Does the accountant know that you think he is supervising or even checking your work?
We picked up this interesting article from an Accounting Firms newsletter.
“Last month, we received a phone call from the Tax Practitioners Board, asking if we supervised the bookkeeper preparing the BAS for a client company – we do not".
The Tax Practitioners Board investigated this bookkeeper and the work that had been performed for the company. As a result, it was determined that the contracted bookkeeper was not a Registered Bas Agent and therefore in breach of legislation. Fortunately for both the bookkeeper and the company no fines were issued and in this case they have allowed ‘back registration’.
This has highlighted the need for businesses who employ contract bookkeepers to prepare their company BAS statements to ensure they are a Registered Bas Agent and have Professional Indemnity Insurance. Penalties are steep and the disruption and/or additional cost to your business could be very damaging.
Bookkeepers are a key component in helping our clients receive timely figures and their skills and accuracy makes our life easier as well, but just make sure they comply with this changed law.”
I wonder just how many Bookkeepers are using this out clause – “the accountant is supervising”. Note the response.
For ICB members if you are making any assumptions that the accountant is checking your work – make sure they know!