Guide ✦ Handover

Handing over BAS prep
without losing control

Every quarter the same scramble: coding cleaned up in a rush, GST accounts reconciled at the last minute, an agent chasing a shoebox. Almost none of that needs to be done by the person who signs the lodgement.

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BAS work splits cleanly in two, and the split is defined by law rather than preference. Preparation — the coding, the reconciling, the assembling — can be done by anyone competent. Lodgement and advice must come from someone registered with the Tax Practitioners Board.

The problem is that most small practices and businesses treat it as one job, so the registered person ends up doing four hours of data work to get to twenty minutes of judgement. That's the arbitrage, and it's why BAS prep is one of the highest-value things to hand over — provided the split is built into the process rather than assumed.

This guide sets out where the line sits, what a prepared pack should contain, and how to structure the quarter so the agent's review is genuinely a review.

Before you read on

Who this is for

Worth your time if

  • You're a BAS or tax agent doing your own data cleanup before every lodgement
  • You run a business with quarterly BAS and the prep always lands on you
  • Your agent charges you for time that is really data entry
  • Your GST control accounts get reconciled once a quarter, under pressure

Probably not if

  • You want someone to lodge on your behalf — that requires TPB registration
  • You need advice on GST treatment of unusual transactions
  • Your books are more than two quarters behind (do a catch-up engagement first)
The preparation

What can be done before the agent looks at it

Everything here is preparation. None of it constitutes a BAS service under the TASA definition once the agent reviews and lodges.

GST coding review

A pass across every transaction in the period checking GST treatment — GST-free food, input-taxed rent, purchases from non-registered suppliers, international transactions with no GST. Anything ambiguous goes on the query list rather than being decided.

Suspense and uncoded clearing

Chasing down every transaction sitting in suspense or an "ask my accountant" account, with source documents attached, so the agent isn't making decisions from a bank narration.

GST control reconciliation

Reconciling the GST collected and GST paid control accounts back to the transaction listing for the period, and explaining any variance in writing. This is the single most useful thing a preparer can hand an agent.

PAYG withholding check

Reconciling the PAYGW figure against the payroll reports for the period, so the W2 field matches the payroll ledger rather than being taken on faith.

Fuel tax credits and other claims

Assembling the underlying records — litres, vehicle logs, rate tables — into a working paper the agent can check in a minute rather than rebuild.

The lodgement pack

A single folder or workpaper set per quarter: draft figures, reconciliations, the query list with answers, and a short written note of anything unusual. The agent reviews the pack, not the ledger.

What only a registered agent can do

The Tax Agent Services Act defines a "BAS service" broadly — it covers ascertaining or advising on liabilities and obligations, and dealing with the Commissioner. Preparation under review is fine; the moment it becomes advice or lodgement, registration is required.

  • Lodging the BASLodgement for a fee or reward is a BAS service. Your registered agent lodges — not the preparer, not you on their behalf.
  • Advising on GST treatment"Should this be GST-free?" is advice. The preparer flags it; the agent answers it.
  • Dealing with the ATOPhone calls, portal correspondence and payment arrangements go through the agent or the business, never the preparer.
  • Signing the declarationThe declaration is a legal statement by the entity or its agent. It is never delegated offshore.
From the handovers we run

How to structure the quarter

The fix is moving the work off the deadline. Almost every BAS scramble is a scheduling problem wearing a compliance costume.

1

Move coding to weekly

The prep is only painful because it's done once a quarter. Weekly coding means the quarter-end pass is a review, not an excavation. This alone removes most of the pressure and it's the first thing we set up.

2

Build the query list as you go

A running list, one row per unclear transaction, with the source document attached. The agent answers it in one sitting instead of being interrupted eleven times.

3

Reconcile GST control monthly

Doing this monthly means a variance is a small hunt, not a forensic exercise. If the control account has drifted, you want to know in week three, not week eleven.

4

Deliver the pack a week before the deadline

A pack that arrives on the due date isn't reviewed, it's rubber-stamped. A week's buffer is what turns the agent's role back into genuine review.

5

Debrief once a quarter

Fifteen minutes on what came back as queries. Every quarter the query list should get shorter — if it doesn't, the coding rules need writing down rather than the person needing replacing.

The mistake that costs a fortnight

Letting the preparer "fix" prior periods

A conscientious new starter finds a coding error from two quarters ago and corrects it. The period wasn't locked, the prior BAS is now wrong, and nobody notices until the next reconciliation doesn't balance. Set lock dates before day one, make the rule explicit — prior-period issues go on the query list, never straight into the ledger — and check the audit history in the first month. This is the single most common way a good BAS handover goes sideways, and it takes about ten seconds to prevent.

Keep reading

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Questions

Frequently asked

Isn't this just outsourcing our compliance risk?
The opposite, if it's structured properly. The risk in BAS work sits in lodgement and advice, and neither moves — your registered agent still reviews and signs. What moves is the data work underneath, which is where errors currently creep in because it's done at midnight before the deadline. A prepared, reconciled pack reviewed with a week to spare is a lower-risk process than a rushed one done by the right person.
What if the ATO queries something the VA prepared?
Your agent responds, exactly as they would today. The working papers are better than most practices produce internally — reconciliations, query lists and source documents assembled per quarter — which usually makes the response faster rather than slower.
Do we need to tell our accountant?
Yes, and involve them in setting it up. The agents who resist this are usually picturing an unreviewed offshore lodgement; once they see the pack format and the lock dates, most ask whether their other clients can do the same thing.
Is there a minimum term?
Three months, then month to month. It's the same runway you'd give a new local hire to learn your systems, your clients and your standards — and the team members who get a fair run are the ones who stay for years. There are no exit penalties at any point, and if the issue is the person rather than the role, the first-week refund and free replacement cover that separately.
How do you handle confidentiality?
The same way you'd treat any remote team member. Every placement signs an NDA and a confidentiality clause before day one, and they work inside your systems — your email, your CRM, your file storage — so you control what they can see and can revoke access instantly. No client data is stored on our side.