Accounting outsourcing Australia is a common search for practices looking to manage growing workloads without expanding their local team. BAS deadlines arrive, tax returns pile up and experienced accountants spend too much time on routine preparation work.
Hiring locally is not always straightforward. Graduate accountants need training and supervision, while experienced accountants in Sydney or Melbourne come with a significant salary commitment.
An offshore accountant can take on much of the preparation work, giving local staff more time for reviews and client advice.
The key is knowing what to delegate first.
Accounting Outsourcing in Australia: Which Tasks Should Move First?
There is no need to move an entire client portfolio offshore from day one. In fact, starting with a few well defined tasks usually makes more sense.
The following six areas are worth considering, roughly in the order that many practices would find practical.
1. Bookkeeping and Reconciliations
For practices exploring accounting outsourcing Australia options, bookkeeping is a sensible starting point. The work is regular and the procedures are usually well established.
An offshore bookkeeper can process transactions, reconcile bank accounts, allocate expenses and flag discrepancies. For a practice managing dozens of small business clients, removing even part of this weekly workload can make a difference.
The Australian accountant still reviews unusual transactions and unresolved reconciliation items before accepting the completed work.
Start with clients whose records are relatively straightforward. Once the bookkeeper understands the firm’s standards, additional files can be introduced.
2. BAS and IAS Preparation
Once bookkeeping is running smoothly, BAS and IAS preparation is a logical next step.
An offshore accountant can review GST coding, reconcile relevant accounts and prepare draft statements with the supporting documentation.
However, preparing a BAS is different from taking responsibility for it. The registered Australian tax practitioner must provide appropriate supervision, review the tax treatment and ensure lodgement is properly authorised.
Keeping this distinction clear makes the review process easier to manage and helps the practice maintain professional control.
3. Payroll Processing
Payroll can take up a surprising amount of time, especially for firms handling weekly or fortnightly pay runs across several clients.
An offshore team member can assist with timesheets, leave balances, payroll reconciliations and preparing pay runs in the client’s existing software.
The local team should continue to handle complex employment questions, review exceptions and approve final payments or submissions.
Payroll also involves personal and financial information, so access should be limited to what the employee needs to do the job.
4. Individual and Company Tax Return Preparation
Tax return preparation offers another opportunity to free up senior accountants, particularly during the busiest months of the year.
A suitably experienced offshore accountant can organise client records, prepare draft returns, update depreciation schedules and compile supporting calculations.
The Australian practitioner then reviews the work, addresses technical matters and authorises lodgement.
Not every return is suitable for delegation. Complex capital gains tax matters, unusual business structures and issues requiring significant judgement may be better handled primarily by the local team.
5. SMSF Administration
SMSF work requires more specialised knowledge, so it is generally better introduced after the offshore employee has demonstrated consistent performance.
An accountant familiar with Class or BGL can assist with transaction processing, investment reconciliations, financial statements and preparing documentation for audit.
The Australian specialist remains responsible for the appropriate review and professional decisions.
Before assigning SMSF work, check the candidate’s practical software experience rather than relying on general accounting qualifications alone.
6. Workpaper Preparation
Workpapers are another area where experienced accountants often spend more time than they would like.
An offshore employee can prepare schedules, reconcile balances, document account movements and organise supporting evidence using the practice’s templates.
This means the Australian reviewer receives a more complete file rather than having to assemble much of the documentation personally.
The benefit is not just time saved. Consistent workpapers also make it easier to identify missing information and resolve questions before final review.
Accounting Outsourcing Australia: What Should Stay Onshore?
Accounting outsourcing Australia arrangements should reduce preparation workloads without transferring professional accountability away from the local practice.
Client advice, complex tax decisions, final technical reviews and responsibilities requiring a registered tax practitioner must remain with appropriately authorised professionals.
In practice, that means the local team should retain control over:
Client relationships and professional advice
Complex tax positions and matters requiring judgement
Final reviews and relevant authorisations
Tax agent obligations and appropriate supervision
Decisions involving significant financial or compliance risks
The Tax Practitioners Board’s guidance on outsourcing and offshoring is an important reference when establishing these arrangements.
Firms need to consider confidentiality, informed client consent where required, supervision and the competence of people performing the work.
A useful rule is to decide who reviews and approves each task before deciding who prepares it.
That way, the Australian team stays responsible for professional decisions while offshore staff support the work leading up to them.
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Accounting Outsourcing Australia: Software and Data Security
When comparing accounting outsourcing Australia providers, most practices already have the software they need. The challenge is ensuring an offshore employee can access it securely and work within existing processes.
Depending on the work involved, this might include Xero, MYOB, QuickBooks, Class, BGL and the firm’s existing document management systems.
Where the software allows it, offshore employees should use individual accounts with permissions matched to their roles. Sharing a senior accountant’s login is not a sensible alternative.
Security arrangements should cover multi factor authentication, restricted access, secure file sharing and activity records. There should also be a clear process for removing access when someone leaves the team.
