State of the Industry 2010 Bookkeepers who provide BAS services for a fee

Transcription

1 State of the Industry 2010 Bookkeepers who provide BAS services for a fee Final Report Prepared for: The Australian Tax Office June 2010 GfK Blue Moon Sydney L Chandos St St Leonards NSW 2065 AUSTRALIA Tel Fax Melbourne 407 Bridge Rd Richmond VIC 3121 AUSTRALIA Tel Fax page 1

2 TABLE OF CONTENTS Page 1 EXECUTIVE SUMMARY Survey overview Registration Working situation Clients and services provided BAS Lodgment Interaction with the ATO Product awareness and usage Conclusions BACKGROUND AND OBJECTIVES Background Research objectives Overview of fieldwork Reporting exceptions THE ENVIRONMENT Sample profile Personal working situation Job Satisfaction Working situation Clients BAS Lodgment Contact with other professionals Interaction with the ATO Product awareness and usage Tax Compliance REGISTRATION AND PROFESSIONAL DEVELOPMENT Registration Professional background and development...79 APPENDICES APPENDIX A: TECHNICAL APPENDIX APPENDIX B: THE SURVEY APPENDIX C: USING THIS RESEARCH page 2

3 EXECUTIVE SUMMARY 1.1 Survey overview The 2010 State of the Industry BAS Service providers study was conducted by mail. In total n=550 valid responses were received and analysed. A questionnaire was designed in collaboration with the ATO that consisted of questions included in previous surveys (which were kept as consistent as practically possible) together with new questions included to address emergent themes and issues. The study explores and quantifies bookkeepers opinions in relation to: Issues impacting on this section of the bookkeeping industry such as: awareness and understanding of the requirements of the new regulatory environment the preparedness for and/or propensity to register as a BAS agent capability issues such as qualifications, CPD and professional association membership The environment exploring: how bookkeeping businesses currently operate the services they provide their clients how interactions with clients and the ATO are conducted, and awareness, usage, perceptions of effectiveness and satisfaction with products, services and channels provided by the ATO 1.2 Registration Awareness of the new requirement for bookkeepers who provide BAS services for a fee to register was high: 89% reported that they had heard about it. Over six in ten of the bookkeepers in the study (63%) indicated that they intend to register as a BAS agent within six months of 1 March A further 14% indicated that they intend to do so later on. Almost a quarter (24%) either did not answer the question (because those who were not aware of the requirement to register were skipped over the question) or indicated that they do not intend to register. In terms of eligibility, over seven in ten (71%) of the bookkeepers surveyed reported that they had the requisite number of hours of work experience to qualify for registration (1,000 hours with other criteria). Almost a third (30%) reported that they had less than this. page 3

4 The main concerns cited about registering as a BAS agent related to the perceived costs associated with doing so the costs of Professional Indemnity (PI) insurance (44%), the cost of CPD and training (44%) and the cost of registration itself (33%). There was some indication that these perceived costs may be a factor in some bookkeepers delaying their registration by 6 months, with a significantly greater proportion of those intending to register within 12 months mentioning these issues as concerns. When asked about their preparedness for registering, most (91%) were of the opinion that they are a fit a proper person ; whilst 59% agreed that they had attained the minimum required educational qualifications and achieved 1,400 hours of relevant work experience. However, only half (52%) indicated that they had PI insurance, and only a quarter (25%) agreed that they were a voting member of a recognised BAS agent or tax agent association, achieved a minimum of 1,000 hours of relevant work experience and attained the minimum required education qualifications. Regards membership of a professional association, 47% indicated that they were not a member of any of the organisations representing bookkeepers and accountants. This is not an issue of awareness (only 11% indicated that they were not aware of any), but indicates that whilst there are generally quite high levels of awareness of the bodies associated with the profession there is, to some degree, a lack of willingness to join them. Reassuringly however, only 17% indicated that they do not know what preparation they need to do to register as a BAS agent, which does indicate that there is a perceived level of understanding of the requirements, rather than just an awareness of the initiative. 1.3 Working situation Most (87%) respondents were Sole Trader Bookkeepers, as opposed to Bookkeeping business managers (12%) or Bookkeeping business employees (1%). In general, job satisfaction was high amongst the surveyed bookkeepers, and had improved since the 2005 survey. In the latest 2010 survey, 89% were very / fairly satisfied compared with 80% in the 2005 survey. Moreover, 54% said they were generally very satisfied compared to 39% in Almost two thirds of the bookkeepers surveyed indicated that they intend to remain in the tax profession and expect to grow and prosper over the next 2-3 years. Eleven percent indicated that they intend to retire over the next 2-3 years, whilst page 4

5 7% reported that they were most likely to leave the tax profession in this period to work in another field or capacity. The reported average (mean) number of hours worked by respondents in the 2010 survey had increased significantly from the 2006 survey (from 29.4 to 33 hours per week), although it was in statistically comparable with the average in 2005 (32.4 hours per week). Sixty-two percent reported that they felt their hours were about right, whilst 20% thought their hours were somewhat or very excessive, and 17% said that they would like to work more. These feelings were also comparable with the 2005 results. 1.4 Clients and services provided Since the 2006 survey, there has been a significant increase in the average proportion of time spent working at the client s premises (50% in 2006, 62% in 2010), and a significant decrease in the proportion of time spent working at home (34% in 2006, 28% in 2010) and at their business premises (16% in 2006, 9% in 2010). Around half of those surveyed (49%) reported that the total number of clients had remained the same over the past 12 months. A third (33%) indicated that their total number of clients had increased, and almost one in five (18%) reported that they had decreased. Just over a third (36%) of the bookkeepers surveyed reported that they were actively looking to increase the number of clients they deal with over the next three years. 10% were looking to reduce their client numbers, and over half (53%) said that they were satisfied with the existing number of clients and that they plan to stay at that level. Respondents were also asked about the services they currently offer for clients. Almost all (99%) of the sample indicated that they (or their bookkeeping business) currently provides at least one of the BAS Services (as defined by the law), whilst all of the respondents also indicated that they or their business provide non-bas services. Respondents were asked about the proportion of their client base for which they perform certain tasks: Almost two thirds (65%) indicated that they prepare and lodge the BAS themselves for at least some of their clients, and relatively few (15%) reported that they check and lodge the BAS their client has prepared. 1.5 BAS Lodgment page 5

6 Almost nine in ten (88%) of the bookkeepers surveyed indicated that they had lodged a BAS at some time. Twelve percent indicated that they had never done so. When those who had lodged a BAS on behalf of their client(s) were asked about the proportion that they lodged electronically compared to by paper, there was a slight skew towards lodging by paper. On average these surveyed bookkeepers reported lodging just under half electronically (43%) and just over half by paper (57%). The main reasons given by those who have lodged a paper BAS for doing so was that either their client had asked them to (59%) or that they found it easier to lodge in paper format (42%). In summary, apart from client requirements respondents were more likely to say that lodging in paper format was easier for them as opposed to the electronic method being too difficult or them being uncomfortable with it. This implies that much of this rationale is based on habit rather than negative perceptions of electronic lodgment per se. Amongst those who do lodge the BAS electronically for at least some of their clients, there was similar reported usage of the three channels mentioned: 52% of those who had lodged electronically indicated that they had done so via the client s access to the Business Portal, 46% via the BSP Portal and 45% via the ECI. 1.6 Interaction with the ATO Less than four in ten (38%) of the sample of bookkeepers reported having at least annual contact that was initiated by the ATO. The reported frequency of contact with the ATO that was initiated by the bookkeeper was greater: seven in ten (70%) reported initiating contact with the ATO at least annually, and half (50%) reported doing so at least quarterly. In the 2010 survey, the main method of interaction with the ATO was still by telephone, with 71% of the total sample indicating that this was the case (62% in 2006). However, the results also show a general increase in the different ways of interacting with the ATO (i.e. not just the main method): In total, 91% of surveyed bookkeepers indicated that they had interacted with the ATO by phone (significantly up from 84% in 2006), 29% had used the Business Portal (26% in 2006), 27% by letter (significantly up from 21% in 2006), 20% by (significantly up from 12% in 2006). Seventeen percent reported that they had interacted with the ATO via the Electronic Commerce Interface (ECI) which was comparable to the 16% who reported doing so in When asked to take into account all contacts with the ATO over the past year, and rate their overall satisfaction with the service they received, 60% were satisfied whilst only 10% were dissatisfied (26% were neutral). This was significantly lower page 6

