If you outsource your accounting to an external company or contractor, you need to ensure that they have the knowledge and skills to maintain your organization’s books and accounts in accordance with regulatory requirements. If they also need to help you prepare your annual report and meet strict ATO requirements and deadlines, they should be a BAS officer. This task is far too important to be left to someone who is not qualified. If something goes wrong, the risk is borne by you, the business owner. Here are some of the reasons why you should employ an accountant who is also a BAS agent.
BAS Agent: What does it mean by Accounting Expert?
A BAS agent or accounting is a person or company that provides services to help businesses meet their accounting (BAS) obligations. They can manage GST obligations, such as preparing instalment reports and business activity reports.
- Accountants, on the other hand, perform more general tasks such as data entry, record keeping. and coding transactions into accounting software. If a business is registered for excise taxes, the accountant cannot perform these tasks unless supervised by a BAS agent.
What does it mean by SAR Agents Act?
Under the Tax Agent Services Act 2009 and the Tax Agent Services Regulations 2009, the best BAS agent Australia must have the necessary qualifications and experience to assist businesses with GST, PAYG, FBT, pension and other requirements. This includes
- Level 4 certificate in financial accounting or accounting services
- Registration with the Tax Practitioners Board, including the continuing professional education (CPE) hours required to maintain registration.
- By law, only a registered BAS agent (or tax agent) can charge you for the function of managing your BAS, coded transactions and other GST registered activities, as well as for the function of representing you to the ATO.
BAS Agent Compliance
BAS staff’s job is not just to enter numbers into the accounting system. They can also design and implement systems to manage future transaction processing. Ensure ongoing compliance with ATO regulations. Their experience and advice can be invaluable for planning and decision making. Especially in the early stages of business growth and development.
People starting out in business tend to do all the work to save money. However, they soon realize that some tasks are best left to the professionals. Contractors who have done the BAS work themselves will tell you. It wastes a lot of time that could be spent on other tasks. One of the first tasks a new business owner needs to tackle is preparing the books. and handling the BAS requirements.
Responsibility for mistakes
Generally, errors made by accountants are the responsibility of the client. The ATO can fine you if you don’t provide the required information. even if you say you don’t need it. As an exception, there is a safe harbour rule that means a CPA is not liable. if you fail to provide documents or make false. You can take advantage of this rule by providing your tax advisor with the necessary information. You made a false or misleading statement because you did not make reasonable efforts. As a result, did not pay the tax due.
If the false or late filing was the result of the accountant’s to the law, the safe harbour cannot be invoked.
If your accountant was negligent or if you are a contractor rather than one of your employees. Please note that the burden of proof is on you to prove that you provided the required information to the accountant.