Time to do what Bookkeepers do Best

**** IMPORTANT UPDATE: As announced on 31 July 2024, in response to communication from the Joint Bodies of our industry associations, and in response to recommendations by the Treasury and TPB, the Hon Stephen Jones MP has introduced a transitional period for the new code of conduct requirements.

Firms with 100 employees or less now have until 1 July 2025 to bring themselves into compliance with the new requirements. Practices with 101 employees or more have until 1 January 2025.

I will still be taking the same approach to the changes as outlined below, and I recommend getting started now so any work associated with implementation doesn't cause a bottleneck or capacity issue in your business. ***

On the eve of changes to the Tax Practitioners Board code of conduct coming into effect, I can hear the collective angst of Bookkeepers and Accountants reverberating around the nation.

We have tomorrow’s 1 August start date, though there no doubt will be a transition period (now announced as 31 January 2025 and 31 July 2025 as above). The Tax Practitioners Board are preparing their guidelines (expected to be released in September), and our industry bodies are providing guidance and resources – helping us digest, interpret and navigate the requirements and impact of the Determination.

In this transition period, it’s time for us Bookkeepers to do what we do best – be methodical, systematic, proactive, pragmatic, and positive.

Our industry is no stranger to change – we’ve navigated changes to Single Touch Payroll (STP), superannuation, and the introduction of cloud accounting to name a few. And while these may have been huge at the time, we got through each of them, and our industry is more robust, efficient, and professional as a result.

The new code of conduct is aimed at raising the standards of our profession, ensuring greater trust and transparency with our clients. Ultimately, this can only be a good thing for the long-term health of our industry.

Really, the changes are lock-step in line with what we are all working towards within our practices (and what we cover in the Academy already) – creating clear, defined processes and procedures, efficient workflows, transparent and ethical work practices, best practice operations, and a strong, scalable, resilient business. If these things have been on your to-do list for a while, the new code Determination may just be the rocket needed to put a deadline and action plan against them (and let’s face it – we all need a rocket sometimes).

While we may not be 100% clear on the details of the implementation or impact yet, the Tax Practitioners Board will provide more specific instruction via their soon to be released guidelines, and our industry associations will do the same, guiding us as they always do.

In the meantime, it’s important to be proactive and start preparing your business for change. I’m taking a very methodical approach to reviewing my practice and creating an action plan in line with the changes. It looks a little like this:

• Review the Determination and Explanatory Statement – Become familiar with the new requirements and their potential impact. Click on the links for the Determination and Explanatory Statement as released by the Department of Treasury.
• Conduct Research and Learning with Your Industry Association – There is a lot of noise in the industry at the moment about the changes. Try not to get too distracted by it – listen to your industry association, let them be your representative, attend the webinars, download the resources and start putting a plan in place.
• Review Your Practice. Review the relevant areas of your business against the Determination, Explanatory Notes, and information provided by your industry association. This may include looking at your processes and procedures, team development and training, documentation management, client procedures and workpaper management, policies and engagement letters, and contingency planning.
• Create an Action Plan - Identify any gaps in your current practices and note any changes you need to make to be compliant with the new code. Clearly outline action you need to take to be compliant, prioritising each item based on its importance, urgency and complexity. Action items may include things like:
• Internal Education – for yourself or your team. Determine training or education needed to fully understand and implement the new requirements. This might involve attending webinars, workshops, technical training, accreditations, or reading up-to-date resources.
• Update Plans, Policies and Procedures. Determine operational or planning elements and systems that need to be created or updated to ensure you’re compliant. This may include your contingency plan, disclosure policy, supervision policy, client acquisition and onboarding process, or team training and development plan.
• Update Documents / Templates. Determine documentation that needs to be updated to reflect, disclose and communicate the changes, e.g., engagement letters, client communication templates, employment contracts, and internal policy documents.
• Client Education. Determine how you will educate your clients about the new requirements and the impact they will have on client engagement and communication. There are certain disclosures that need to be made in association with the new code, some of which are time sensitive, so ensure that you across these. Transparency and clear communication will help maintain trust and confidence.

While there is no doubt that change can be challenging, it is also an opportunity for growth and improvement (as an individual practice, profession and greater industry). By taking a structured and proactive approach, we can navigate these changes smoothly and continue to uphold the highest standards of our profession.

As mentioned, we no strangers to change – our industry has evolved significantly over the years, and it will no doubt continue to do so. We need to embrace the process and commit to creating a more robust, effective and compliant industry as a whole. Lean In to your Industry Associations, support each other, and let's navigate this together.

We have great resources available in the Academy dedicated to creating best practice processes, procedures and client management strategies, including practical templates you can use directly in your business to manage client workpapers and tasks (including all your notes, records, assumptions and workings). These will continue to be expanded on and fine-tuned as the Tax Practitioners Board and our industry associations release further guidelines.

Stay tuned, stay strong, and keep thriving!