7 than the result reported in the 2006 study (72% satisfied) and comparable with the 2005 result (64% satisfied). Respondents were then invited to indicate their agreement with a number of statements regarding the ease of interacting and transacting with the ATO. The results for these statements indicate a number of interesting and positive findings, including: Over half (55%) agreed that they think the ATO is doing a good job, and only 8% disagreed. A similar proportion (56%) agreed that they think it is easier now than in the past to deal with the tax system (11% disagreed) indicating that there is a perception that things are improving. Supporting this observation, 38% agreed that the ATO s service has improved a lot over the last 12 months (only 9% disagreed) Almost two thirds (63%) agreed that the information they receive from the ATO helps them deal with the tax system. There were also some areas that the bookkeepers in the study indicated could be improved: 65% of bookkeepers surveyed agreed that they find it difficult to get through when they phone the ATO. Naturally, this is of interest as about seven in ten indicated that this is their main method of interacting with the ATO. However over a quarter (27%) also indicated that they think they get inconsistent advice when they phone the ATO, whilst a similar proportion (30%) disagreed with this statement. Conducting an analysis of the strength of relationship between these statements and overall satisfaction with service indicates that statistically the statements are similarly important to each other. In other words, no single statement stands out as being substantially more important than the others. As such efforts should continue to be made to improve all of these aspects of dealing with the ATO (which would manifest itself as an increase in ratings over time). 1.7 Product awareness and usage Product awareness amongst surveyed bookkeepers was generally high, although levels of usage did vary as shown in the table below: Chart 1: Awareness and usage of products page 7

8 Column % Products / services aware of (n=550) Products / services used (n=550) Bookkeepers Essentials site on Activity Statement Update BSP view of the Tax Agent Portal The BAS service provider subscription electronic newsletter Relationship Manager Visits / BSP Advisory Program None of these 5 15 Base: Total sample, as noted Encouragingly only 5% of the bookkeepers in the study reported not being aware of any of the products mentioned, and only 15% had not used any of them. Satisfaction with products (amongst those who reported using them) was generally high: over six in ten reported that they were satisfied and less than one in ten indicated that they were dissatisfied with each product. 1.8 Conclusions In conclusion, awareness of the new requirement for registration is high (around 9 in 10), with intention to register moderate (around 6 in 10). Few people claimed not to know what was required of them, but costs of PI insurance, CPD and training and registration itself presented potential stumbling blocks. In general, job satisfaction was high amongst the surveyed bookkeepers, with 89% very / fairly satisfied and almost two thirds indicating that they intend to remain in the tax profession and expect to grow and prosper over the next 2-3 years. Whilst almost all (99%) of the bookkeepers surveyed reported providing some BAS services to their clients, around two thirds indicated that they currently prepare and lodge the BAS for at least some of their clients. When asked to take into account all contacts with the ATO over the past year, and rate their overall satisfaction with the service they received, 60% were satisfied whilst only 10% were dissatisfied (26% were neutral), which was significantly lower than the result reported in the 2006 study (72% satisfied) and comparable with the page 8

9 2005 result (64% satisfied). Some of the areas that respondents indicated could be improved included getting through to the call centre and receiving consistent advice. page 9

10 2 BACKGROUND AND OBJECTIVES 2.1 Background Tax practitioners play a vital role in the administration of the tax and superannuation system in Australia, being involved in the lodgment of approximately 73% of individuals and 95% of business tax returns 1. Given this situation it is important for the ATO to maintain a continuous dialogue with these key stakeholders, and a number of forums and peak bodies exist to achieve this 2. Through this dialogue, the ATO aims to help and influence tax practitioners via the 3C s: Consultation, collaboration, and co-design. A key requirement for the process of maintaining an on-going dialogue is understanding the environment that these professionals work in, the key drivers of their work loads, their interactions with their clients as well as the ATO, and the pressures they face. This information will enable the ATO to better understand their situation, and more appropriately engage with them. Within the external environment, a number of legislative changes came into effect on 1 March 2010 that impact on the profession, and these include: a requirement for anyone who provides BAS services for a fee to register as a BAS agent; a legislated code of professional conduct; safe harbour provisions that offer protection to taxpayers who provide all relevant information to their registered tax agent or BAS agent; and a National Tax Agent Board which will have the power to apply civil penalties for misconduct by registered and unregistered tax agents. The ATO currently engages with intermediaries in a number of ways, including direct communications and interaction channels, as well as numerous products and services that are provided (either in hardcopy or online). It is therefore important for the ATO to evaluate how effective these are in assisting tax practitioners to perform 1 Compliance program fp=001&st=&cy= 2 See for example, page 10

11 their roles, as well as identifying areas for improvement, and gaps. This also requires an understanding of the awareness, usage and satisfaction with these products and services. In support of the above, in 2009/2010 the ATO commissioned a suite of research projects: A qualitative phase with tax agents and bookkeepers who are in the business of providing BAS services for a fee; State of the Industry quantitative research with tax agents and bookkeepers who are in the business of providing BAS services for a fee; Tax agent perceptions survey; and Tax agent services survey. This report represents the results for the State of the Industry research with bookkeepers who are in the business of providing BAS services for a fee. The ATO has conducted a number of studies in this area since 2005 including: State of the industry: Bookkeepers who provide BAS services for a fee, 2005 Business Activity Statement service provider research 2006 The current research is an extension of the previous work, and seeks to build upon this knowledge whilst exploring other emergent themes. At a high level, the proposed research seeks to: Track certain issues identified in previous studies amongst this target audience; Quantify the more recent qualitative research; and Explore and quantify emerging trends. page 11

12 2.2 Research objectives The 2010 State of the Industry BAS Service Providers study explores and quantifies the opinions of Bookkeepers who provide BAS services for a fee, in relation to: Issues impacting on this section of the bookkeeping industry such as: awareness and understanding of the requirements of the new regulatory environment the preparedness for and/or propensity to register as a BAS agent capability issues such as qualifications, CPD and professional association membership The environment exploring: how bookkeeping businesses currently operate the services they provide their clients how interactions with clients and the ATO are conducted, and awareness, usage, perceptions of effectiveness and satisfaction with products, services and channels provided by the ATO 2.3 Overview of fieldwork The 2010 State of the Industry BAS Service Providers study was conducted by mail during March A survey was designed in conjunction with the ATO that consisted of questions included in previous surveys (which were kept as consistent as practically possible) together with new questions included to address emergent themes and issues. Feedback from the Australian Government Statistical Clearing House was also obtained in order to gain approval (Approval Number ). The ATO provided a list of potential respondents from the data warehouse that had a high probability of being BAS service providers. A screener was also included in the questionnaire to ensure that only the intended audience were included in the participating sample. The survey reportedly took on average just over half an hour to complete (mean: 36 mins, median 30 mins), and a copy of the final survey is included as an appendix. page 12

13 In total n=2,000 surveys were sent out and n=573 surveys were received back (a response rate of 29%), of which n=550 were completed and in scope and were therefore included in the analysis. 2.4 Reporting exceptions Statistically significant differences are marked as follows on the charts. A blue circle indicates that the data point in question is significantly higher compared with the rest of the sample, or the preceding wave, at a 95% confidence level. A blue line indicates that the data point in question is significantly lower compared with the rest of the sample, or the preceding wave, at a 95% confidence level. Where the results for subgroups are presented on a chart, the result for the total sample is presented to provide the context. Significant differences for subgroups are derived by testing the result for the subgroup against the rest of the sample (that is the total sample minus the subgroup in question). All statistically significant differences noted in the text of this report are also measured at a 95% confidence level. No answer and Don t know responses have only been included where considered appropriate or for consistency with previous studies. The base is noted in the text below the chart. Some totals may not add to 100% due to rounding. Sample sizes are indicated in brackets on the majority of the charts. An asterisk (*) next to a sample size denotes that the sample size is too small for a conclusive finding to be drawn, and that the result should be interpreted as indicative only. (These results have only been presented on charts where they illustrate a pattern in the data). All results have been tested for significance, via sub group analysis, using the following variables (as appropriate): Age Geographic segment page 13