ISO 27001 aligned security practices can provide a useful framework. However, firms should check the provider’s actual controls and certification status rather than assuming compliance.
Client consent, confidentiality and overseas data handling arrangements also need attention before work begins.
For more detail on how these arrangements operate, Intogreat’s offshore staffing FAQs cover recruitment, onboarding, security and ongoing support.
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How an Offshore Accountant Fits into Your First 90 Days
For a practice making its first offshore hire, an experienced bookkeeper or intermediate accountant is often more useful than a highly specialised candidate.
Look for someone with relevant Australian accounting experience, confidence using the firm’s software and the ability to raise questions when instructions are unclear.
Working hours should also fit the practice. Teams based in the Philippines can arrange an appropriate overlap with AEST, allowing staff to discuss queries and complete reviews during the Australian working day. Daylight saving differences should be considered.
Rather than handing over dozens of client files immediately, begin with an offshore team pilot.
First 30 Days: Learn the Practice
Start with system access, introductions and a small number of straightforward tasks.
Provide examples of completed work, explain review expectations and identify who the employee should contact when questions arise.
At this stage, accuracy matters more than volume.
Days 31 to 60: Build Confidence
Once the employee understands the workflow, gradually increase the number of files.
Review recurring errors, clarify instructions and track how much local review time is required.
You should begin to see which tasks can be handled independently and which still need closer supervision.
Days 61 to 90: Decide What Comes Next
By the third month, the practice should have a reasonable picture of the employee’s strengths and the amount of support they need.
If the work is accurate and communication is reliable, introduce more complex tasks or additional clients.
There is no benefit in expanding too quickly. One well trained offshore employee is more useful than a larger team that creates extra work for reviewers.
Comparing Local and Offshore Accounting Costs
Cost is often what starts the offshoring conversation. However, salary alone does not tell the full story.
For firms considering offshore staffing in Sydney or offshore staffing in Melbourne, a local intermediate accountant can represent a significant annual commitment.
An indicative salary range for an intermediate accountant is around $75,000 to $95,000, depending on experience and the position. Employers also need to account for superannuation and other employment expenses where they are not already included.
A fair comparison should consider the following:
| Cost factor | Sydney or Melbourne accountant | Offshore accountant |
|---|---|---|
| Annual salary or fee | Indicative salary of $75,000 to $95,000 | Depends on experience and provider quotation |
| Employment costs | Superannuation and other applicable expenses | Confirm what the monthly fee includes |
| Recruitment | Advertising, recruitment and onboarding | Recruitment and setup arrangements vary |
| Equipment | Hardware, workspace and software | Check what the provider supplies |
| Management | Internal supervision and reviews | Internal reviews plus any provider support |
Local salary figures are indicative rather than a guaranteed market rate. Obtain current quotations and compare equivalent experience levels before making a decision.
The offshore price also needs to cover the full service. Ask about equipment, recruitment, employment arrangements, leave coverage and ongoing management.
More importantly, consider whether the arrangement reduces pressure on the people already working in the practice.
An offshore accountant who consistently prepares accurate files can be valuable. Someone who requires extensive corrections may deliver little benefit, regardless of the hourly rate.
Intogreat’s hospitality finance case study provides an example of offshore finance operations at a much larger scale. The project involved a 27 person finance team and approximately $1.1 million in annual savings.
Those figures should not be treated as a forecast for a small accounting firm, but the case study demonstrates how structured offshore processes can support an established finance operation.
Frequently Asked Questions
Is Offshore Accounting Compliant with TPB Rules?
It can be, provided the practice meets its relevant obligations. These include appropriate supervision, confidentiality, competence and client consent where required. Registered tax practitioners remain responsible for meeting their professional obligations.
How Is Client Data Protected?
Client data should be handled through secure systems, individual access permissions, multi factor authentication and documented confidentiality procedures. Practices should also check where information is accessed or stored and assess any overseas disclosure requirements.
Can Offshore Accountants Help During Tax Season Peaks?
Yes, particularly with tax return preparation, reconciliations and workpapers. However, it is better to recruit and train staff before the busiest period. Introducing someone during a major deadline can create additional review work.
How Quickly Can We Start?
This depends on the role, candidate availability and onboarding requirements. Recruitment may take several weeks, and specialist accounting positions can take longer. Allow additional time for software access, training and initial reviews.
Start Small and Build from There
For most Australian accounting practices, the best place to start is with the work that happens repeatedly and follows an established process.
Bookkeeping, reconciliations and workpaper preparation are good candidates. BAS, tax returns and more specialised work can follow once the offshore employee understands the firm’s standards.
The goal is not to move as much work offshore as possible. It is to give Australian accountants more time for the responsibilities that need their experience and judgement.
Intogreat helps practices recruit and manage dedicated offshore professionals who work within their existing systems and processes.
Explore how offshore accounting support can help your practice manage workloads, improve efficiency and give your local team more time for higher value client work.
