BAS Agent. Tax Agent. Accountant. Why are there so many terms for a financial service provider when these professionals are just supposed to help you make sure that you stay on the good side of the law and not flush your entire savings away on a bad balance sheet?
The terminology for the different roles associated with finance-related professions can get a little mixed up. In many instances, the roles mentioned are used interchangeably — but are they actually indistinguishable?
The short answer is no. They are distinct roles, created in order to indicate an individual’s focus on a particular financial service.
We’ll explain it to you here:
Financial Services for Compliance
As a business owner or stakeholder, you won’t be able to avoid coming into contact with various government entities that have different compliance requirements. If you’re worried that you aren’t well-versed in them, that’s fine. This is what compliance financial services providers, specifically your BAS Agent and Tax Agent, are for.
BAS Agent – Often, bookkeepers not only make sure your books are balanced; they also have the added qualification to assist small business owners with preparing and lodging their BAS returns (which covers GST and PAYG/STP withholding dues).
A bookkeeper will not be granted a BAS Agents Registration with the Tax Practitioners Board (TPB) and able to render services as a BAS Agent until they have:
- Met specific TPB education requirements (Cert IV in Bookkeeping as a minimum)
- 1000 hours of experience in providing the services
- Professional indemnity insurance
- Passed the fit-and-proper-person test
Tax Agent – Senior Bookkeepers or Accounting professionals in this role pay particular focus to tax law and compliance when tax season rolls around. These registered Tax Agents who work with small businesses are responsible for tax planning, preparation of income tax returns and helping keep your tax liabilities at manageable levels. Thus, they are critical (if not sometimes seasonal) to a business, especially growing ones.
Tactical Efficiency
It’s one thing to have organised records and be compliant with government requirements; knowing how to use the data gathered from your books to make systems more efficient is another thing. So, don’t just rely on compliance services that keep things in order. You’ll need an experienced eye to optimise your day-to-day processes.
Accountants – accountants are typically also registered Tax Agents. They serve as your partner in coming up with a business game plan to make processes more effective and efficient. They are also instrumental in helping owners make key business decisions, including strategy planning, wealth and risk management and tax planning.
While accountants should know how compliance roles are executed, they will be of more use looking after the finer details of the way a business is run.
Now that we’ve shown how these services providers differ in their area of financial expertise, you probably have a rough idea of what your business needs to succeed and how you can leverage these financial skills to your advantage.
All that’s left is to find a trustworthy partner for this endeavour.
Partner with a Provider of Comprehensive Financial Services
Smart and successful business owners know the limits of their skills and when to ask an expert for help. Your Finance Department’s team is made up of professionals who can fulfill all these roles for you, and at the right time, too!
Learn more about how we can help with your tax and BAS compliance and accounting needs.Call us today.