14 State Hours worked Overall job satisfaction, and Plans for the next 2-3 years Note, while the testing of the above was undertaken throughout, only significant differences have actually been reported. page 14

15 RESEARCH FINDINGS page 15

16 3 THE ENVIRONMENT This section explores the environment within which bookkeepers who provide BAS services for a fee currently operate. 3.1 Sample profile Almost a third (31%) of the total sample were based in New South Wales and the ACT, just over a quarter (28%) in Victoria and Tasmania, and just under a quarter (22%) in Queensland. Chart 2: Current location (state) Q48 In the space provided below, please write in the postcode relating to your office location. WA + SA + NT 19% NSW + ACT 31% VIC + TAS 28% QLD 22% Base: Total sample, n=550 The balance (19%) was located in Western Australia, South Australia or the Northern Territory. page 16

17 The vast majority (90%) of respondents were aged between 35 and 64 years old, with about 4 in 10 respondents (41%) aged years. Four percent were aged 65+. Chart 3: Respondent profile by age Q45 Which age category are you in? No answer 1 Over 65 yrs old yrs old yrs old yrs old yrs old yrs old 0 % Base: Total sample, n=550 page 17

18 Comparing the results from the latest survey with those from the 2006 survey shows a number of significant differences: Chart 4: Respondent profile by age (2010 compared to 2006) Q45 Which age category are you in? Column % 2006 (n=575) 2010 (n=550) yrs old yrs old yrs old yrs old Over 55 yrs old No answer 0 1 Base: Total sample, as noted page 18

19 Almost one in five (19%) respondents was male whilst the majority (81%) were female. Chart 5: Respondent profile by gender Q46 Please record your gender No answer % Female Male Total sample (n=550) yrs old (n=33) yrs old (n=147) yrs old (n=227) Over 55 yrs old (n=140) Base: Total sample, as noted As shown in the previous chart, surveyed bookkeepers aged over 55 years old were significantly more likely to be male. Compared to the results of the previous study conducted in 2006, there were significantly fewer male respondents in this survey (2006: 26% male; 74% female), thus there remains a strong female skew to the sample. There were no significant differences when the 2010 results were compared to the 2005 survey where almost 80% of the sample was female. page 19

20 3.2 Personal working situation Almost nine in ten (87%) of the sample reported that they were a Sole Trader Bookkeeper, based on the definition that they work independently and contract [their] bookkeeping services to businesses. This is slightly higher than when a similar question was asked in 2005 and 73% reported that they were a Sole Trader. Note due to changes in the question from 2005 significance testing was not possible. A further 12% indicated that they were Bookkeeping business managers, and 1% were Bookkeeping business employees in this latest study. Chart 6: Current working situation Q2 Which of the following best describes your working situation as a bookkeeper, either full time or part time? No Answer 1% Bookkeeping business manager Bookkeeping 12% business employee 1% Sole Trader Bookkeeper 87% Base: Total sample, n=550 page 20

21 Respondents were asked about the average number of hours they worked per week over the last year. Almost a quarter (23%) reported working over 40 hours a week on average. 28% reported working between hours, whilst almost half (47%) reported working 30 hours a week or less. Chart 7: Average hours worked per week over the past year Q4 We realise that the number of hours you work may vary from week to week, but on average across the past year how many hours did you work per week? Column % Total sample (n=550) 1-10 hrs hrs hrs hrs hrs hrs hrs 2 No answer 2 Base: Total sample, as noted The average (mean) number of hours reported was 33 hours per week (across the total sample). This was significantly higher than the average recorded in the 2006 survey, of 29.4 hours per week, and in line with the average in 2005 (32.4 hours per week). In 2010, respondents were then asked how they felt about the number of hours they work. Across the total sample, just over 6 in 10 (62%) reported that they felt their hours were about right. One in five (20%) thought their hours were somewhat or very excessive, and One in 6 (17%) said that they would like to work more. page 21

22 These results were in line (no significant differences) with the results from the 2005 study were 61% indicated that their hours worked were about right, 24% indicated that they were somewhat / very excessive, and 14% reported that they would like to work more. As shown in the following chart, bookkeepers who participated in the survey and reported working over 40 hours per week on average were significantly more likely to indicate that they thought their hours were excessive, whilst those working under 30 hours a week were significantly more likely to say that they would like to work more. Chart 8: Average hours per week and respondents perceptions Q5 And how do you feel about the number of hours you work? Do you feel it is.? Other Would like to work more % About right Somewhat excessive Total sample (n=550) Base: Total sample, as noted 1-20 hrs (n=94) hrs (n=166) hrs (n=155) hrs (n=90) 51+ hrs (n=34) 7 29 Very excessive Respondents working between hours were significantly most likely to say that they thought their hours were about right (80% indicating that this is the case for them). page 22

23 On average respondents reported spending 62% of their overall working time at the client s premises and 28% of their time at home. Chart 9: Average proportion of time spent working at different locations Q6 Where do you do your work? Approximately what proportion of your overall working time would you spend at each of the locations specified? 100 At client premises % At home At your business office premises (n=391) 2010 (n=550) Other Average (mean) proportion of overall working time spent at each location Base: Total sample, as noted As shown in the previous chart, comparing these proportions to the results of the same question asked in 2006 indicates that there has been a significant increase in the average proportion of time spent working at the client s premises, and a significant decrease in the proportion of time spent working at home and at their business premises. page 23

24 3.3 Job Satisfaction Almost nine in ten of the bookkeepers surveyed in the latest report indicated that they were generally satisfied with their job. Over half (54%) were generally very satisfied whilst only 2% indicated that they were generally dissatisfied. Chart 10: Overall satisfaction with job as a bookkeeper Q3 Overall, how satisfied or dissatisfied are you with your job as a bookkeeper in March 2010? Column % 2005 (n=923) 2010 (n=550) Generally very satisfied Generally fairly satisfied Generally neutral 17 8 Generally fairly dissatisfied 3 1 Generally very dissatisfied 1 1 Base: Total sample, as noted Significantly more reported being very satisfied, while significantly less were fairly satisfied and neutral, in the latest study compared to the 2005 results, when eight in ten (80%) reported that they were satisfied with their job. However, dissatisfaction in 2005 was at comparable low levels. Comparing this measure with the reported satisfaction with the service received from the ATO shows no discernable pattern. In addition, there were no significant differences in overall satisfaction with their job as a bookkeeper when compared to the main method of contact with the ATO they reported. The qualitative stage of this study identified a number of positives about the job that were reported by bookkeepers: page 24

25 It is a convenient job, you can choose your workload, and balance it with the rest of your life. I love helping people succeed in their business. My clients see their business and stress levels improving when I get settled into looking after their accounts and realise the benefit of having me. Most of my clients are very good at their industry but have no idea about money or managing accounts so my role is really important in terms of keeping the company afloat. Everyday of the week I am in a different office with a different group of people, it makes life interesting. Bookkeepers are very black and white, we want everything to balance and that is why we are good at it, we are determined that it must be right. I enjoy bookkeeping because I love the puzzle, and with bookkeeping there is always an answer, you just have to find it. In addition, bookkeepers reported a number of negatives about the job, including: The only negative of being self employed is you don t really feel like part of a team. You end up spending a lot of the time by yourself. You really have to plan the perfect time for a holiday, BAS months or tax time are never good. I don t like it when a client expects me to be flexible and will change appointments at a moment s notice. Some clients assume that I only look after their books and that I can come running to them whenever they need me. page 25

