How An Outsourced Accountant Will Grow Your Business
hiring the services of an outsourced accountant has become a popular trend in recent years as businesses look for ways to reduce costs and focus on their core competencies. Outsourced accounting services can help businesses of all sizes streamline their financial operations and achieve greater financial stability.
In this article we will discuss the benefits of outsourcing accounting services, the role of an outsourced accountant, and why outsourcing can be a great strategic move for your business.
What are Outsourced Accounting Services?
Outsourced accounting services refer to the practice of hiring a third-party company like Allevi8HQ or an individual to manage your financial operations.
Outsourced accounting services can include bookkeeping, payroll processing, tax preparation, financial reporting, and other accounting-related tasks. The goal of outsourcing accounting services is to save yourself time and money while ensuring accurate and timely financial reporting.
You could outsource each activity to a separate provider (ie, one provider for payroll, another for bookkeeping) but it makes good business sense to find one accountant who can provide you all of these accounting services plus additional features like advisory services if you need them.
The Role of an Outsourced Accountant
An outsourced accountant is a professional who provides accounting services to businesses on a contract basis. Outsourced accountants typically have extensive experience in accounting and finance and are able to provide a range of services to businesses of all sizes.
Some of the key tasks performed by outsourced accountants include:
Bookkeeping: Outsourced bookkeeping can help businesses manage their financial records and ensure accuracy in their bookkeeping.
Financial Reporting: Preparation and analysis of financial statements, including balance sheets, income statements and cash flow statements.
Tax Preparation: Preparation and filing of tax returns for businesses ensuring compliance with the Australian Tax Office.
Payroll Processing: Payroll management, including calculating employee wages, preparing payroll tax returns and issuing paychecks.
Benefits of Outsourcing Accounting Services
Cost Savings: Outsourcing accounting services can help businesses save money by reducing the need for full-time staff and expensive software and equipment.
Access to Expertise: Get access to extensive experience in accounting and finance as well as valuable business insights.
Improved Accuracy: Avoid errors and ensure accurate financial reporting, which is essential for compliance and decision-making.
Time Savings: Free up time to focus on your businesses and activities that drive growth.
Scalability: Outsourcing accounting services can be scaled up or down depending on the needs of the business, making it a flexible and cost-effective option for businesses of all sizes.
Reduced Risk: Mitigate risks by ensuring compliance with tax laws and regulations.
Do Companies Have To Pay GST On Outsourcing?
The application of Goods and Services Tax (GST) on outsourcing services can be complex and depends on a number of factors.
Generally speaking, businesses that outsource services to an Australian supplier will be required to pay GST on the services received, just as they would for any other locally supplied goods or services.
The Australian Taxation Office (ATO) considers outsourcing to be a taxable supply of services if the services are provided to an Australian resident and the supplier is registered for GST. In this case, the supplier would be required to charge GST on the services provided, and the recipient of the services would be required to pay the GST charged by the supplier.
If the recipient of the outsourced services is registered for GST and the services are acquired for business activities, it may be entitled to claim a GST credit. Iif the outsourcing service is provided by an overseas supplier, different GST rules may apply.
Full-time Hire vs Outsourced Accounting Services: Which one is better for you?
Determining whether outsourcing or hiring accounting services in-house is better for your business will depend on a variety of factors, including your business needs, budget and resources.
Here are two key factors to consider when deciding between outsourcing or hiring in-house:
Cost: One of the most significant factors to consider when deciding between outsourcing or hiring in-house is the cost. Outsourcing accounting services can often be more cost-effective than hiring in-house, as you won’t need to pay for benefits, office space or equipment. With the current skilled labour shortage in Australia (especially in accounting) this is a very significant cost to take on internally.
On the other hand, larger companies that usually have a high volume of accounting may find it more cost-effective to hire in-house rather than pay for outsourced services.
Expertise: Outsourced accounting services can provide businesses with access to a wide range of expertise and knowledge that may not be available in-house. You’ll also have access to a team of knowledge rather than just the one accountant that you hire.
Outsourcing can be particularly beneficial for businesses that need specialised accounting services such as tax planning or financial analysis and advisory services.
Outsourcing Will ALLEVI8 The Pain
When you outsource your accounting services to Allevi8HQ you’ll get expert bookkeeping, BAS, tax, payroll and accounting services that take care of all the financial aspects of your business for you.
We can further support you with a wide range of business advisory and exit planning services. Chat to us today about an outsourced solution.
