offering the highest level of consumer protection.