26 As could be expected, satisfaction was significantly lowest amongst those intending to leave the profession over the next 2-3 years: Chart 11: Overall satisfaction by personal work plans over the next 2-3 years Q3 Overall, how satisfied or dissatisfied are you with your job as a bookkeeper in March 2010? Nett dissatisfied % Generally neutral 20 Nett satisfied 0 Total sample (n=550) You will remain in the tax profession and expect to grow and prosper (n=350) You will remain in the tax profession and hope for the best (n=87) You will probably retire in the next 2-3 years (n=59) You will most likely leave the tax profession in the next 2-3 years, and work in another field or capacity (n=39) Base: Total sample, as noted There were no significant differences in satisfaction (or dissatisfaction) by age. However, those who do not intend to register as a BAS agent were significantly less likely to say that they were satisfied with their role as a bookkeeper, with only 80% of this group reporting that they were satisfied compared to 89% of the total sample. This group were also significantly more likely to be dissatisfied with their job, with 8% indicating that they were, compared to 2% of the sample overall. There were no significant differences in reported job satisfaction when compared to the different levels of qualification that the surveyed bookkeepers had achieved or were studying. page 26

27 Almost two thirds of the bookkeepers surveyed indicated that they intend to remain in the tax profession and expect to grow and prosper over the next 2-3 years. Chart 12: Personal work plans over the next 2-3 years Q47 Which of these statements best describes your personal work plans for the next 2-3 years? You will remain in the tax profession and expect to grow and prosper 64 You will remain in the tax profession and hope for the best 16 You will probably retire in the next 2-3 years 11 You will most likely leave the tax profession in the next 2-3 years, and work in another field or capacity 7 Other / No answer 3 Base: Total sample, n=550 % Eleven percent indicated that they intend to retire over the next 2-3 years, whilst 7% reported that they were most likely to leave the tax profession in this period to work in another field or capacity. page 27

28 As shown in the following chart, respondents aged were significantly more likely to indicate they were planning to leave the profession to work in another field or capacity, whilst those aged 55+ years were significantly more likely to report their intentions to retire over the next 2-3 years. Chart 13: Personal work plans by respondent age Q47 Which of these statements best describes your personal work plans for the next 2-3 years? Other / No answer % You will most likely leave and work in another field or capacity You will probably retire in the next 2-3 years Total sample (n=550) yrs old (n=33) yrs old (n=147) yrs old (n=227) Over 55 yrs old (n=140) Base: Total sample, as noted 46 You will remain in the tax profession and hope for the best You will remain in the tax profession and expect to grow and prosper page 28

29 Respondents who indicated that they work over 50 hours a week were also significantly more likely to report being less satisfied. Although interestingly they were no more likely to say that they were dissatisfied but significantly more inclined to report being generally neutral. Chart 14: Overall satisfaction by hours worked Q3 Overall, how satisfied or dissatisfied are you with your job as a bookkeeper in March 2010? Nett dissatisfied % 60 Generally neutral Nett satisfied 0 Total sample (n=550) 1-20 hrs (n=94) hrs (n=166) hrs (n=155) hrs (n=90) 51+ hrs (n=34) Base: Total sample, as noted There were no other significant differences in stated job satisfaction compared to the reported average number of hours worked over the past year. Reviewing the qualitative findings, it is apparent that for some the flexibility offered by the job is a source of satisfaction: I can t think of many other careers that would offer me the flexibility that I get at the moment. In 2-3 years time I see myself with another child, so I would be planning to decrease my workload until the kids are a bit older. In 2-3 years my children will be at school so I am looking forward to taking on a few more clients. page 29

30 3.4 Working situation Respondents were asked about the proportion of their client base for whom they perform certain tasks. As shown in the following chart, almost two thirds (65%) indicated that they prepare and lodge the BAS themselves for at least some of their clients, whereas relatively few (15%) reported that they check and lodge the BAS their client has prepared. Chart 15: Tasks performed for clients Q18 For what proportion of your client base do you perform the following tasks? 0% 1-25% 26-50% 51-75% % Prepare and lodge the BAS myself for the client Prepare the BAS for the client to lodge Enter data so that client or their tax agent can prepare and lodge the BAS Prepare the BAS for the clients tax agent to lodge Check and lodge the BAS that client has prepared Base: Total sample, n= % page 30

31 Respondents were also asked about which areas of tax law they have dealt with in relation to the preparation of activity statements for their clients. As shown in the following chart, PAYG and GST were the most commonly mentioned. Chart 16: Areas of tax law dealt with Q7 Which areas of tax law have you dealt with in relation to the preparation of activity statements for your clients? PAYG withholding GST PAYG installments 87 Fuel tax 46 Fringe benefit tax 18 Luxury car tax 10 Wine equalisation tax 7 Others 2 I do not prepare activity statements for my clients Base: Total sample, n= % Almost half (46%) of the bookkeepers surveyed reported that they had also dealt with Fuel Tax Credits. Twelve percent of respondents indicated that they do not prepare activity statements for their clients. Some respondents also appear to have (potentially mistakenly) ticked more than one box for this question, with an apparent contradiction between the 92% who indicate they deal with PAYG withholding and GST and the 12% who indicated that they do not prepare activity statements for their clients. The other areas of tax law mentioned by respondents included Payroll tax (several mentions) and Energy Fuel credits. page 31

32 Respondents were also asked about the services they currently offer for clients: Chart 17: Services currently offered Q8 Which of the following services do you or the bookkeeping business for which you work offer to your clients? Column % Total sample (n=550) Preparing bank reconciliations 100 Entering data 99 * Reconciling data entry to ascertain the figures to be included on a clients activity statement * Ascertaining the withholding obligations for the employees of your clients. This includes the preparation of payment summaries * Coding tax invoices and transferring data onto a computer program for clients 90 * Filling in the activity statement on behalf of an entity or instructing the entity which figures to include * Installing computer accounting software and determining default GST codes tailored to the client Ascertaining or advising about the superannuation guarantee obligations for a client General training in relation to the use of computerised accounting software 71 Coding tax invoices and transferring data on to a computer program for clients under the instruction and supervision of a registered tax agent Installing computer accounting software without determining default GST codes tailored to the client Administration/office duties 2 * Payroll tax/processing payrolls Base: Total sample, n=550 * Indicates a BAS service As shown in the preceding table, most of the services were offered by the majority of bookkeepers surveyed. The services that were less widely offered included Coding tax invoices and transferring data on to a computer program for clients under the instruction and supervision of a registered tax agent (offered by 51%), Installing computer accounting software without determining default GST codes tailored to the client (offered by 13%), Administration/office duties (2%) and Payroll tax/processing payrolls (1%) which was specified as an other service. Almost all (99%) of the sample indicated that they (or their bookkeeping business) currently provides at least one of the BAS Services (as defined by the law), whilst all page 32

33 of the respondents also indicated that they or their business provide non-bas services. Echoing the sample profile results in section 3.2 which showed that the sample is dominated by Sole Traders (87% of the total sample), almost three quarters of the sample reported that their business only employed one person. However, there was some movement expected over the next 12 months in terms of employee numbers overall: Chart 18: Current and expected employee numbers Q9 Including yourself, how many types of staff are employed in the bookkeeping business that you own / operate or are employed by? Q10 In 12 months time, including yourself, how many of the following types of staff do you expect to be employed in the bookkeeping business that you own / operate or work in? Column % Total number of staff currently employed Total number of staff expect to employ In 12 months time None or more NET Base: Total sample, n=550 As shown by the previous table, some respondents were expecting their company size to grow, whilst others (a small proportion) were expecting it to decline. Comparing the total number of staff expected to be employed in 12 months time with the total number of staff currently employed, 16% expected their company to grow in size whilst 4% expected it to decline. Eighty percent expected their company to employ the same number of staff in 12 months time as it does now. page 33

34 The following series of tables show the proportion of numbers and types of staff employed by bookkeeping businesses currently. Chart 19: Number of bookkeepers currently employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 Chart 20: Number of accountants currently employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 page 34

35 Chart 21: Number of clerical / administrative staff currently employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 Chart 22: Number of other staff currently employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 The following series of tables show the proportion of numbers and types of staff expected to be employed by bookkeeping businesses over the coming year. page 35

