Outsourcing your Australian compliance work to overseas is an important undertaking. If done properly, it can greatly improve the way you do accounting business and give you a more competitive advantage. With the time, money, and resources you will invest, you need to ensure that you get your money’s worth.
Let’s quick go through the checklist below to choose the best outsourcing model would work efficiently for your accounting business.
Ad-hoc model works on a “job by job” basis, and this is where most Australian accounting firms start when they are ready to dip their toes in the outsourcing water.
The ad-hoc outsourcing service enables you to access remote assistance whenever the need occurs. At times when you have peaks in your workload, this outsourcing model can take your pressure off. And when you’re not busy, there is no need to worry about the cost of carrying surplus employees. The main benefit of this model is that it is a switch off-switch on when needed.
The main advantage to this model is you can “try before you buy” when the outsourcing firm also offers the ability to transition from ad-hoc to full time. This also gives the outsourcing services provider the ability to learn your business, then pick the best resource for your firm based on your work mix.
|Comments||Points to note|
|✔ Cost effective|
✔ Flexibility of job by job
✔ Outsourcing provider responsible for work quality
✔ No training is required. This is the responsibility of the outsourcing provider.
✔ Forex risk usually with the outsourcing provider.
✔ Guarantees of confidentiality
|× Takes time to do a decent due diligence and find an experienced Quality outsourcing provider|
The dedicated resource model mean that you will need to hire an outsourcing provider to which can provides the office environment, set-up, management, and all facilities required for your offshore team to work. Then, they will help you recruit an offshore team or staff.
|Comments||Points to Note|
|✔ Cost effective|
|× Take time to train an offshore team/staff (6 months to 18 months)|
× Issues with staff turnover
× Need to ensure a commitment on work quality, which is usually absent from the off-shore models
× Hidden costs (finder fee, visiting for training, inhouse resources needed to train/review work,
× Language barriers a concern as you pay for hours, and not jobs.
Sometimes you will need help with specific project or job, but don’t need full-time help. This outsourcing model may come in handy to outsource a project rather than hire an in-house or temporary employee.
|Pros||Points to Note|
|✔ Commitment on work quality|
✔ Over run on costs risk is borne by the outsourcing provider
✔ Low risks on quality
|× Usually requires a bit more “up front” analysis and negotiation to ensure the correct tasks are identified and agree. The outsourcing provider usually has experience in this.|
× Works best with work that can be easily identified, such as SMSF administration, SMSF audit, data conversions.
So, which models is suitable for your accounting business?
Odyssey provides to our Australian accounting client base all 3 of the main outsourcing models: Ad-hoc, Fixed-Resources, Fixed-Job.
And we’ve found that clients like to engage our SMSF work on fixed rates when they can commit to sending all their work over. They also engage fixed resources to cover part of their tax work, and engage ad-hoc resources to manage the peaks.
If you want to chat more about which outsourcing model can work best for your business, then drop Odyssey a line and we’ll show you how Outsourcing your compliance work can assist.