When do you need a bookkeeper and BAS agent?

Managing the financial side of a small business can be a complex and time-consuming task. For many Australian entrepreneurs, understanding when to bring in a bookkeeper or a BAS agent is crucial for maintaining compliance and ensuring smooth operations.

In this blog, we’ll explore the roles of both professionals and when you might need their expertise.

Understanding the Roles

What Does a Bookkeeper Do?

A bookkeeper is primarily responsible for managing your daily financial transactions. Their duties typically include:

• Recording sales and expenses
• Managing accounts payable and receivable
• Reconciling bank statements
• Preparing financial reports
• Assisting with payroll processing

What Does a BAS Agent Do?

A BAS (Business Activity Statement) agent specializes in managing GST, PAYG (Pay As You Go), and other tax-related obligations. Their responsibilities often include:

• Preparing and lodging your BAS
• Advising on GST registration and compliance
• Ensuring you meet your tax obligations
• Providing insights into your tax position

When Do You Need a Bookkeeper?

1. Your Business Is Growing

If your business has expanded in terms of sales, customers, or employees, you may find it challenging to keep up with the increasing volume of transactions. A bookkeeper can help you manage your financial records efficiently, allowing you to focus on scaling your business.

2. You’re Overwhelmed by Financial Tasks

If you’re spending too much time on bookkeeping instead of running your business, it’s a sign you need professional help. A bookkeeper can take over daily financial tasks, giving you more time to concentrate on your core operations and growth strategies.

3. You Lack Financial Expertise

If you’re not confident in your ability to maintain accurate financial records or prepare financial statements, hiring a bookkeeper is a smart move. They have the expertise to ensure your records are accurate and compliant with Australian regulations.

When Do You Need a BAS Agent?

1. You’re Registered for GST

If your business’s annual turnover exceeds $75,000 (or $150,000 for non-profit organizations), you must register for GST and submit BAS. A BAS agent can help ensure you comply with these obligations, reducing the risk of penalties.

2. You’re Unsure About Your Tax Obligations

Navigating the complexities of GST, PAYG, and other tax requirements can be overwhelming. If you’re unsure about your obligations or find tax time stressful, a BAS agent can provide clarity and guidance.

3. You Want to Maximize Deductions

A BAS agent can help identify tax deductions you may be missing, ensuring you take full advantage of available tax benefits. This can have a significant positive impact on your bottom line.

When You Need Both a Bookkeeper and a BAS Agent

In some cases, the financial demands of your business may require both a bookkeeper and a BAS agent. Here are a few scenarios where this might be the case:

1. You Have Complex Financial Transactions

If your business involves multiple revenue streams, international sales, or complex inventory management, a bookkeeper can maintain accurate records, while a BAS agent ensures you comply with tax regulations related to those transactions.

2. You’re Planning for Growth or Investment

If you’re looking to expand your business, take on investors, or secure loans, having both a bookkeeper and a BAS agent can provide comprehensive support. They can help prepare accurate financial statements and projections that demonstrate your business’s viability.

3. You Need Regular Financial Insights

To make informed business decisions, you need regular financial reports and insights. A bookkeeper can provide these reports, while a BAS agent ensures your compliance and tax efficiency.

Conclusion

Knowing when to hire a bookkeeper or a BAS agent is essential for Australian small business owners. If you find yourself overwhelmed, uncertain about tax obligations, or facing the complexities of a growing business, it’s time to consider professional help.

By investing in a bookkeeper and a BAS agent, you can ensure accurate financial management and compliance, allowing you to focus on what truly matters: growing your business. 



At Winner and Co Bookkeeping Services we are both a BAS Agent and certificate qualified Bookkeeper so we can help you navigate your financial landscape with confidence and clarity.