36 Chart 23: Number of bookkeepers expected to be employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 Chart 24: Number of accountants expected to be employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 Chart 25: Number of clerical / administrative staff expected to be employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 page 36

37 Chart 26: Number of other staff expected to be employed % of total sample Full time Part time Casual None or more NET Base: Total sample, n=550 page 37

38 3.5 Clients The average (mean) number of clients reported by bookkeepers who provide BAS services for a fee was 23 whilst the median was 10 (i.e. half the sample had more than 10 and half had less than 10). As shown in the following table and as could be expected, respondents working for bookkeeping businesses with a greater number of staff had significantly more clients. Chart 27: Number of clients compared to number of staff Q11 What is your total number of clients? Column % Total sample (n=550) 1 staff (n=409) 2 staff (n=77) 3+ staff (n=64) No Answer Average (mean) Median Base: Total sample, as noted The median number of clients in 2010 (10 clients) was the same as reported in the 2005 and 2006 surveys (both also 10). page 38

39 Around half of those surveyed (49%) reported that the total number of clients had remained the same over the past 12 months. A third (33%) indicated that their total number of clients had increased (6% increased substantially, 26% increased a little), and almost one in five (18%) reported that they had decreased (13% decreased a little, 4% decreased substantially). Chart 28: Movement in the number of clients over the past 12 months Q12 Over the past 12 months, has the total number of clients...? Column % Total sample (n=550) 1-5 clients (n=120) 6-10 clients (n=152) clients (n=127) 21+ clients (n=141) Nett increased Remained about the same Nett decreased No answer Base: Total sample, as noted As the preceding chart shows, the bookkeeping businesses with larger numbers of clients were more likely to report an increase in the total number of clients indicating that these are the companies that are more likely to be in a growth phase. These results are broadly comparable (no significant differences) with the 2005 results, where 48% of respondents reported that their total number of clients had remained the same over the past 12 months, 37% reported that they had increased, and 14% said that they had decreased. page 39

40 Just over a third (36%) of the bookkeepers surveyed reported that they were actively looking to increase the number of clients they deal with over the next three years. 10% were looking to reduce their client numbers, and over half (53%) said that they were satisfied with the existing number of clients and that they plan to stay at that level. Chart 29: Intentions over the next three years (2010 and 2006) Q13 Over the next three years, which of these statements would best apply to you or your bookkeeping business? Reduce the number of clients, either by attrition or actively shedding clients 60 % Satisfied with the existing number of clients and plan to stay at that level Actively seek to increase your number of clients 0 Base: Total sample, as noted 2006 (n=391) 2010 (n=550) As shown in the preceding chart, there has been a significant increase in the proportion of BAS service providers surveyed actively looking to increase their client base, and a significant decrease in the proportion looking to remain stable over the next three years. There were no significant differences in this measure when compared to the average number of hours the surveyed bookkeepers reported working, however those that were looking to grow their client base were also significantly looking to increase staff numbers, as shown in the following table: page 40

41 Chart 30: Intentions over the next three years (staff numbers and client base) Q13 Over the next three years, which of these statements would best apply to you or your bookkeeping business? Column % Total sample (n=550) Nett increase number of staff (n=179) Staff numbers to remain about the same (n=270) Nett decrease number of staff (n=98) Actively seek to increase your number of clients Satisfied with the existing number of clients and plan to stay at that level Reduce the number of clients, either by attrition or actively shedding clients Base: Total sample, n=550 NET page 41

42 On average, the bookkeepers surveyed reported that almost two thirds (65%) of their clients were in the micro-business category (turnover between $75,000 and $2m per annum). A further 18% were reportedly in the very micro category, with an annual turnover of less than $75,000. Chart 31: Average client profile by turnover Q14 Please indicate what percentage of each of the following types of clients you currently work for? Very Micro businesses (Turnover of less than $75,000) 18 Micro businesses (Turnover of $75,000 to $2 million) 65 SME businesses (Turnover of $2 million to $20 million) 15 Larger SME businesses (Turnover of $20 million to $250 million) 1 Other 0 Average (mean) proportion of clients reported in each category Base: Total sample, n=550 % page 42

43 Respondents also reported a wide variety of clients by industry type, although retail trade and construction were the most frequently mentioned, with almost two thirds of respondents reporting that they worked with clients in each of these two industry sectors: Chart 32: Clients by Industry sector Q15 Which of the following industries or types of business do your current clients operate in? Retail trade Construction Accommodation & food services Manufacturing Professional/scientific & technical services Health care & social assistance Wholesale trade Rental/hiring & real estate services Financial and Insurance services Transport, postal and warehousing Information media and telecommunications Agriculture/forestry/fishing Administrative & support services Education & training Arts & recreation services Electricity/gas/water/waste services Mining Personal & other services Public administration & safety % Base: Total sample, n=550 As well as the broad range of clients reported by bookkeepers (overall), bookkeepers reported a range of styles of working with clients in the qualitative stage of this project: Some of my clients are so reliant on me to the point of having full control of their online banking and being the primary contact with the ATO for PAYG payments etc. Now that my client is confident enough to do his own books I only have to come in if there is something different like a major asset purchase or end of financial year. page 43

44 The surveyed bookkeepers were also asked to indicate whether they felt that the presented sources of new business were a major or minor source of business for them, or whether they were not a source of new business at all. Chart 33: Sources of business Q16 We are interested in the sources of new business for you. Major source Minor source Not a source No Answer Word of mouth Direct referral from tax agents Clients transferring from tax agents Local/community newspaper Yellow pages advertisement Base: Total sample, n= % page 44

45 As the previous chart shows, word of mouth was considered by most to be a major source of business (by 88%), and compared to the others was potentially the most important source of new business for surveyed bookkeepers. This compares (significantly) with the results from the 2005 survey when 83% rated word of mouth as a major source of business. Direct referrals from tax agents were also considered to be an important source of business, with 40% rating this as a major source (significantly more than the 32% in 2005) and 38% rating it as a minor source (35% in 2005 no significant difference). The other sources mentioned were considered relatively less important, as they were in the 2005 results as well. page 45

46 When asked about the reasons for bookkeepers and their businesses shedding clients or refusing to accept new ones, the main reasons given included late payment of bills, and attempts to defraud the system / changing information to reduce tax liability, or not providing all of the information required. Chart 34: Selection criteria for shedding clients or refusing to accept new clients Q17 On what basis does your business shed clients or refuse to accept a new client? What are the selection criteria? Client is tardy in paying my bill for services rendered Client attempts to change information to reduce their tax liability Clients request was an attempt to defraud the tax system Client does not provide all of the information that is required Client is reluctant to follow advice / suggestions Client does not provide information in a timely manner Significant unbillable time spent dealing with client enquiries Client is a poor record keeper Clients actions would attract the attention of the Tax Office Client is tardy in paying their tax Client has a poor lodgment record Significant unbillable time spent answering Tax Office enquiries in relation to my client Unacceptable behaviour/rude/always late Too much work/too busy Client closed business/sold/moved Too far to travel % Base: Total sample, n=550 Being too busy / having too much work to do was generally not one of the selection criteria given for shedding existing clients or refusing to accept new ones. A version of this question was also asked in the 2005 survey, although the significant changes to the question make the responses less directly comparable (as well as including fewer options, the 2005 question was only asked of those who indicated that they do have a client selection policy 31% of the bookkeepers surveyed). page 46

47 3.6 BAS Lodgment Almost nine in ten (88%) of the bookkeepers surveyed indicated that they had lodged a BAS at some time by completing Section 4 of the questionnaire. Twelve percent skipped the section indicating that they had never done so. Interestingly, 12% said they do not prepare activity statements for their clients (see the results for Q7 earlier). There were no significant differences by age or gender between those that had lodged a BAS and those that had not. When those who had lodged a BAS on behalf of their client(s) were asked about the proportion that they lodged electronically compared to by paper, there was a slight skew towards lodging by paper. On average these surveyed bookkeepers reported lodging just under half electronically (43%) and just over half by paper (57%). Chart 35: Means of lodging clients BAS Q19 We would like to know whether you lodge your clients BAS electronically or by paper. Thinking about the last time you lodged BAS for your clients, what percentage of your client base did you lodge electronically, or by paper? 0% 1-25% 26-50% 51-75% By paper Electronically % Base: Those who have ever lodged a BAS, n=490 page 47

