Bookkeeping and tax services are two separate professions in Australia, and the qualifications and licencing requirements for each profession are different. While it is possible for a bookkeeper to become a tax agent, it is not as easy as many people may think. This article will explore when you should consider hiring a bookkeeper versus when the services of a tax agent are warranted.
The Role of a Bookkeeper
Bookkeeping is the process of recording and managing day-to-day financial transactions. This includes maintaining accurate and up-to-date records such as invoices, purchase orders, receipts, and other documents. Bookkeepers will also reconcile bank accounts to ensure accuracy and prepare financial statements to be used for tax purposes.
Most bookkeepers will have a Certificate IV in Accounting and Bookkeeping, or a Diploma of Accounting, which is necessary to become a Registered BAS Agent. This qualification is the standard for bookkeepers in Australia. For most businesses, a bookkeeper is all they need to manage their basic financial transactions.
Read more: Everything You Need To Know About Bookkeeping
The Role of a Tax Agent
Tax agents are authorised by the Australian Taxation Office (ATO) to prepare and lodge tax returns, provide advice on tax matters, and represent taxpayers in dealings with the ATO. To become a tax agent, you must have a recognised degree in accounting or taxation and be registered with the Tax Practitioners Board (TPB).
Tax agents are experts in tax law, so they can provide advice on how to minimise your tax obligations and comply with the ATO’s regulations. They can also assist you with tax planning, estate planning, and structuring your business.
Can a Bookkeeper Become a Tax Agent?
The short answer is yes, but it is not easy. To become a tax agent, they must meet the qualifications and licensing requirements set by the TPB. This includes having a recognised degree in accounting or taxation and passing a series of tests to demonstrate your knowledge and understanding of tax law.
Since most bookkeepers do not have the qualifications required to become tax agents, they would need to go back to school to obtain the necessary qualifications. Once they have the qualifications, they would then need to register with the TPB, pay the registration fees, and pass the tests before they can start offering tax services.
For this reason, most bookkeepers opt to work with a tax agent when they need assistance with tax matters. This allows them to focus on their core competencies while still being able to provide their clients with comprehensive tax services.
At Perth Mobile Tax, we offer both bookkeeping and tax services. Our experienced team can help you with all aspects of your financial management, from bookkeeping to tax planning and compliance. Get in touch to learn more about our services.
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