Accounting Outsourcing: Some Considerable Aspects

Accounting outsourcing  is the latest trend in the accounting sector. But before you start analyse and get a clear-cut idea of the capital and the savings involved. When appointing an outsourcing service vendor, you must evaluate and compute your savings on overhead expenditures. At first, you need to determine the total cost, either you want to establish and manage an onshore or an in-house team of accountants. In your analysis, include staff allowances, supply, equipment, maintenance and development costs as well as other relative expenses for infrastructure, office zone, work force etc. in your computation. Along with these, analyze and estimate the expenses and perks you will be receiving by outsourcing your accounting tasks.

 

Accounting Outsourcing

Accounting Outsourcing

Here is a brief checklist:

Include non-fiscal gains of outsourcing during cost estimate. Draft all the benefits you will be getting on outsourcing.

Seek a reliable and legitimate outsourcing service provider. Look for the experience and skills you desire for assisting you in your accounting functions, plus, their fee and the services they provide. Consider all these aspects and then go for the appropriate outsourcing service provider that suits you best.

Look for a service provider who offers not one but a range of services. An accounting firm that provides many services is more proficient in dealing with more complicated accounting exercises.

Make sure that they retain a high quality level. Your accounting tasks should be outsourced to that outsourcing firm which maintains exceptional quality in work. This really helps in process management and providing your business a competitive edge.

Work with an accounting firm which offers enough security measures for the confidentiality of your company’s data. Their security standards must be at par with the industry standard and  constantly upgraded as well.

Review the work history and track record of the outsourcing firm. Look for firms that are experienced and have a number of happy clients that employ their services. Choose a firm that delivers work on promise of quality and time deadlines.

Connect Accounting, is an Australian firm, providing services to Australian Chartered Accountants for the past six years. Connect offers a wide range of accounting services, including annual financials, smsf audits, tax returns, work papers etc. Connect, works with commitment and delivers on promises.

Retain all these details in mind and select the not just the best, but the one that suits you the best.

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Trends in Australian Outsourcing

Australian outsourcing firms are attaining prestige in the market as they are efficiently balance out technical growth, cultural disparities, and employment trends among different sets of clients. Many Australian outsourcing companies have come up in the last few years as they understood the requirement for help in in running businesses.

 

Accounting Outsourcing

Connect Accounting Outsourcing

The answer to the demand and requirement of outsourcing is pretty simple- Earning higher profits with faster delivery, and professionally. Thus, quality, efficiency and capital are the key factors for the outsourcing business today.

In Australian outsourcing, the current trend is using cloud computing services in accomplishing almost any type of job online. Though this will likely create confusion among the general public regarding sis outsourcing and cloud computing. But the fact is, that both are one and the same. In outsourcing a single task is allocated to a virtual assistant, and in the case of cloud computing, the client employs an outsourcing team to do a range of tasks under single roof.

In Australian markets, as the competition rises, the outsourcing firms need to be better equipped to deliver speedy, high quality and innovative results with increased yields and resilience. Researchers and experts have estimated that in the coming years Australia tends to rise as one of the most competitive markets in the outsourcing industry, since they concentrate on delivering quality and critical business services.

The Australian outsourcing providers are concentrating more on relation based outsourcing from the locals firms. Relation based outsourcing refers to dealing with the clients with respect to account and sales queries, and other similar forms of data. The industry feels that such pattern of work is better within the country as it is more secure. The economic variations and the rising costs around the world are among the reasons for this trend.

Australia intends to clearly aim on high quality sales services for distinct business groups around the world. This can be accomplished from within Australia as they have a huge pool of IT professionals who will get an additional income along with their regular jobs.

Initially, outsourcing was treated as a low profile business that involved uneducated or lesser skilled workers working at low wages. But now the scenario has changed and so, the Australians now don’t mind working from home and earning a small or rather fair compensation without the daily hassles of a regular office job.

Today, since the mindset has changed to a very great length, the culture has also evolved to welcome people from other countries to work with and assist Australian businesses. Connect Accounting, a leading Finance and Accounting firm that stands amongst the best accounting outsourcing firms in Australia, caters to a vast range of accounting services including smsf audit, taxation, financial management and accounting outsourcing services. Thus expanding the demand and market for Australian outsourcing companies. The Australian outsourcing market, certainly will reach a boom, along with, great extent of innovative, productive and high standard jobs in the coming years.