48 As shown in the previous chart, almost half the bookkeepers surveyed, who had lodged a BAS, indicated that they lodge all or almost all (76-100%) of their clients Business Activity Statements in paper format, whilst about a third indicated that they lodge all or almost all (76-100%) of their clients Business Activity Statements electronically. A third (33%) reported lodging all (i.e. 100%) of their clients BAS s by paper, whilst 17% reported lodging all their clients BAS s electronically. The main reasons given by those who have lodged a paper BAS for doing so was that either their client had asked them to or that they found it easier to lodge in paper format: Chart 36: Reasons for lodging in paper format Q20 For what reason(s) do you lodge your clients BAS by paper? My client requested me to lodge a paper BAS 59 I find It easier to lodge a paper BAS 42 I dont have time to set up technology for electronic lodgment Electronic lodgment methods have too many technical difficulties I am not comfortable with using electronic methods to lodge BAS Not allowed / cant access Electronic lodgment methods have too many security risks Need client signature on hard copy It costs too much to set up technology for electronic lodgment % Base: Those who have lodged a paper BAS, n=397 To summarise: apart from client requirements, respondents were more likely to say that lodging in paper format was easier for them as opposed to the electronic method being too difficult or them being uncomfortable with it. This implies that much of this rationale is based on habit rather than negative perceptions of electronic lodgment per se. page 48

49 Amongst those who do lodge the BAS electronically for at least some of their clients, there was similar reported usage of the three channels mentioned: Chart 37: Electronic channels used to lodge clients BAS Q21 Which of the following electronic channels do you use to lodge your clients BAS? Your clients access to the Business Portal 52 BSP Portal (BAS service provider view of the Tax Agent Portal) 46 ECI (Electronic Commerce Interface) 45 % Base: Those who have lodged electronically, n=318 About half of those who had lodged electronically indicated that they had done so via the client s access to the Business Portal, just under half had lodged via the BSP Portal and a similar proportion had done so via the ECI. The fact that the total of these percentages is greater than 100% shows that some of the surveyed bookkeepers are using more than one electronic channel for BAS lodgment. page 49

50 3.7 Contact with other professionals Thirteen percent of the total sample of surveyed bookkeepers reported that they had contact with other bookkeepers (not including immediate work colleagues) on at least a weekly basis. A further nineteen percent had contact on a monthly basis thus almost a third (32%) had at least monthly contact. Chart 38: Frequency of contact with other bookkeepers Q22 How often do you have contact with other bookkeepers working in the industry? 100 Less often/never Annually Quarterly 60 % 10 Monthly Weekly Daily 0 Base: Total sample, as noted 12 1 Total sample (n=550) However, over a third (35%) of the bookkeepers surveyed reported that they had in effect no contact with other bookkeepers (or at least less than annual contact). There were no consistent significant differences by age or gender for the frequency of contact with other bookkeepers. Comparing these results to those from the 2005 survey indicates that there may have been a slight increase in the frequency of contact. In 2005, 45% of sample of page 50

51 bookkeepers reported that they had less than annual contact (significantly more compared to 35% in 2010). page 51

52 About half (52%) of the contacts were generally in the form of informal one-to-one discussions, with about a third (32%) through attending seminars / webinars. Local group discussions did not feature as a general way of making contact with other bookkeepers (only 13% reported that this was the way they generally had contact with others in the industry). Chart 39: General way of making contact with others in the industry Q23 How is this contact generally made? Other 3% Through attending seminars/ webinars 32% Informal one to one discussion 52% Local discussion group 13% Base: Those in contact with other bookkeepers, n=357 page 52

53 As could be expected, those making more frequent contact (e.g. weekly) were more likely to say that it was though informal one-to-one discussions whilst those making more infrequent contact (e.g. annually) were significantly more likely to say that it was through attending seminars / webinars. Bookkeepers in the survey reported a greater frequency of contact with registered tax agents than with other bookkeepers: Two thirds (67%) reported having at least monthly contact with a tax agent (compared to 32% having at least monthly contact with another bookkeeper). Chart 40: Frequency of contact with registered tax agents Q24 How often do you have contact with a registered tax agent? Less often / Never / No Answer Annually Quarterly Monthly % Weekly Daily Base: Total sample, as noted 5 Total sample (n=550) This was significantly lower than the frequency of contact reported in the 2005 study, when 74% of the bookkeepers surveyed reported having at least monthly contact with a tax agent. page 53

54 In the 2010 study 32% reported that they had at least weekly contact with a tax agent, significantly lower compared to 44% in the 2005 study. Respondents who indicated that they offer the service of coding tax invoices and transferring data on to a computer program for clients under the instruction and supervision of a registered tax agent were significantly more likely to have daily / weekly contact with a registered tax agent (42% of this group indicated that they did compared with only 22% of those who did not offer this service). Six in ten of those who said that they have contact with tax agent(s) reported that they are generally in contact with between two and five. Chart 41: Number of registered tax agents with which bookkeepers are in contact Q25 How many registered tax agents are you in contact with in relation to services you provide to your clients? % No Answer Those in contact with Tax Agents (n=537) Base: Those in contact with Tax Agents, as noted page 54

55 As could be expected, the greater the number of clients a bookkeeper or bookkeeping business deals with the significantly greater the number of tax agents they are in contact with. Furthermore, the more tax agents the surveyed bookkeepers were in contact with, the significantly more likely they were to report more frequent contact with tax agents: For example, 42% of those in contact with 6 or more tax agents reported at least weekly contact with tax agents, compared to only 28% of those in contact with 1-5 tax agents. The qualitative stage of this study identified a number of themes reported by bookkeepers in relation to interactions with other tax professionals, including: I find as bookkeepers we are the liaison between the accountants and the clients helping with the flow of information on the client s side and discussing the technical issues in layman s terms. Tax agents realise that their clients need a good bookkeeper that can pass on the correct information. I feel like accountants don t give us enough credit for our skills and abilities. They undermine you to your clients, which is not fair. page 55

56 3.8 Interaction with the ATO Less than four in ten (38%) of the sample of bookkeepers reported having at least annual contact that was initiated by the ATO. Nineteen percent reported such contact on an annual basis, and the same proportion (19%) on a more frequent basis. Chart 42: Frequency of contact with the ATO Q26 How often do you have contact with the Tax Office that is a) initiated by the Tax Office and b) initiated by you? No Answer Less often/never Annually Quarterly 60 % Monthly Weekly Daily Initiated by the Tax Office (n=550) Initiated by you (n=550) Base: Total sample, as noted The reported frequency of contact with the ATO that was initiated by the bookkeeper was greater: seven in ten (70%) reported initiating contact with the ATO at least annually, and half (50%) reported doing so at least quarterly. ATO-initiated contact was broadly comparable, and bookkeeper-initiated contact appears to have declined slightly, when the results of the latest study are compared to the 2005 study when this question was last asked (in 2006 a single question was page 56

57 asked which did not differentiate between ATO-initiated and bookkeeper initiated contact thus these results are not comparable): In 2005, 7% reported that the ATO had initiated contact with them at least monthly (also 7% in 2010). 21% said the ATO had initiated quarterly contact with them (19% in 2010). In 2005, 22% reported that they had initiated contact with the ATO at least monthly which was significantly greater than the 16% who said they had in However, there was no significant difference between those reporting that they initiated at least quarterly contact with the ATO (55% in 2005 and 50% in 2010). The theme of relatively infrequent contact with the ATO was also noted in the qualitative study, and exemplified in this quote from one of the bookkeepers interviewed: I don t have a lot of contact with the Tax Office. I think the online administration is excellent, the portals have alleviated the need for long lengthy phone calls. Although on the latter point, some clearly had some issues locating the relevant information online: I would like to use the website more often but I find it frustrating to navigate. On a couple of occasions I have had to phone the ATO to find out where on the website I can find the information. If I want to find information I Google it. Then from there I can find the actual ATO page. page 57

