BAS Agent – What is it and why do I Need It?
Most business owners are familiar with the term “accountant” and know that bookkeepers keep accounting records up to date. But how many business owners know the difference between a Bookkeeping and BAS agent? Or the difference between a BAS agent and a tax agent?
IMPORTANT: If you also want to hire a BAS agent, click on BAS Agent in Australia.
Accountants can process, settle and report transactions. But unable to do so, they can ask but cannot answer. While BAS representatives can recommend and represent clients with ATO regarding BAS services.
So what is BAS service?
This includes GST and valid GST designation which is collected or paid through business. Establish a compliance system (such as software) for taxable annual reports (TPARs), advance warranties, PAYGW reporting, and accurate reporting in these areas.
What does it mean to represent BAS?
BAS agents must be registered with the Council of Tax Practitioners, and must meet certain criteria to apply:
- The BAS representative must be a fit and fit person.
- Minimum Certificate Qualification in Bookkeeping / Accounting
- Get enough, consistent and relevant experience.
- Get the proper level of professional liability insurance.
- Get a certain amount of vocational education every year.
- Follow the Code of Conduct established by the Council of Tax Professionals.
You can check the Council of Tax Practitioners Register to see if your advisor is registered at tpb.gov.au.
How does a BAS agent differ from a tax agent?
Tax agents can advise and explain everything that a BAS agent can do, but in addition, they can advise on income tax and margin profit tax. The preparation of tax returns is the highest, requiring a high level of qualification, training, and additional continuing vocational training each year. But it comes at a higher price because of the higher prices. Companies often hire BAS agents to maintain their existing bookkeeping and prepare and file BAS, but they only hire tax agents twice a year to advise on tax planning. Are Tax returns.
So one can say that he is an accountant. But when you hire a BAS agent, you know that you are hiring an officially approved person.
2. Important Financial Reports
You regularly review the following reports about your business to understand what they are like and how they are performing.
2.1 Profit and Loss
This is the most promising report you will see as a business owner. Because it reflects the performance of the work over some time. But there are many options for making this report and how much it costs. Do you use cash or month to month, year to year? Did you know that you pay off debts or take pictures? These costs may not be reflected in this report. You can see huge profits. But there is no money in the bank!
2.2 Balance Sheet
This is important because it reflects the current financial position, as particular business history. Some of the benefits of reporting your profits and losses as a debt settlement or owner may be hidden here.
2.3 Cash Flow Forecast
This is important if you want to plan for the growth of your business. It helps you evaluate the performance of your business in the coming months or years and helps you determine the answers to questions such as whether you can hire more employees or buy more stock. can.
2.4 Accounts Receivable
Elderly Accounts Receivable It is amazing how many business owners have sold their books for free. You must keep an eye on your customers and make timely payments. This report can help.
2.5 Old payments
And finally, to whom do you owe? It is important to ensure that you maintain good relationships with your suppliers. If you get a bad reputation, you will lose the bargaining power and often have to pay cash on delivery. This will hurt your cash flow.
If you need help understanding these reports or how to prepare them with your software. We are happy to help!