Bookkeepers and Mobile Bookkeeping Services

Extract from ATO website :: http://www.ato.gov.au/businesses/pathway.asp?pc=001/003/078/003/001&mnu=30290&mfp=001&cy=1

State of the industry research – understanding the bookkeeping profession (summary) – 2005

Background

The understanding the bookkeeper profession research project was commissioned by the Tax Office as an industry profiling initiative. The research was conducted by TNS Social Research, an external consultant.

Overall aim of research

The aim of the research was to provide a benchmark picture of the bookkeeping industry and to understand their attitudes and opinions across a range of issues facing the industry. Specifically, the
research aimed to explore:

• bookkeepers’ perceptions of the tax profession, practice management and their own work practices, and
• bookkeepers’ interaction with the Tax Office.

The research program consisted of two phases – qualitative (nine focus group forums and eight site visits) and quantitative (survey of 923 bookkeepers). This research was aimed at bookkeepers working in the bookkeeping industry as sole practitioners or working for a bookkeeping business, bureau or franchise. The survey did not include bookkeepers working for businesses which do not offer bookkeeping services.

Key recommendations

The following findings were highlighted by TNS Social Research in the executive summary.

• Bookkeepers desire a greater degree of recognition/acknowledgment as an increasingly important part of the tax industry. Thus, it is recommended the Tax Office continue to build on its efforts to engage with the bookkeeping industry. To facilitate an effective engagement, the Tax Office should ensure communications with bookkeepers reflect their key drivers/motivators:
  • flexibility of the job
  • orderliness/clarity, and
  • client relations.
• A more professional bookkeeping industry would benefit both the Tax Office and bookkeepers themselves. Marketing initiatives should highlight the increased importance of bookkeepers and, consequently, the need for a greater degree of professionalism in the industry.
• There is a perceived quality control problem in some sectors of the industry. It is recommended the Tax Office support the establishment of one or more professional bodies for bookkeepers and subsequently work with industry representatives to set up appropriate mechanisms to improve the quality of bookkeeping.
• Many bookkeepers do not participate in any form of ongoing professional development. It is, therefore, recommended that the Tax Office, possibly in conjunction with the accounting professional associations, offer seminars and training courses aimed specifically at bookkeepers. The format/delivery of this training needs to reflect the large proportion of part-time bookkeepers. For example, training sessions should be conveniently located and scheduled at times to suit the part-time operator.
• Many bookkeepers work in ‘isolation’, having very little contact with other bookkeepers. The Tax Office should work with industry bodies to facilitate and encourage greater contact and networking amongst bookkeepers via:
  • conducting informal ‘information sessions’ on topics of interest to the segments of bookkeepers who are more ‘isolated’, and
  • facilitating the growth of professional bookkeeper bodies and encouraging membership.
• Bookkeepers generally have little contact with the Tax Office and, while the majority are satisfied with the service received, only one in five is strongly satisfied. To improve this level of satisfaction, it is recommended the Tax Office consider implementing a variety of specific services for bookkeepers. The services most desired by bookkeepers include:
  • flexible, staggered BAS deadlines
  • more training/information seminars
  • a bookkeepers’ portal, and
  • a dedicated phone line for bookkeepers.
• The research indicated that there is an increasingly important and interdependent relationship between bookkeepers, tax agents and their respective (and often mutual) clients. This relationship needs to be recognised and supported by the Tax Office.

Key findings

The following list contains the key findings of the research.

• The majority of bookkeepers are:
  • female (77%), and at least 40 years of age (71%)
  • sole practitioners/contractors (77%), and
  • comfortable with their working hours (61%) – the mean number of hours worked per week is 32.4.
• Sixty-five per cent of bookkeepers did not attend any workshops, courses or seminars conducted by the Tax Office or professional associations over the past year.
• Bookkeeping is a diverse industry in terms of client numbers. The median number of bookkeeper clients is 10 with a standard deviation of 52.7 – 48% reported no growth in client numbers over the past 12 months.
• Word of mouth is the major source of new business for bookkeepers, followed by direct referrals from tax agents.
• The vast majority (80%) of bookkeepers are satisfied with their job – only 4% are dissatisfied.
• Around 57% of bookkeepers are highly optimistic – only 2% are very pessimistic.
• Motivational factors cited by bookkeepers revolve around flexible working arrangements and client relationships.
• De-motivating factors cited by bookkeepers include the complexity of tax legislation, the Tax Office’s approach to deadlines and penalties and the poor quality of some bookkeepers’ work.
• While most bookkeepers generally have a low level of contact with the Tax Office, the relationship between bookkeepers and the Tax Office is quite positive, with 64% satisfied with the overall level of service.
• The major issues bookkeepers want the Tax Office to address are:
  • lack of recognition for bookkeepers
  • the complexity of the tax legislation
  • Tax Office telephone services for bookkeepers, and
  • BAS lodgment deadlines.
• The products and services most desired by bookkeepers are:
  • more flexible, staggered BAS deadlines
  • information seminars
  • a bookkeepers’ portal
  • a dedicated phone line for bookkeepers, and
  • a dedicated bookkeeper section on Tax Office website.

Major research findings

The following information contains the major research findings of the survey.

Bookkeeper characteristics

Seventy-seven per cent of bookkeepers are female and 71% are at least 40 years of age. High proportions (51%) of bookkeepers are located in the suburban area of a capital city, with only 1% located in a remote location.

