My name is Zoe Hadley, and for over 35 years I’ve been working with Australian businesses of all sizes start-ups, retail shops, trades, e-commerce stores, and not-for-profits. Over those decades, I’ve seen one common pain point across industries: BAS and GST returns.
Every few months, when BAS deadlines roll around, I meet stressed-out business owners. They’ve either rushed through their paperwork late at night, made costly mistakes, or missed compliance altogether. That’s when they usually ask me:
“Zoe, should I hire a bookkeeper or a BAS agent to do my GST returns?”
It’s a good question. And one that deserves a clear, real-world answer because choosing the wrong option can lead to ATO penalties, wasted money, and sleepless nights.
In this article, I’ll explain the differences between bookkeepers and BAS agents, the services each can (and cannot) provide, and share stories from my years in payroll and accounting to help you decide what’s right for your business.
Understanding the Basics: GST and BAS
Before diving into who should handle your returns, let’s quickly revisit what we’re talking about.
- GST (Goods and Services Tax): A 10% tax added to most goods and services sold in Australia. Businesses with over $75,000 in turnover must register for GST.
- BAS (Business Activity Statement): A form businesses must lodge with the ATO (Australian Taxation Office), reporting GST collected and paid, along with PAYG withholding and other tax obligations.
For many small business owners, BAS feels complicated. I’ve seen cafes struggle to track GST on takeaway vs. dine-in sales, tradies forget to account for GST-free supplies, and online sellers miss overseas sales rules. That’s where professional help comes in.
What Does a Bookkeeper Do?
A bookkeeper keeps your day-to-day financial records accurate. Think of them as the ones who keep your “financial house” tidy so you can find everything when you need it.
Typical tasks of a bookkeeper include:
- Recording income and expenses
- Managing invoices and receipts
- Reconciling bank accounts
- Tracking payroll and superannuation
- Preparing financial records for BAS agents or accountants
Bookkeepers often use software like Xero, QuickBooks, or MYOB to automate and simplify the process.
Now here’s the important part: not every bookkeeper can legally lodge your BAS.
What Is a BAS Agent?
A BAS agent is a registered professional who is authorised by the Tax Practitioners Board (TPB) to prepare and lodge BAS statements on your behalf.
Their services include:
- Lodging BAS with the ATO
- Providing advice on GST, PAYG withholding, and superannuation
- Correcting errors on previous BAS lodgements
- Representing you in dealings with the ATO for BAS matters
In short, BAS agents can legally handle compliance in a way bookkeepers can’t, unless the bookkeeper is also a registered BAS agent.
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Key Differences Between Bookkeepers and BAS Agents
Here’s a clear way to think about it, based on what I’ve seen with my clients:
| Task | Bookkeeper | BAS Agent |
|---|---|---|
| Record day-to-day financial transactions | Yes | Yes |
| Reconcile bank accounts | Yes | Yes |
| Prepare payroll and superannuation | Yes | Yes |
| Lodge BAS with the ATO | No (unless BAS registered) | Yes |
| Provide advice on GST, PAYG, super | No | Yes |
| Correct errors in past BAS lodgements | No | Yes |
So while bookkeepers are excellent for daily financial management, you need a BAS agent when it comes to official lodgements and compliance advice.
Real Story From My Practice
Years ago, I worked with a husband-and-wife team running a landscaping business. They had a lovely bookkeeper who kept their accounts neat. But the bookkeeper wasn’t a BAS agent.
When BAS time came around, the couple thought the bookkeeper could lodge everything. She tried to help, but a few GST-free items (plants purchased wholesale) were mistakenly included as taxable sales. The ATO picked up the error, and the couple ended up paying penalties and interest.
When they brought me in, I explained the difference between bookkeeping and BAS agent services. Once they engaged me as their BAS agent, we corrected the error, lodged properly, and set up clear processes so mistakes didn’t happen again.
That experience taught them a valuable lesson: just because someone manages your books doesn’t mean they can manage your compliance.
The Payroll Connection
Payroll is another area where small businesses often get tangled. Over 35 years, I’ve seen payroll mistakes cost business owners thousands underpaid super, missed PAYG withholding, or late STP (Single Touch Payroll) submissions.
Here’s what I always explain to clients:
- A bookkeeper can process wages, calculate hours, and prepare payslips.
- A BAS agent (or tax agent) ensures that PAYG and super obligations are reported correctly to the ATO.
I recall working with a retail business in Sydney. They had 10 casual staff, and their bookkeeper was great at keeping track of hours. But superannuation payments were always late, and the ATO sent warning letters. When I stepped in as their BAS agent, I not only fixed the late lodgements but also educated the owners on aligning payroll cycles with super and PAYG obligations.
Payroll isn’t just about paying staff it’s about keeping the business compliant.
Who Should Handle Your GST Returns?
Here’s my professional advice, after 35 years in the trenches:
- Use a bookkeeper for day-to-day management: invoices, bills, reconciliations, payroll processing.
- Engage a BAS agent (who may also be a bookkeeper) for BAS lodgement, GST advice, PAYG withholding, and super compliance.
- If your business grows and things get more complex like tax planning or structuring you’ll need a tax accountant.
Think of it like a medical team: the bookkeeper is your nurse, keeping everything in order daily; the BAS agent is your GP, diagnosing and handling compliance; and the tax accountant is your specialist when complex surgery is needed.
How to Choose the Right Professional
If you’re wondering who to hire, here are a few tips I share with business owners:
- Check registration: If someone offers to lodge BAS, make sure they’re a registered BAS agent with the TPB.
- Ask about experience: Have they worked with your type of business before (retail, e-commerce, trades, etc.)?
- Software knowledge: A good bookkeeper or BAS agent should be comfortable with cloud software like Xero or QuickBooks.
- Communication: You want someone who explains things in plain English, not confusing jargon.
- Reliability: BAS deadlines are strict choose someone who won’t miss them.
Final Thoughts From Zoe
After 35 years in accounting and payroll, I can tell you this: your GST and BAS are too important to take chances with.
I’ve seen the stress that comes from doing it yourself, and I’ve seen the relief when a trusted BAS agent steps in. Bookkeepers are fantastic allies, but when it comes to compliance, you want someone who’s authorised, experienced, and proactive.
At the end of the day, it’s not just about lodging a form it’s about protecting your business from penalties, keeping staff paid correctly, and freeing you to focus on growth.
So, the answer to the question: BAS agents should handle your GST returns, often in partnership with a skilled bookkeeper. That combination gives small business owners the best of both worlds tidy books and peace of mind with the ATO.
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