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Offshoring not always profitable
Offshoring work overseas (labour hire of offshore staff) frequently misses the practice efficiencies that Accounting firm owners are looking for. In the absence of having the right systems in places to take advantage of an offshore labour force, the back-office tasks performed offshore don’t necessarily have a positive effect on profitability, despite a lower labour cost.
Offshoring can be one option for businesses that have the time to manage offshore labour resources, taking time to train them, keep them busy, review their work, manage their career path, hire new staff when the old ones leave, and maintain the relationship with the offshore staff.
Outsourcing proves more profitable
On the other hand, outsourcing Australian compliance work overseas to an experience supplier normally comes with a lot of hidden benefits.
A good outsourcing provider has invested heavily in a client interface, which should contain at a bare minimum online communication, online queries, job % completion, automatic notifications of changes in status of work, and job costings/invoices.
Additionally, there should be a seamless offering, such that if any of the outsourcing staff (working on your jobs) are absent from work, then any other available staff can pick up the job and continue. It’s just good teamwork. A standardised methodology for preparing work is the basis for good compliance work, which together with client specific procedure registers so you can “have it your way”, provides a comprehensive quality job.
Just offshoring won’t make your firm more profitable if your systems, processes, training and other mission critical items aren’t there in the first place.
However, a good outsourcing company will have your back and have these things in place. And the likelihood is they’ll be all over new legislation, so the work prepared will be high quality.
Need help with your Australian compliance outsourcing? Drop us a line here at Odyssey