What Is The Difference Between Bookkeepers And Accountants?
Accounting or bookkeeping refers to any job that is related to financial management or number crunching. However, people often think that bookkeepers, accountants, tax agents, and BAS agents fall in the same category, which is indeed a big mistake.
You will need specific qualifications and have to fulfil specific job functions for each category of job position. Controlling authorities are also different. One important point to note is that you will need both BAS agents and bookkeepers in Perth so that the books remain in proper order and the whole work gets smooth and accurate. And for maximum accuracy, you will need a registered agent who will do the job for you by following the guidelines and rules.
To start working as accountants, bookkeepers, or BAS agents, people need proper training and certifications. Here we discuss the key differences between a bookkeeper and a BAS agent.
What Are The Roles And Responsibilities Of A Bookkeeper?
In general, a bookkeeper’s role is to keep updated financial records for every pay cycle and at the end of the financial year. If a person in your company is assigned this job, he can be easily termed a bookkeeper.
The first and foremost eligibility to become a bookkeeper is to have a Certificate IV qualification. A professional bookkeeper will monitor the consistent cash flow of your business. They will process the ongoing transactions and reconcile and report them to the administration.
On the other hand, a person who has a financial background and a proper accounting degree will be called an accountant. An accountant in Perth will also have similar responsibilities as a bookkeeper.
However, an accountant with a CA or CPA qualification can do something more for you. They can significantly contribute to financial management. They will be able to give you valuable advice and help you in a variety of jobs like cash flow predictions, sales planning, preparing budgets, profit and loss analysis, etc.
That is why business owners prefer these highly qualified accountants moreover regular bookkeepers. The daily responsibilities of a professional bookkeeper are as follows.
- They keep a record of all the monetary transactions, and for the least number of human errors and real-time data, they use relevant accounting software.
- They prepare and timely send out the important invoices and follow up with the recipients. They also send the receipts to the debtors.
- Payroll management is a vital part of a business’s administrative system because it impacts employee performance. It is a lengthy process that involves payroll tax calculations, pay-check distribution, overtime calculations, etc. A professional bookkeeper will do the job for you. In addition, bookkeepers in Perth will also preserve employee records and manage different benefits that employees enjoy.
- Bank reconciliation is another job that a bookkeeper performs.
- A bookkeeper will ease the job of a BAS agent by preparing the Business Activity Statement (BAS).
- If there is any mistake in the data, an experienced bookkeeper can easily detect it and make the authority aware. A bookkeeper offers a vital service because a minor mistake can lead to a considerable loss for your company.
- Last but not least, when a bookkeeper will look after the financial records, you will not need to worry about the balance sheets, financial documents, or income statements.
Why Will You Need a BAS Agent For Your Business?
As per Australian law, you will need to submit a BAS for your small business if your annual GST turnover reaches or exceeds the threshold value of $75000. A BAS agent will provide you the necessary assistance and advice and represent your business in front of the Australian Taxation Office or ATO. A BAS agent generally maintains their registration throughout different educational requirements, and they also require to maintain the Code of Professional Conduct.
In addition, they also need to maintain the Professional Indemnity Insurance. Keeping a BAS agent will also be beneficial because they can fulfil all the responsibilities of a professional bookkeeper and other functions required to operate a business company in Perth. Their roles and responsibilities are as follows.
- They will help you prepare the Business Activity Statement and lodge it properly. In addition, they can also provide essential recommendations on payroll obligations and BAS, involving various entitlements and liabilities.
- A BAS agent designs, supervise, and gives valuable advice on the GST and payroll compliance systems.
- They thoroughly analyse the financial reports and, based on it too, provide valuable suggestions around indirect taxes and the GST system.
- Regarding BAS and payroll, you have to provide various documents like Tax File Number, payment summaries, application for ABN (Australian Business Number), etc. Your registered BAS agent can take care of the whole matter.
- Thus, you can see that a BAS agent can help you in various other tax management like fuel tax, luxury car taxes, GST, PAYG dues, etc.
Do The Bookkeepers Need To Be BAS Agents?
No, all bookkeepers need not become BAS agents. But, if you need a BAS agent Perth for your business and want to hire a third party, you should check if the agent is registered and comply with the Code of Professional Conduct. A registered agent should have the necessary experience and qualifications mentioned in the Tax Agent Services Regulations 2009.
However, if a bookkeeper wants to become a BAS agent, they should register with the Tax Practitioners Board. The key difference between the service of a bookkeeper and a BAS agent is that a BAS agent can provide more services compared to that provided by the bookkeeper. If supervised by a registered BAS agent, a bookkeeper can process financial transactions involving payroll and GST.
As you have become aware of the different services provided by each professional, you can rightly decide if you need a bookkeeping Perth or a registered BAS agent for your business. Based on it, you should get in touch with the high-ranked service provider based in Perth.