16/05/2007
Response to Accounting Associations
"ICB information to members on the involvement of the Accounting Associations”
The Deputy Commissioner responsible for the current developments in the Bookkeeper/BAS Service area, Mr James O’Halloran has responded to ICB concerns that the Commissioner has been used to endorse only one Assocation, that appears to be representing bookkeepers. Mr O’Halloran has responded that that isn’t the case and neither is it the intention nor policy of the ATO.
Mr O’Hallorans complete response can be obtained, click here.
"A paper addressing facts, opinion and comments on the actions of some of the Accounting Associations”
20th May 2007
INFORMATION SHEET
Response to ICAA & CPA loan of funds to AAT made public by press release dated 16th May 2007.
COMMENT:
In the past, ICB (Australia) had respected the NIA initiative in embarking on an undertaking into the realm of the non-accountants. The formation of the AAT based on a licence from the AAT UK, NIA seemed to have been working on creating the level of an “Accounting Technician” in Australia.
An “Accounting Technician” in the UK is a term more commonly attached to the person who works in the back office of the accounting firms. In Australia the closest type of role we have had is that of the bookkeeper, and if the proposed legislation proceeds it would now appear to attach itself to the new BAS Service Provider. However the Accounting Technician is still not a role that really exists in Australia.
The NIA entered this part of the bookkeeping industry through AAT in 2002.
OPINION:
The accounting industry is different to the bookkeeping industry. The stereotypical bookkeeper is not described the same way nor does the same work as the stereotypical accountant.
We, ICB do not believe that bookkeepers are best represented by accounting associations.
Based on the information made known - in relation to AAT:
The NIA have been owed $450,000 by registered mortgage debenture since 30 June 2006. This amount has been gradually increasing since 2002.
NIA is owed another $62,000 as of 30 June 2006
ICAA & CPA have agreed to join with NIA to loan additional funds to AAT.
The loans will need to be repaid
QUESTION: What does that mean for the future provision of resources and assistance to the bookkeeping community?
FACT: The Australian Taxation Office has been working with the Bookkeeping Professional associations including ICB & AAT for some time. Since the creation of the ATO bookkeepers’ consultative group, now known as the Bookkeepers Advisory Group, it has been the ATO’s stated policy “for the bookkeeping professional associations to work together”. So nothing has changed.
We do not believe that the ATO endorses any one particular bookkeeper association and this has not been their position in the past. We believe that the commissioner is being quoted out of context and we have approached the ATO about this unusual use of their office.
ICB is about the professionalism of the bookkeeper
ICB is about assisting all bookkeepers, whether employees or subcontractors, to do their work in the most professional manner. Bookkeepers require appropriate accreditation to the level of their skills and assistance to do the work that they are engaged to do.
ICB is about bookkeepers helping bookkeepers.
ICB accredits bookkeepers to their level of skill.
ICB endorses the concept behind the proposed Certificate IV Financial Services (Bookkeeping) and suggests that it will be appropriate for the higher level of bookkeepers.
ICB has and continues to propose that:
1) if you intend to advise a business on how GST works, how to complete their BAS and to sign off that a BAS has been prepared correctly, then, you are “interpreting” law and a businesses circumstances and therefore you should be appropriately qualified to do so. This fits with the concept of the registered BAS Service Provider.
2) if you follow procedures, guidelines while processing books for a business then you also need to be appropriately qualified but qualified to process transactions, you don’t need to be qualified to interpret law if you are an implementer.
ICB is about all bookkeepers.
To download a copy of this response, please click here
