Outsourcing has become a rising point of conversation within the Australian accounting industry that most firm owners have thought about engaging in. The gap between considering it and committing to it usually comes down to the same handful of questions. Questions about data, quality, control, and whether it’s actually worth the disruption of changing how the team works.

Jump to: 

• Is client data actually safe?
• Will the work hold up to the same standard?
• How much control do we keep?
• What about communication and time zones?
• Is it better for our budget?
• What happens during the busy season?

Left unanswered, these questions tend to just keep outsourcing on the maybe next year list indefinitely, while the firm keeps absorbing the cost of doing everything in-house. The rising cost of overtime during busy seasons, the time spent recruiting and training for roles that are hard to fill, and capacity that feels strain right when client demand peaks can add to overheads. We’re here to provide answers to some of the more common questions accountants may ask when considering partnering with an outsourcing partner.

Is client data actually safe?

This is almost always the first question and is usually the one thing standing between a firm actually giving outsourcing a go. Under the Privacy Act and the APES 110 Code of Ethics, responsibility for client data stays with your firm no matter where the work is done, so the goal is to know exactly what to ask so all bases are covered before you get started.

• Ask how access to client files is controlled, and by whom. An outsourcing partner should be able to name exactly who can see what, and why
• Confirm company policies and privacy agreements and if those align with your firm’s own policy
• Keep an access log or a record of who touched a file and when, that you can review if you ever need to.

Will the work hold up to the same standard?

Making sure the quality of your work holds up to the same standards entails asking the right questions and being aware of the partner you choose to engage with. Quality comes from training, review layers, and familiarity with the exact software and standards your firm runs on. Some outsourcing partners build in multiple checks before work reaches you while others don’t, and that’s important to know upfront instead of finding out the hard way. Before committing to anything, you can begin by testing the arrangement with a small, low-stakes job first. 

A single business activity statement (BAS) or a handful of tax returns is a great place to begin. Ask your outsourced partner what the review process looks like before work reaches your desk. Is there one reviewer, or several? Do they have any tips on how to crosscheck the work once it’s done? Confirm which software and versions the team is trained on, so there’s no mismatch on day one. Keep in-house reviews as a non-negotiable step.

How much control do we keep?

The control that your firm keeps is ultimately up to you as each provider tailors their approach to your workload based on your needs. Your firm has the opportunity to set the standards, review the output, and keep sign-off, while the outsourced team works inside your existing processes instead of replacing them. To keep visibility as the arrangement grows:

• Start by handing over the tasks that need the most attention first, and move to bigger ones as trust builds
• Keep a single point of contact on your side who owns the relationship, so oversight doesn’t get handed-off across the team which could dilute the process
• Revisit the arrangement every few months, particularly if volume increases. What worked for ten jobs a month may need adjusting at fifty.

What about communication and time zones?

The overlap between Australian business hours and overseas outsourcing hubs is more advantageous than most firms expect. A defining factor that sets overseas outsourcing apart is that the work can progress overnight and be ready for review the next morning. 

Agree on a communication channel upfront. Email, Slack, Microsoft Teams, or a client management tool like Karbon. Some providers may have their own platform which they can help guide you through if it’s your first time using a new portal. Ask about their expectations for response times on both sides, the same way you would with a new staff member. Decide if you prefer a dedicated team like a podsourcing option or single outsource partner to keep your workflow streamlined.

Is it better for our budget?

Compliance work typically costs less to outsource than to staff locally, often by a significant margin depending on the role. But the full comparison needs to account for more than the hourly or packaged rate:

• Factor in onboarding time, particularly in the first three to six months while processes are worked into your firm
• Account for the time spent reviewing work, and how that will factor into your everyday workload
• Compare it against the real cost of hiring locally for the same role. Recruitment, training, annual and sick leave, and the risk of staff turnover are all factors to consider when weighing up how pricing can impact your overheads.

What happens during the busy season?

This is where outsourcing tends to bring the most value to Australian firms. Being able to expand your capacity for tax time or the end of financial year (EOFY) without hiring and training temporary local staff solves a genuine bottleneck for a lot of firms. 

Outsourcing isn’t an overnight fix if a backlog has already built up, as onboarding a team takes some time. Agree on peak-season volume in advance, elevating the firm’s capacity when you need it so your firm can hand-off tasks as they arise. Use the quieter months to test and refine the process, so the busy season isn’t the first real stress test. Partnering with a provider can help ease stress during tax-time. The key is to establish a strong relationship during the off-season so the partnership is working smoothly before work picks up.