58 The main method of interaction with the ATO was by telephone, with 71% of the total sample indicating that this was the case. Seven percent indicated that their main method of interaction with the ATO was via the Business Portal and seven percent indicated it was through the BSP view of the Tax Agent Portal. Chart 43: Main method of interaction with the ATO Q27 Please indicate the main method you use to interact with the Tax Office, and also any other methods that you use? Telephone 71 Business Portal BSP view of the Tax Agent Portal 7 7 Electronic Commerce Interface (ECI) 5 Letter/mail Fax Other No Answer 6 Base: Total sample, n=550 % This was significantly higher than in the previous report in 2006 when 62% reported that telephone was the main method of interaction with the ATO. Mentions of the Business Portal were also significantly lower (mentioned by 7% as the main method of interaction in the 2010 study compared to 12% in the 2006 study). In terms of all the ways of interacting with the ATO (not just the main method), there appears to have been an increase in the methods used by bookkeepers: In page 58

59 total, 91% of surveyed bookkeepers indicated that they had interacted with the ATO by phone (significantly up from 84% in 2006), 29% had used the Business Portal (26% in 2006), 27% by letter (significantly up from 21% in 2006), 20% by (significantly up from 12% in 2006). 17% reported that they had interacted with the ATO via the Electronic Commerce Interface (ECI) which was comparable to the 16% who reported doing so in Chart 44: Methods of interaction with the ATO (total mentions) Q27 Please indicate the main method you use to interact with the Tax Office, and also any other methods that you use? Telephone 91 Business Portal Letter/mail Electronic Commerce Interface (ECI) BSP view of the Tax Agent Portal Fax 10 Other No answer 1 2 Base: Total sample, n=550 % page 59

60 When asked to take into account all contacts with the ATO over the past year, and rate their overall satisfaction with the service they received, 60% were satisfied whilst only 10% were dissatisfied (26% were neutral). Chart 45: Overall satisfaction with ATO service Q28 Taking into account all your contacts with the Tax Office over the past year or so, how satisfied or dissatisfied are you with the overall service you have received from the Tax Office? Column % 2005 (n=753) 2006 (n=391) 2010 (n=550) Very satisfied (5) Neutral (3) Very dissatisfied (1) NA / DK Base: Total sample, as noted Significance testing relates to comparison of 2006 / 2010 results This was significantly lower than the result reported in the 2006 study, when 72% reported that they were satisfied. However, the change appears to be in the proportion who claimed to be neutral (13% in 2006) as the percentage who were dissatisfied (11% in 2006) was broadly comparable when the two dissatisfaction codes are combined. The 2010 result is comparable with the 2005 result when 64% of the bookkeepers surveyed indicated that they were satisfied overall with the service from the ATO over the past year or so (although significantly more were very satisfied in 2010: 26% compared to 17% in 2005). There were no notable differences in satisfaction compared to the frequency of contact with the ATO (either initiated by the ATO or by the respondent). page 60

61 The broadly positive sentiment recorded in the quantitative study was also noted in the qualitative phase : There is now a genuine feeling that they want to assist. Nowadays I mainly find the employees at the Tax Office to be helpful and either provide me with the information I need or find someone else who can. Respondents were then invited to indicate their agreement with a number of statements regarding the ease of interacting and transacting with the ATO. The results of these statements are shown in the table below: Chart 46: Agreement with Interaction / transaction related statements Q29 Please indicate your agreement with the following statements regarding the ease of interacting and transacting with the Tax Office. Row % Strongly agree 4 Neutral 2 Strongly disagree DK/ NA You find it difficult to get through when you phone the Tax Office The information you receive from the Tax Office helps you deal with the tax system It is easier now than in the past to deal with the tax system Overall I think the Tax Office is doing a good job The Tax Offices systems and business processes are being improved to make it easy for BSPs / bookkeepers to deal with the tax system The Tax Offices service has improved a lot over the last 12 months The effort involved in dealing with the Tax office is less now than in the past The information and assistance you receive from the Tax Office is tailored to meet your needs You get inconsistent advice when you phone the Tax Office The effort involved in maintaining your clients records is less now than in the past The BSP view of the Tax Agent Portal has reduced the need for phoning the Tax Office Base: Total sample, n=550 page 61

62 The results for these statements indicate a number of interesting and positive findings, including: Over half (55%) agreed that they think the ATO is doing a good job, and only 8% disagreed. A similar proportion (56%) agreed that they think it is easier now than in the past to deal with the tax system (11% disagreed) indicating that there is a perception that things are improving. Supporting this observation, 38% agreed that the ATO s service has improved a lot over the last 12 months (only 9% disagreed) Almost two thirds (63%) agreed that the information they receive from the ATO helps them deal with the tax system. There were also some areas that the bookkeepers in the study indicated could be improved: 65% of bookkeepers surveyed agreed that they find it difficult to get through when they phone the ATO. Naturally, this is of interest as about seven in ten indicated that this is their main method of interacting with the ATO. However over a quarter (27%) also indicated that they think they get inconsistent advice when they phone the ATO, whilst a similar proportion (30%) disagreed with this statement. page 62

63 Reviewing overall satisfaction with ATO service and these statements shows that satisfied respondents were more likely to agree with many of the statements, whilst dissatisfied respondents were less likely to agree with many of them. Chart 47: Agreement with transaction related statements compared to overall satisfaction with service Q29 Please indicate your agreement with the following statements regarding the ease of interacting and transacting with the Tax Office. Row % Total sample (n=550) Nett satisfied (4-5) (n=330) Neutral (n=143) Nett dissatisfie d (1-2) (n=57) You find it difficult to get through when you phone the Tax Office The information you receive from the Tax Office helps you deal with the tax system It is easier now than in the past to deal with the tax system Overall I think the Tax Office is doing a good job The Tax Offices systems and business processes are being improved to make it easy for BSPs / bookkeepers to deal with the tax system The Tax Offices service has improved a lot over the last 12 months The effort involved in dealing with the Tax office is less now than in the past The information and assistance you receive from the Tax Office is tailored to meet your needs You get inconsistent advice when you phone the Tax Office The effort involved in maintaining your clients records is less now than in the past The BSP view of the Tax Agent Portal has reduced the need for phoning the Tax Office Base: Total sample, n=550 Conducting an analysis of the strength of relationship between these statements and overall satisfaction with service indicates that statistically the statements are similarly important to each other. In other words, no single statement stands out as being substantially more important than the others. page 63

64 As such efforts should continue to be made to improve all of these aspects of dealing with the ATO (which would manifest itself as an increase in ratings over time). Furthermore, satisfied respondents were also more likely to have a more positive view of the role of the ATO in compliance, with these respondents more likely to agree with all of the statements mentioned in question 32, as shown in the following table. This also indicates that other factors (outside of the actual interaction) are likely to influence this satisfaction measure. Chart 48: Agreement with tax compliance statements compared with overall satisfaction with ATO service Q32 Thinking about tax compliance and the range of issues that the Tax Office has to manage, to what extent do you agree or disagree with the following statements: The Tax Office. Column % (% of each column that agree with the statement) Total sample (n=550) Nett satisfied (4-5) (n=330) Neutral (n=143) Nett dissatisfied (1-2) (n=57) supports taxpayers who want to do the right thing is effective in ensuring that people and businesses lodge their business activity statements is fair and professional in how it administers the tax system is effective in making sure that people and businesses pay the right amount of tax applies the tax law with certainty and consistency is keeping the community informed about their efforts in dealing with tax crimes like evasion and fraud is effective in dealing with people and businesses that have deliberately avoided paying tax is effective in dealing with people and businesses who have sought to obtain refunds to which they were not entitled is effective in dealing with people who do not declare all their cash earnings Base: Total sample, n=550 page 64

