Spotlight on BKT Services

Founder/Owner: Kim Hodgson

Established: 2014

Location/s serviced: Tieri, Moranbah, Middlemount, Emerald predominantly

Follow on: Facebook

Tell us a bit about you and how your business began?

My business is BKT Services. It stands for BookKeeping & Taxation services. Although my children will tell you BKT is named after them because their names are Brodie, Kate and Todd! That was sheer coincidence though, I didn’t realise until afterwards!

I worked in finance back in Tasmania, which is where I lived before moving here. After 20 or so years doing a variety of accounting work, I moved into bookkeeping and taxation.

My husband and I moved to Tieri in 2013, after a visit here to see my sister-in-law. We loved it and decided to relocate.

Within a few months of living here though, I realised there were no accounting services in town. People were having to use bookkeepers and taxation specialists in Emerald, Rockhampton or Mackay and were increasingly frustrated by the travel and at the lack of personalised service they were getting.

So I decided to set up my own business and lodged my first tax return under BKT Services in 2014. I was inundated from the outset and am proud to say that I’ve built many friendships with people who started out as clients.

What services do you provide for the community?

I do everything from tax returns and bookkeeping to setting up companies, ASIC returns, internal accounting for big companies and training their staff how to use accounting software.

Whilst I predominantly service Tieri, Moranbah, Middlemount and Emerald, my clients stretch from the Gold Coast to Mackay as people who have moved away from the area still choose to work with me, which I’m grateful for.

I think that comes down to the personalised service I offer, and my charter to do the right thing. Yes, I aim to mitigate tax where possible but, above all, I do the right thing by my clients.

What’s the best part about your job?

I really like it when I can give clients a better outcome or better service than they thought possible. For example, most accounting firms operate nine to five, but for a small business owner in Emerald with small children, they need someone willing to work out of hours to help with their accounts and tax, so that’s what I do. I provide a personalised service to make it as easy as possible for my clients.

I also love assisting people to grow their wealth. The majority of people don’t have a comprehensive understanding of finance, so to educate them a little and help reduce their tax and grow their wealth is very rewarding.

What’s the most common mistake you see when people submit their own tax return?

Overclaiming on travel. In the past, people might have gotten away with overclaiming things due to a lack of benchmarking and reporting. But now the ATO has data-matching technology which means everything is registered. The AI they use now is making it impossible to do the wrong thing.

On the flip side, I often see clients who haven’t been claiming for things they could have been, like home office expenses or telephone use for work purposes.

It’s not surprising people get confused. It’s a complex system that’s always being tweaked somehow, which is why accountants study for years and stay abreast of things with ongoing education. Unless you’ve got an accounting degree, you’re not going to be able to get the most out of your tax return by doing it yourself.

What’s the most challenging part about your role?

Explaining tax law to people without getting over complicated and making it even more confusing!

What’s your busiest time of year?

Tax time, which is essentially between the middle of June when we get ready individual tax returns, to the middle of May when company tax returns are due. So, with the exception of four weeks over Christmas and New Year, two weeks at the end of May and two weeks at the beginning of June, it’s pretty much go, go, go all year round!

What’s your top tax tip for individuals?

Make sure you keep all your receipts, documentation, invoices, etc. because without those it makes it harder to make or validate a taxation claim. And be sure to diarise any travel for work, or keep a log book.

It’s also worth noting that because we live in a remote area, you can claim for a Zone Rebate – a small reduction in your taxable income that the Government provides.

We have a lot of small businesses in Tieri too, what’s your tip for them?

You should already have a tax plan in place, so make sure you follow through with any tax planning initiatives you need to implement, such as topping up your Superannuation to potentially reduce your taxable income.

And of course, if you don’t have a tax plan, then my tip would be to work with a tax agent to create one for the new financial year.

What’s the most common question you get asked…and what’s your response?

“What travel can I claim regarding a trip?”

My response is: you can only claim to the extent that your trip actually relates to work.

For example, in Tieri, if you need to go to Rockhampton, Mackay or Emerald to specifically purchase workwear, then that trip could be fully claimable. That means you could potentially claim the applicable ‘cents-per-km’ rate for the trip from Tieri, because we live in a remote environment.

If, however, you go to Mackay for a holiday and just happen to buy workwear whilst you’re there, then travel is only claimable to the extent it relates to work. For example, let’s say you’re holidaying in Airlie Beach and you travel to Mackay town to buy workwear. You could only claim for the trip between Airlie Beach and Mackay, not from Tieri to Mackay.

In either scenario, you must have a receipt for the workwear purchased to support the trip.

What should people look for in their tax accountant?

Always choose someone who has proper credentials with the TPB (Tax Practitioner Board) as a registered tax practitioner or tax agent.

How can people book an appointment with you?

There are 3 ways to book:

• Facebook page: Facebook
• Email: kim@hodgomanagement.net.au
• Phone: 0418 390 664

With the new STP (Single Touch Payroll) rules coming into play, the ATO is advising tax practitioners to wait until the end of July before doing tax returns to avoid any errors being made with STP. So I recommend booking an appointment for the end of July or early August.

We offer a friendly, personalised and honest service. People aren’t just numbers to us. We genuinely care about the success of the people and the businesses we work with…that’s why clients keep coming back.

DISCLAIMER: The information contained in this article is general in nature and is not intended as financial advice. For financial advice based on your individual objectives and financial situation, reach out to BKT Services or another registered tax agent or financial advisor.