Qualifications and courses

Sixty-five per cent of bookkeepers have not attended any workshops, courses or seminars conducted by the Tax Office or professional associations over the past year. In addition, 34% of bookkeepers had no formal qualifications prior to starting as a bookkeeper and 43% have not completed any formal qualifications while working as a bookkeeper. The most common type of qualification was some form of software provider course, while 41% of those surveyed had completed either a TAFE diploma or university degree.

Skills required to be a good bookkeeper

Bookkeepers were asked to consider how important specific skills are to being a good bookkeeper. The results are:

Work structure

Seventy-seven per cent of bookkeepers surveyed are sole practitioners/contractors, 18% bookkeeping businesses/franchises and 3% tax practices.

Workload issues

The average number of hours worked per week by bookkeepers is 32.4 hours. The results show:

• 20% of bookkeepers are working less than 20 hours per week
• 17% of bookkeepers are working 20–29 hours per week
• 26% of bookkeepers are working 30–39 hours per week
• 20% of bookkeepers are working 40–49 hours per week, and
• 17% of bookkeepers are working over 50 hours per week.

Fifty-one per cent of bookkeepers surveyed classify themselves as full-time, 33% part-time and 15% casual (higher percentages [51%] of females are part-time/casual compared to males [36%]).

Interestingly, 61% of bookkeepers feel their working hours are ‘about right’, 24% consider their hours to be excessive and 14% would like to work more. Those working as contractors are more likely to feel that the hours they are working are ‘about right’ (65%) compared to those in a business/franchise (52%).

Technology orientation

Bookkeepers were asked to describe their technological capacity and usage. The results are:

• 70% very/fairly high tech
• 27% mid tech, and
• 3% low tech.

Sixty-nine per cent of bookkeepers use ‘MYOB’ as the main software package, and 10% use ‘Quick Books’.

Client details

The median number of bookkeeper clients is 10 – 29% of bookkeepers have 0-5 clients, 24% have 6-10 clients, 31% have 11-30 clients and 14% have over 30 clients.

The majority (59%) of contractors have 10 or less clients, while the majority (69%) of businesses/franchises have over 10 clients.

Forty-eight per cent of bookkeepers surveyed reported no growth in client numbers over the past 12 months and 37% reported an increase in client numbers. The growth was more prevalent in bookkeeping businesses/franchises, and they experienced a 60% increase in client numbers. Conversely, 69% of contractors had no growth or a decline in client numbers.

The major source of new business for bookkeepers is word of mouth, followed by direct referrals from tax agents (the mean number of referrals from tax agents over the last 12 months was 3.78).

Job satisfaction

The vast majority (80%) of bookkeepers are satisfied with their job – only 4% are dissatisfied.

Degree of optimism/pessimism

Fifty-seven per cent of bookkeepers are very optimistic about the future of the profession. Conversely, only 2% are very pessimistic.

Overall perceptions of the bookkeeping industry

The industry is quite fragmented and insular – 45% of those surveyed have little, if any, contact with other bookkeepers.

Bookkeepers were questioned on the most rewarding things about being a bookkeeper in 2005. The things bookkeepers find extremely motivating are:

• flexible working arrangements (66%)
• seeing satisfied and happy clients (65%)
• transforming messy accounts into clear, tidy ones (59%)
• helping clients solve problems (51%)
• building personal relationships with clients (49%), and
• solving complex problems (48%).

Bookkeepers were then asked what things about being a bookkeeper in 2005 cause the greatest problems. The things rated as major problems are:

• complexity of the tax legislation (24%)
• poor quality work from some bookkeepers in the industry (24%)
• BAS lodgment deadlines (23%)
• application of penalties by the Tax Office (23%)
• continual changes to the tax legislation (21%), and
• not being able to lodge BAS returns electronically on behalf of clients (21%).

Major issues/concerns for bookkeepers

The top five issues considered either very or extremely important for the Tax Office to address are:

• lack of recognition for bookkeepers (59%) – this was rated by 37% of bookkeepers as extremely important. It was most important to businesses/franchises, with 59% rating this as extremely important.
• complexity of the tax legislation (66%)
• Tax Office telephone service generally (60%)
• BAS lodgment deadlines (54%), and
• inconsistent advice from Tax Office staff (51%).

Perceptions of the overall relationship with the Tax Office

Bookkeepers were asked to rate how satisfied or dissatisfied they were with the overall service received from the Tax Office over the past 12 months. Ratings were quite positive with:

• 64% satisfied
• 21% neutral, and
• 13% dissatisfied.

There is generally a low level of contact with the Tax Office by bookkeepers. When asked about contact with the Tax Office (initiated by bookkeepers), the majority (57%) contacted the Tax Office either quarterly or annually, 16% made monthly contact and 21% either never contacted the Tax Office or offered no response. The qualitative results indicate that most of the contact is about
procedural/administrative matters and usually by telephone.

Contact initiated by the Tax Office was much lower, with 36% of bookkeepers being contacted by the Tax Office either quarterly or annually (56% either had not been contacted by the Tax Office or
offered no response). The qualitative results indicate that most of the queries are about BAS lodgment, usually by letter or email.

Bookkeepers were asked to indicate their three most desired products and services. The results in order of the most preferred are:

• more flexible, staggered deadlines for BAS returns (30%)
• information seminars (29%)
• a bookkeepers’ portal (23%)
• a dedicated phone line for bookkeepers (22%), and
• a dedicated bookkeepers section on the Tax Office website (19%).

Last Modified: Monday, 24 October 2005

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