Home » Bookkeeping Guide » Are bookkeepers the next financial planners?

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Bookkeepers may well once have been simple bean counters, but the profession has long since progressed past its humble origins. Of course, whether or not the legislations governing their financial activities have, is always a question.

Why do I need to choose my bookkeeper in Melbourne carefully?

Most of us have been burnt- or have a friend or relative who has- by poor financial decisions from a bookkeeper. While bookkeeping scandals aren’t exactly commonplace, you hear enough horror stories to suggest that it’s an arena that needs a little more careful regulation, just as the financial planning arena did several years ago.

Of course, that’s not to say that every bookkeeper has engaged in practices that can be considered dodgy. In fact, it’s not to say that the industry is without regulation, either. Several important types of accounting activity, such as Business Activity Statements and more, require the bookkeeper to be registered with the Tax Practitioner’s board. Part and parcel of this registration is strict codes of conduct as well as scrupulous investigation into complaint levelled against members. The issue lies more in that not all bookkeeper in Melbourne activities actual require such registration and oversight. A broader regulatory framework is required. (Visit this site for more information : bookkeeperco.com.au)

Why should bookkeepers be regulated?

Careful financial oversight is part and parcel of the business world- or it should be, to ensure that fraudulent activities are kept to the minimum and do not significantly impact the activities of the economy and its members. Bookkeepers play a critical part in this infrastructure, controlling the books of the business. It can be thought of as the lifeblood of business activity, recording the vital information needed to compile further reports, see that tax is payed, and ensure fair handling of employees and much more. Without accurate financial data, huge knock-on effects throughout the economy and for the individual businesses in question will occur. The information provided by bookkeepers helps business owners make the decisions on the future of the company. Click here.

How would bookkeeping benefit from further regulation?

Regulation would serve a host of great purposes for the businesses, but would the bookkeepers themselves benefit? The short answer is yes. To begin with, greater regulation allows for whistleblowing, should bookkeepers face undue pressure towards illicit activities from employers or clients. It would also provide a degree of recognition to the profession, encouraging professional advancement and self-improvement. It would create greater certainty for hiring parties about the quality they are receiving, which would in turn boost market prices and the minimum expected standards clients receive. Ongoing professional development is critical in fields that morph and change as quickly as the financial field does, and the benefits of a better disciplinary system in place to tackle issues would not only weed out incompetent and fraudulent individuals, but provide a host of benefits across the board to bookkeepers and their clients alike.

If you’re looking for a good bookkeeper in Melbourne, it’s always an idea to ask your accountant which firm or practitioner they recommend. A bookkeeper trusted by your accountant is more likely to be worthy of the trust then individuals without that endorsement.

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