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Revealing Findings about Accounting Outsourcing in the Good Bad Ugly Report

Business Fitness will be making the full 2014 Good Bad Ugly report available from Monday 24th November 2014.

What is interesting in the report is the use of accounting outsourcing providers.

Over 75% of firms that use outsourcing providers state that outsourcing is profitable. The number of firms using outsourcing providers is set to grow from 30% to almost 39% in the next 12 months. The drivers for many are to enable their firm to transition into providing more advisory services and also to maintain a competitive advantage as compliance fees are under pressure.

In the Good Bad Ugly report it is stated that there are two types of accounting outsourcing model:

  • Staff leasing
  • Full outsourcing
Revealing Findings about Accounting Outsourcing in the Good Bad Ugly Report

Typically staff leasing is where the outsourcing provider just provides a desk, computer and a raw accountant, usually with no training in Australian tax laws or software. (Some providers do provide some training but it is at a basic level). Staff leasing does allow for the outsourced accountant to follow your procedures and working papers.

Full outsourcing is where the accounting outsourcing firm takes care of the complete HR and recruitment aspects, continuous training on Australian tax law, work papers and procedures (if required), and provides continuous support to get work done with the minimum of fuss; allowing the Australian accounting practice to just load up jobs.

BOSS is fairly unique in that we actually provide the best of both worlds: all the training and support of full outsourcing and the flexibility of having a dedicated accountant that can follow your procedures and working papers. (We even provide the option of having jobs reviewed so that they are ready for Partner level review and sign-off.)

BOSS notes that:

With the staff leasing model there may be the perception of cost savings but the reality can be that the savings become negligible with the added burden and problems with this arrangement.

Trying to recruit personnel, train staff on an ongoing basis to a high standard, monitor them and comply with APESB and TPB guidelines on outsourcing is no easy feat. In addition you may need to provide software licenses or have connectivity issues if you are not using cloud software.

There are firms who have tried the staff leasing model and are now moving to the full outsourcing model to make outsourcing work better for them.

The Good Bad Ugly Executive Summary and full report can be downloaded from the Business Fitness website here

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