The 5 steps you need to take to appoint a new accountant for your business
5 steps to appointing a new accountant
In the past when you decided to change your accountant your new accountant would do the paperwork to link their accounting practice to you and the Australian Tax Office (ATO).
The ATO wants you to have more control over this and from the 13th November 2023 you’ll now need to link yourself to your new accountant. This will apply to all types of entities with an ABN (excluding sole traders and individual taxpayers) and is called client-to-agent linking.
Why the ATO is making this change
The ATO wants to strengthen the security of the client-to-agent linking process so that you, your accountant and the ATO have confidence that you have authorised your accountant to, have access to your information, and act for you.
This will help the ATO to defend against increasingly sophisticated criminal attempts to defraud the system. For example, criminals may pose as agents to gain access to client information and services available on the ATO digital platforms.
When do you need to complete a ‘Client-to-agent linking’ nomination
You will need to complete the agent nomination when you engage a new tax or BAS agent, or payroll service provider. Or if you’re asking your current accountant to start representing you for a new obligation, such as income tax.
The ATO has provided lots of information if you want to know more about this process.
Here is exactly what you’ll need to do in 5 steps
Step 1 - Set up your Digital ID (myGovID)
Before you start you’ll need the following;
A smart device - the myGovID app is compatible with most smart devices and is only available from the Apple App Store or Google Play.
A personal email address - as it’s your personal Digital Identity, your identity documents will be linked to the email you choose. It should not be a shared or work email address.
The three steps to set up your myGovID
1. Download the myGovID app available from the App Store or Google
2. Enter your details - Open the myGovID app on your smart device and follow the prompts. You need to enter your full name, date of birth and a personal email address.
3. Choose your identity strength
You can set up a Basic, Standard or Strong myGovID.
The government online service you want to access determines the minimum identity strength you need.
Find out what identity strength you need for the online service you want to access.
While you may be asked to verify an Australian passport and other documents in the app, this is not required if you’ve achieved the identity strength you need.
Step 2 - Link your myGovID to your Australian business number (ABN)
Follow this link to complete this step Relationship Authorisation Manager (RAM)
Step 3 - Login to Online services for business
Use your myGovID to log in to Online services for business
Step 4 - Nominate your authorised agent in Online services for business
To complete this step you'll need your agent's (or payroll service provider’s) registered agent number.
From the Online services for business home page:
select Profile, then Agent details
at the Agent nominations feature, select Add
on the Nominate agent screen, go to Search for agent
type your agent’s (or payroll service provider's) registered agent number and select Search
select the agent you want to nominate
check that the agent's details are correct
complete the Declaration
select Submit.
You'll now see your agent’s details listed under Agent nominations. If you would like more information please follow this link.
Step 5 - Let your agent know you have nominated them
The agent you nominate won't receive an automated system notification. It’s important to let them know when you've completed the nomination step.
Your agent has 28 days to action the nomination before it expires.
Please contact me paul@congdonfuzi.com.au if you would like more information or if you have any questions.