Should I hire a registered Australian bookkeeper?
Would you recommend hiring a registered bookkeeper that is part of the Australian Bookkeepers Association or does it not matter too much?
Some bookkeepers learn everything on the job and have years of experience in the bag. Gaining bookkeeping qualifications isn’t mandatory, but most bookkeepers study for a diploma or certificate in order to provide GST and BAS services and become better equipped with knowledge and skills to provide different bookkeeping services, prepare reports and work with different accounting systems. Most bookkeepers will have the certificate IV or higher in bookkeeping or accounting, which can then lead them onto study and qualify for the registered BAS agent registration. Becoming a registered BAS agent also requires an additional 1400 hours of relevant work experience.
If you hire a bookkeeper for GST or BAS services then you must ensure they are a registered BAS agent on the Tax Practitioners Board. This is really important because bookkeepers are not legally allowed to provide GST/BAS services if they are not registered. They’re only allowed to do so if they are an employee within your business.
It’s always worth checking to see if your bookkeeper is registered to provide the services you require. You can do this by searching on the Institute of Certified Bookkeeper’s website (if they are a registered member): https://www.icb.org.au/Find-a-Bookkeeper. By finding a bookkeeper who is also an ICB member, you can have confidence in knowing they are experienced, can provide the services and are covered by professional indemnity insurance. Remember, for BAS and GST services, a bookkeeper needs to be licensed. And for any tax matters, you must hire a registered tax agent or tax accountant (a BAS agent isn’t qualified to provide tac advice or services).
Jeffrey Fazal, Consultant at Creativus Design
Thats some great advice Cliona. I want to add that accounting firms often offer bookkeeping services as part of their service offering. If they are doing your taxes, it is worth talking with them about bookkeeping.
Registration is nice, but if the bookkeeper is under guidance from an accountant, that is even better. One of the tricks to bookkeeping is that it is only as useful as how you use it. For compliance purposes, a regular bookkeeper (regardless of whether they are registered) may match your expenses in broad categories.
However, if you work closely with a bookkeeper, you can find ways to track your expenses (and income) at a more granular level. This lets you determine what expenses are costing your business and the real profit from a particular service.
Another thing to consider is automating your bookkeeping to reduce a bookkeepers workload. If you have recurring expenses, most accounting software will let you create rules that automatically categorises them. There are even ways to send your invoices to the accounting software or a 3rd party that can make the process even more seamless.
A registered bookkeeper isn't going to magically understand these things since every organisation is different. You need to be proactive with your accounting if you want it done in the way that you expect.