Why Your Bookkeeper May Need More Information From You
- Jul 13
- 6 min read
Why We May Be Asking More Questions: New Compliance Requirements for Bookkeeping Businesses
You may have noticed that professional service providers seem to be asking for more information than they used to.
Banks, accountants, lawyers and other advisers are increasingly required to verify identities, understand who owns and controls a business, document their procedures and maintain more detailed records.
The bookkeeping profession is no exception.
Over the past few years, the regulatory requirements applying to Registered BAS Agents have increased significantly. More recently, new quality management and anti-money laundering obligations have added another layer of responsibility to the way professional bookkeeping businesses operate.
These requirements are designed to improve professional standards, protect clients and make it harder for businesses and financial systems to be used for illegal purposes.
They also mean that we may occasionally need to ask you for information or documentation that we have not requested previously.
Here is what is changing and what it means for our clients.
A Formal Quality Management System
From 1 July 2025, registered BAS agents were required to establish, document, maintain and enforce a formal system of quality management.
This is more than simply having a few internal checklists.
A Quality Management System sets out the policies, processes and controls a professional bookkeeping business uses to ensure its work complies with the Tax Practitioners Board’s Code of Professional Conduct.
For a bookkeeping practice, this may cover areas such as:
Reviewing and checking completed work
Supervising team members
Allocating work to appropriately skilled staff
Protecting confidential client information
Managing conflicts of interest
Maintaining accurate records
Meeting lodgement and payment deadlines
Correcting errors when they are identified
Keeping staff knowledge and training up to date
Managing complaints or concerns
Reviewing whether the practice’s systems remain effective
These processes provide greater consistency and accountability.
They also reduce the risk of important work depending entirely on one person’s memory or individual way of doing things.
At Love Bookkeeping, documented procedures, review processes and secure systems form an important part of how we protect our clients and maintain the quality of the work we provide.
New Anti-Money Laundering Obligations
Australia has expanded its anti-money laundering and counter-terrorism financing laws to include certain services provided by accountants and other professional service providers.
These laws are intended to prevent professional services from being used to hide the proceeds of crime, finance illegal activity or disguise the true ownership and control of assets and businesses.
From 1 July 2026, businesses providing certain designated professional services must comply with the new Anti-Money Laundering and Counter-Terrorism Financing requirements.
Not every bookkeeping task will necessarily fall within the scope of these laws. However, bookkeeping businesses must understand which services are covered, assess their risks and have appropriate procedures in place.
Depending on the services being provided, these requirements may include:
Enrolling with AUSTRAC
Developing an Anti-Money Laundering and Counter-Terrorism Financing program
Assessing the risk associated with particular services and clients
Verifying client identities
Identifying the people who ultimately own or control a business
Monitoring for unusual or suspicious activity
Keeping prescribed records
Reporting certain matters to AUSTRAC when legally required
This does not mean that we suspect our clients of doing anything wrong.
It means that professional service providers are being given a greater role in protecting Australia’s financial system.
What Does “Know Your Customer” Mean?
“Know Your Customer”, often shortened to KYC, refers to the process of confirming who a client is and understanding the nature of the relationship.
For an individual, this may involve confirming details such as their full legal name, date of birth and residential address using reliable identification documents.
For a company, trust, partnership or other entity, the process may be more detailed. We may need to confirm:
The legal name and registration details of the entity
Its ABN or ACN
Its registered and principal business addresses
The people authorised to act on its behalf
Its directors, trustees or partners
The individuals who ultimately own or control it
The general nature of its business activities
The source or purpose of certain transactions where relevant
In some circumstances, information may need to be updated or verified again during the client relationship.
This may occur when there is a change in directors, shareholders, trustees, ownership, business structure or the people authorised to provide instructions.
Why Can’t We Simply Rely on Information Already in Xero?
Accounting software contains a great deal of useful information, but it is not necessarily sufficient for identity and regulatory purposes.
The contact details entered into Xero may be incomplete, outdated or entered by someone other than the business owner. The name appearing on a bank transaction may also be different from the legal name of the person or entity involved.
Regulatory checks may require us to verify information using independent and reliable sources.
This is one of the many areas where software can assist, but cannot replace, professional oversight.
Increased Professional Education Requirements
Registered BAS agents must complete ongoing Continuing Professional Education, generally referred to as CPE, to maintain their knowledge and registration.
The current requirement for BAS agents is at least 90 hours of relevant CPE over a three-year period, including a minimum of 20 hours each year.
This is a significant commitment, but an important one.
Bookkeepers work in an environment where payroll, superannuation, GST, employer obligations, technology, cybersecurity and record-keeping requirements regularly change.
Continuing education helps ensure that registered BAS agents remain competent and understand the rules that affect their clients.
It may include training relating to:
GST and BAS preparation
Payroll and employee entitlements
Superannuation obligations
Single Touch Payroll
Professional ethics
Cybersecurity and privacy
Software and systems
Anti-money laundering requirements
Quality management
Changes to tax and business legislation
Professional development is not an optional extra for a registered BAS agent. It is part of maintaining the knowledge required to provide accurate and compliant services.
What These Changes May Mean for You
For most clients, our day-to-day bookkeeping service will continue as usual.
However, you may notice some additional steps in our processes.
We may ask you to:
Provide or confirm identification documents
Confirm your business’s legal structure
Identify directors, shareholders, trustees or beneficial owners
Tell us when ownership or authorised contacts change
Update an engagement letter or service agreement
Confirm who is authorised to give us instructions
Explain an unusual transaction or provide supporting documentation
Follow a particular approval or record-keeping process
We understand that additional requests can sometimes feel inconvenient, particularly when we have worked with you for a long time.
However, being an existing client does not always remove our obligation to ensure that the information we hold is complete, accurate and current.
If we request information from you, it is not because we are trying to create unnecessary paperwork. It is because professional bookkeeping businesses must be able to demonstrate that they understand their clients, manage risks appropriately and comply with their legal and professional obligations.
Protecting Your Information
Naturally, asking for more identification and business information also creates a responsibility to protect it.
Information should only be requested when there is a legitimate business or regulatory reason for doing so. It should be stored securely, accessed only by authorised people and retained or disposed of in accordance with applicable legal requirements.
At Love Bookkeeping, privacy and data security form part of our broader professional and quality management responsibilities.
We continually review the systems we use, who can access client information and how documents are shared and stored.
Where possible, sensitive information should be provided through an approved secure method rather than being sent through unsecured channels.
Why Professional Compliance Matters
Many of these requirements occur behind the scenes.
Clients may not see the time spent developing procedures, reviewing work, completing training, maintaining registrations, updating risk assessments or implementing secure systems.
However, these activities are an important part of engaging a professional bookkeeping business.
They help provide confidence that:
Your work is being completed using consistent processes
Staff are appropriately trained and supervised
Your information is being handled responsibly
Errors and risks are more likely to be identified
Your bookkeeper remains informed about changing requirements
Your BAS and payroll obligations are being managed professionally
The business has systems in place to maintain service continuity
Compliance is not simply about completing paperwork for a regulator.
Done properly, it supports better service, stronger systems and greater protection for both the client and the bookkeeping business.
We Appreciate Your Cooperation
The professional requirements applying to bookkeeping businesses are continuing to evolve.
As we implement these changes, there may be times when we need additional information or assistance from you. We will always aim to explain what is required and make the process as straightforward as possible.
We appreciate your patience and cooperation when responding to our requests.
By working together, we can continue to maintain accurate records, meet your business obligations and protect the integrity of the financial information entrusted to us.
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