Key Factors to Consider When Choosing an Outsourced Accounting Provider in Australia

Is accounting and managing taxes becoming a headache for you? Is the tax return deadline for this fiscal year in Australia making you nervous? Is in-house accounting making it costly?

Let's face it: Accounting is a devil of a job. From accounting costs to tax return deadlines, nothing is easy. Consequently, many businesses are switching to outsourced accounting in Australia.

Are you willing to hire a company, too? If yes, consider choosing the right one from the pool of outsourcing companies competing for your business.

To do so, we have identified the top six factors to consider when choosing the right accounting services in Australia. 

Read ahead before you hire one. 

Accounting outsourcing frequently brings obstacles such as sloppy account management, errors, and compliance issues. 

Picking the right accounting services in Australia is a challenging but essential decision. Why? 

Let's look at an example to better grasp this. 

BDC PVT. LTD. is a manufacturing business based in Melbourne. The company decides to outsource its accounting services to reduce costs, improve efficiency and focus on other business work. 

They opt for outsourced booking services in Australia. The company owner did not assess them or their expertise. Attracted by their low fees, the business owner did not also check for their lack of experience in Australian tax laws and regulations. 

As a result - the manufacturing business faced several consequences. A few of them include: 

• Hefty fines by the Australian Taxation Office for non-compliance.
• Negligence of data security measures led to cyberattacks. Thus compromising sensitive data and financial information.
• Loss of trust from stakeholders and unforeseen expenses.

Hence, the right outsourced accounting firm in Australia can solve all your headaches overnight, but the wrong one could risk your reputation!

So, to make the right call, consider the following 6 main aspects when outsourcing accounting work in Australia.

Businesses are considering Accounting Outsourcing in Australia from the very start. 57% of respondents to a survey conducted in 2023 said accounting was the leading job being outsourced by startups in Australia. 

However, outsourcing has risks. Therefore, we have compiled the following six aspects that should be evaluated before hiring for accounting services in Australia. 

Let’s dig in to know more. 

1. Accounting Specialties: Expertise, Knowledge and Experience

Hiring an accounting provider should be done with preciseness. The outsourcing accounting firm should have the expertise, knowledge and experience to manage your finances. 

Before hiring outsourced bookkeeping services in Australia, ensure they possess the following:

• They should have appropriate qualifications and certifications, such as CPA or CA. The certifications will exhibit their level of expertise. 
• Experience in your business's industry should be next on the checklist. If a firm has experience unique to your sector, you can rest assured that the company has also mastered the rules, policies, and obstacles for you.
• Technological knowledge is another crucial part. The outsourcing company needs to be proficient with accounting software and technology platforms. 

By weighing these factors, you can choose an accounting outsourcing provider that best suits your needs and your company's objectives.

2. Take Cost-Effectiveness and Scalability into Account

Hiring an outsourced accounting or bookkeeping service in Australia does not mean you have to burn a hole in your pocket. You are outsourcing because you are penny-pinching (apart from several other reasons), correct?

Hence, an outsourcing accounting provider should help you save costs. On the flip side, also provides you with scalable solutions that grow with your business. 

The charges are generally competitive, so look for several options. Get quotes from different service providers, compare and then hire. 

3. Communication: Clear, Consistent and On-Time

A lack of communication can ruin your business. But how would you assess whether the communication is clear, consistent, and timely?

• First, evaluate the firm's responsiveness. Was the response during your initial conversations prompt and comprehensive?
• Second, are you using communication channels, such as emails and video calls, preferred by you? 
• Next, do you have a designated person for all your communications? If yes, is there transparency regarding every aspect of your business, including finances?
• Are they alerting you about all the necessary deadlines, such as tax filing deadlines? 

These are some communicational points on which you can evaluate an outsourced accounting firm in Australia. 

4. Qualifications and Certifications

Another key factor to consider when outsourcing accounting services in Australia is checking the provider's qualifications and certifications. 

Double-check that your accounting firm has certified accountants with the necessary qualifications and certifications. 

These compulsory certifications are:

• A 4-year full-time degree: An accountant should have a bachelor's Degree in Accounting, higher or equivalent. 
• Should have professional recognition by the CPA: The Certified Practicing Accountant in Australia is considered one of the leading professional accounting bodies in Australia. It offers CPA certifications or designations. 
• Professional Certification of a CA: The accountant or the accounting firm should have Chartered Accountant certifications. The certification indicates cutting-edge knowledge and skills in accounting and finance. 
• Industry-Specific Certificates: These certificates depend on the sector or industry the outsourcing accounting firm is working for. They should have relevant certifications related to your precise sector. 

Therefore, before hiring a firm ensure that they have the expertise to do your accounting work. 

5. Technology: Innovative Infrastructure, Security and Privacy

In the accounting business, confidentiality, security, and privacy are essential. There before hiring, look for a firm that:

• Uses advanced accounting software
• Has safe and secure data storage 
• Automation technologies with stringent security protocols
• Strict confidentiality policies 

Moreover, your data could be at risk if the firm does not adhere to the strict security and privacy compliances of the (ATO) Australian Taxation Office. 

Therefore, find a firm that adheres to high-tech accounting infrastructure, secure data storage options, and ATO compliance.

6. Guidance and Support

Every corporation has its unique set of prerequisites for finance management. Finding an outsourced accounting firm that caters to your business needs is fundamental. 

Here's what you can look for in terms of guidance and support from a firm you are willing to hire:

• The accounting firm should advise you on compliance with the Australian Taxation Office (ATO). 
• You can evaluate them based on their responsiveness towards your problems and questions. 
• Consider how the firm provides guidance and support specific to your industry in the initial stages of communication. 
• The firm should also guide you through GST, timely submission of tax returns, accurate reporting, and more.
• Examine the firm's training, staff support and educational knowledge. Get feedback from other businesses that might have hired them for similar services.

Furthermore, according to your tailored business needs, they should provide guidance and support as and when needed. 

Therefore, consider all of the factors above. Moreover, you can ask them questions before signing an agreement. Below are some questions you can ask. 

Thoroughly investigating the accounting company you plan to outsource to in Australia is vital. Before entrusting an accounting service in Australia, ask the firm the following 10 questions. 

Question 1: What is the accounting outsourcing service provider’s niche? How much have they grown or have the experience in this field?

Question 2: How much will they charge you? How will they calculate your pricing or fees?

Question 3: What will be their delivery or response time for your project? Will they provide 24*7 access to your financial or accounting records?

Question 4: Do they have the required qualifications and expertise for your company? Do you have licenses and certifications?

Question 5: Is the service provider updated with the latest information for your business? Do they follow the latest encryption and security protocols?

Question 6: What information or data do they need from you throughout the year? Will their services be scalable? 

Question 7: Can the outsourced accounting firm represent you in the event of a tax audit?

Question 8: Who will be responsible for your accounts? Does the accountant know the latest technology? 

Question 9: What kind of communication will be implemented between you and the outsourced team? Will they have a direct communication with you?

Question 10: Will the team working for your company be assigned to other clients? If yes, what will be the privacy protocols and compliances? 

Apart from asking these questions, you should visit the company in person, get to know the individuals who interest you, and then determine whether or not to trust it completely.

Outsourcing accounting services in Australia can either make or break your business. Before hiring one:

1. You can consider referrals, 
2. Check customer reviews and testimonies or 
3. Get consultations from our certified experts at Augmented Systems. 

We know keeping track of every dollar when running a business can be daunting. But we can help you solve all your problems. With our professionals, you can get hassle-free financial management services.