The secret to making Financial Reporting to the QBCC a breeze! Have you been burning the midnight oil in your office to finalise bookkeeping tasks or work on your business financial administration recently just so you could meet the QBCC reporting requirements? It’s certainly one way to get yourself out of trouble but it doesn’t have to be like this. In this article I’ll give you some tips on how to take back time you might have wanted to spend in a different way. Deadline to submit your financial information for the 2019 financial year to the QBCC has just passed. All QBCC licence holders were required to submit their financial information by 31 December 2019. Incredibly, approx. 40,000 builders and contractors have not complied. However, some licensees who have not submitted their reports to the QBCC by this date can now breathe a sigh of relief. The QBCC has agreed to extend a further 12 months to SC1 and SC2 and Category 1 to 3 builders and subbies to strengthen their financial health in line with new laws and the Minimum Financial Requirements (MFRs). If you’re in any of these categories, be aware that the QBCC nonetheless expects you to submit your financial information as soon as possible. Unfortunately, for Category 4 to 7 licensees the situation is different. If you haven’t submitted your financial information you can expect a follow up call from the QBCC in the next few weeks. Unless you act then, your license may be at risk of being suspended or cancelled.
Challenges of QBCC Financial Reporting Many builders and tradies have asked me what to do to make QBCC reporting easier for them and not have it turn into a nightmare. My stock-standard answer usually is: systemise and streamline your business’ financial administration. When you have to provide your financial information to the QBCC at set intervals, or even on an ad hoc request, you need to have financial systems in place that allow you to tap into real-time data and produce reports easily.
For example, you need to provide the QBCC with a figure for both your Maximum Revenue and your Net Tangible Assets. They are set at the following levels: • For self-certifying category 1 (SC1) licensees, the minimum NTA is set at $12,000 for a fixed maximum revenue of $200,000. • For self-certifying category 2 (SC2) licensees, the minimum NTA is set at $46,000 for a fixed maximum revenue of $800,000. If you have your figures handy you can go straight to the QBCC website and use the online Calculator to work out your Maximum Revenue and Net Tangible Asset.
2020 February Issue | 29