65 3.9 Product awareness and usage Bookkeepers were asked to indicate their awareness and usage of a number of specific initiatives. The table below shows the results of these questions. Only five percent of the bookkeepers in the study reported not being aware of any of the products mentioned, and only 15% had not used any of them. Chart 49: Awareness and usage of products Q30 We are interested in your awareness, usage of and satisfaction with some specific Tax Office products and services. Column % Products / services aware of (n=550) Products / services used (n=550) Bookkeepers Essentials site on Activity Statement Update BSP view of the Tax Agent Portal The BAS service provider subscription electronic newsletter Relationship Manager Visits / BSP Advisory Program None of these 5 15 Base: Total sample, as noted The Bookkeepers Essentials site on the ATO website achieved the greatest awareness amongst surveyed bookkeepers with around three quarters (76%) indicating that they had heard of it before. This was significantly higher than the level of awareness recorded in the 2006 study when 43% indicated they were aware of the Bookkeeping Essentials page. Usage of this part of the site was also high, with over 6 in 10 of respondents indicating that they had used it (significantly more than the 24% in the 2006 study). The Activity Statement update achieved similar levels of awareness and usage to the web page, as did the BAS service provider subscription electronic newsletter. The BSP view of the Tax Agent Portal achieved a similar level of awareness to the other products (over 7 in 10 were aware of it); although only 37% of all page 65

66 bookkeepers in the sample agreeing that they had ever used it (about half of those aware of it). The relationship manager visits / BSP Advisory program achieved the lowest levels of awareness and usage : Less than six in ten (57%) of the bookkeepers surveyed were aware of these and less than a third (31%) had had one. Respondents who had used each of the products mentioned were then asked to rate their satisfaction with it. As shown in the following table, satisfaction was generally high with in excess of six in ten respondents reporting that they were satisfied with it and less than one in ten indicating that they were dissatisfied. Chart 50: Satisfaction with products used Q30 We are interested in your awareness, usage of and satisfaction with some specific Tax Office products and services. Row % Very satisfied 4 Neutral 2 Very dissatisfied Don t know Bookkeepers Essentials site on (n=334) Activity Statement Update (n=323) The BAS service provider subscription electronic newsletter (n=302) BSP view of the Tax Agent Portal (n=205) Relationship Manager Visits / BSP Advisory Program (n=171) Base: Those who have used each product, as noted BAS service provider newsletter was arguably the most appreciated, with over half (55%) the surveyed bookkeepers agreeing that they had used it and over three quarters (77%) of users reporting that they were satisfied with it (in effect, just over four in ten had used it and were satisfied with it). Respondents were also asked about their usage of specific software packages for both their own use (for their businesses) and for their clients businesses. The results show that MYOB was by far the most prevalent software package used by surveyed bookkeepers for both their business and their clients businesses. page 66

67 As shown in the following chart, almost eight in ten (79%) of the surveyed bookkeepers reported that they use MYOB for their own business. Quick Books was reportedly used by about one in five (21%). Chart 51: Software package used by bookkeepers for their own business Q31 Which of the following bookkeeping / accounting software packages do you use for a) your business? MYOB 79 Quick Books 21 Excel/Microsoft Excel 1 Cashflow Manager/Cash Manager 1 Express 1 Other 2 Base: Total sample, n=550 % page 67

68 A similar pattern was seen when the sample of bookkeepers were asked about the software used for their clients businesses: 91% reported using MYOB, although Quick Books was a lot more prevalent for this purpose with almost half (47%) indicating that they use it. Chart 52: Software package used by bookkeepers for their clients businesses Q31 Which of the following bookkeeping / accounting software packages do you use for b) your clients businesses? MYOB 91 Quick Books 47 Cashflow Manager/Cash Manager 4 Excel/Microsoft Excel 2 Other 16 Base: Total sample, n=550 % Some of the Other bookkeeping / accounting software packages mentioned by respondents included Accounting Edge, Cheops, myworkspace, Payperwork, Pronto and Ostendo. page 68

69 3.10 Tax Compliance Bookkeepers who participated in the survey were asked to indicate their agreement (or disagreement) with a range of statements about tax compliance and the range of issues that the ATO has to manage. The results are outlined in the table below: Chart 53: Agreement with tax compliance statements Q32 Thinking about tax compliance and the range of issues that the Tax Office has to manage, to what extent do you agree or disagree with the following statements: The Tax Office. Row % Strongly agree 4 Neutral 2 Strongly disagree NA/DK supports taxpayers who want to do the right thing is effective in ensuring that people and businesses lodge their business activity statements is fair and professional in how it administers the tax system is effective in making sure that people and businesses pay the right amount of tax applies the tax law with certainty and consistency is keeping the community informed about their efforts in dealing with tax crimes like evasion and fraud is effective in dealing with people and businesses that have deliberately avoided paying tax is effective in dealing with people and businesses who have sought to obtain refunds to which they were not entitled is effective in dealing with people who do not declare all their cash earnings Base: Total sample, n= The surveyed bookkeepers generally agreed that the ATO supports taxpayers who want to do the right thing 76% agreed with this statement and only 6% disagreed. Whilst these bookkeepers generally agreed (44% agreed, 10% disagreed) that the ATO is effective in making sure that people and businesses pay the right amount of tax, there was a lower level of agreement that the ATO was effective in dealing with those who exhibit negative behaviours (e.g. not declaring cash earnings, deliberately avoiding paying tax etc). However, this was because respondents were more likely to give a neutral response to these statements or say that they did not know, rather than a greater level of disagreement. page 69

70 Overall, none of the statements were particularly strongly rejected by bookkeepers in the study. page 70

71 4 REGISTRATION AND PROFESSIONAL DEVELOPMENT This section explores the awareness and understanding of the new registration requirements for BAS service providers, and profiles bookkeepers who provide BAS Services for a fee in terms of their professional development, awareness and membership of professional associations. 4.1 Registration Awareness of the new requirement for bookkeepers who provide BAS services for a fee to register was high: 89% reported that they had heard about this. A smaller proportion (68%) agreed that they had heard of the national Tax Practitioners board. Chart 54: Awareness of the new requirements Q34 Have you heard of the following? A new requirement for bookkeepers who provide BAS services for a fee to their clients to register as a BAS agent 89 The national Tax Practitioners Board 68 None of these 10 Base: Total sample, n=550 % page 71

72 There were no significant differences in the awareness of the new BAS service provider registration requirements by age or gender. Those working for a bookkeeping business (87%) were more likely to be aware of the new requirements than Sole Traders (65%). There were a number of ways that bookkeepers aware of the new registration requirements could have heard about them, and many claimed to have heard about them in a number of ways: Chart 55: Where heard about the new requirements Q35 Where did you hear or read about the new registration requirements? ATO publication - the BAS service provider subscription electronic newsletter (also known as the BAS agent) Through the bookkeeper or accounting professional association that I am a member of The Bookkeepers Essentials page on From tax agent(s) Other bookkeepers The Tax Practitioners Board website Newspaper articles 13 MYOB / MYOB Seminars Franchiser Activity Statement Update % Base: Those aware of the new requirements, n=489 The BAS agent publication, professional associations and the Bookkeepers Essentials page were the most frequently mentioned (each by around half of those aware of the new requirements). Tax agents, other bookkeepers and the tpb.gov.au website were also mentioned (each by around a third of those aware of the new requirements). page 72

73 Over six in ten of the bookkeepers in the study (63%) indicated that they intend to register as a BAS agent within six months of 1 March A further 14% indicated that they intend to do so later on. Almost a quarter (24%) either did not answer the question (because those who were not aware of the requirement to register were skipped over the question) or indicated that they do not intend to register. Chart 56: Intention to register as a BAS agent Q36 When do you intend to register as a BAS agent? No answer 15% I do not intend to register as a BAS agent 9% Some other time 4% Within six months of 1 March % Within 12 months of 1 March % Base: Total sample, n=550 There were no significant differences by age or gender. Comparing registration intentions by their plans for the next 2-3 years did find significant differences: 82% of those who intend to remain in the profession for the next 2-3 years intend to register (at some point). 59% of those intending to retire in the next 2-3 years intend to register. Only 46% of those intending to leave the profession intend to register. page 73