Advantages of Outsourcing Accounting Services

Managing your business alone is a challenging task, regardless of being small or large, there are many aspects of business to be considered like productivity, efficient labor, client partnership, etc. Accounting is one of the most complex element of business that is given highest priority. It needs proper attention and is hard to calculate actual earnings, expenditure and profit or loss of a company. To manage the income generated in a proper manner the companies consider outsourcing as its best way. For this reason, it is always suggested to go for accounting outsourcing. Connect Accounting is one of the leading Australian Finance and Accounting firm which provides a vast range of services like smsf audit, taxation, financial management and accounting outsourcing services.

 

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Benefits of Outsourcing accounting services:

  • Certified accountants and skilled professionals outsource your accounting services. They have a huge level of expertise, skills and make use of high-end technology.
  • As financial data is always confidential, So a proper care is taken to ensure that all your accounting information is secured.
  • Accounting firms always follow the targets and deadlines. They collect the records and can provide, whenever you need it.
  • Due to high competition in accounting firms, keep all data upgraded with high-end technology. By outsourcing your accounting services, you will have an assurance that the service provider firm makes use of latest technology. High cost to upgrade your systems with latest technology is saved
  • Compared to employing your regular staff in business for accounting services, outsourcing can actually save a lot of money due to the reduction in salaries, training, infrastructure costs, recruitment, office space etc.
  • By outsourcing accounting services, your work is done by professionals in the field of accounting and you can also guarantee productivity and company’s performance.

Xero or Saasu

For the growth of a business, a clear vision of financial data is necessary for the business manager. For better understanding of their business operations at anytime, managers need to be equipped with concise, clear and up to date financial information of their business.

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Connect Accounting XERO or SAASU

 

There is a new term, Cloud Computing, evolving in the accounting field. IT is a general term for anything that involves delivering of hosted services over the Internet. Cloud computing enables businesses to be highly competitive in the industry. Through multi-user access, any user can access the data at any time using the Internet connection and can also provide invoices to the customers on the spot.

These cloud computing services are now available for small and medium business operations in Australia through the use of Xero and Saasu (Online accounting softwares). Connect Accounting, a leading Australian F&A firm, caters to a vast range of accounting services including smsf audit, taxation, financial management and accounting outsourcing services using cloud computing. These softwares can manage day to day bookkeeping of businesses, but they have some differences, which help in choosing suitable software for the business.

Xero and Saasu both have many features similar in terms of accounting for business transactions and competitive prices. Their reporting capabilities give end-users a wide range of printing options, file formats, and emails. The accounting software programs are accessible and readily available in a variety of currencies.

Xero

  • Xero (accounting software) is in high demand now a days among accountants and bookkeepers, as client’s information can be easilyaccessed at any time and location.
  • Xero has an all-inclusive payroll tool which enables the end user to manage employee obligations sufficiently through the creation of aba files intended for the bulk of employee payments, track employee entitlements, and execute automated super payment process.
  • Xero has the ability to easily integrate third party add-ons to increase system functionality.
  • Xero has an intuitive bank feed feature that matches payments against purchases and thus reduces bookkeeping costs and time.
  • Xero’s dashboard display can be customized allowing you to view the most significant financial aspects on the front page.
  • Xero provides item and service type invoice, allowing businesses to lay down details of their operations when necessary.

Saasu

  • Saasu (accounting software) allows the conversion of sales quotes into invoice. This software is extremely useful for businesses in the construction industry and for those that produce a large amount of sales quotes.
  • Saasu has strong focus over the inventory aspect of a business, allowing end users to send purchase orders to suppliers, which are tracked through the business’s inventory.
  • Saasu allows users to email large volumes of invoices, offering a customizable professional email template.
  • Saasu has the ability to easily integrate third party add-ons to increase system functionality.
  • Saasu also contains very flexible and customizable function to allow users, to create multiple budgets for distinct time frames.
  • Saasu is slightly cheaper when obtaining a monthly subscription form.

 

It is very clear that both Saasu and Xero offer different key features that depend upon the type of business you operate and the features you are looking for, in order to decide your accounting software.

Self managed Super Funds – A Retirement Solution

Finance is the backbone of every small and large business and so is the need to keep it strong and healthy. There are many strategies in the market associated with finance but SMSF is totally distinct and the best. Self managed super fund is based on strategic planning in the monetary field.

smsf outsourcing

smsf outsourcing

In the economic domain, worldwide, talking and dreaming about money is a bit scary and unsafe. Personnels are struggling to put their lives back on track and this commotion might lead you to lose what you already have in hand. Though, if you are willing to set up a smsf, you are just a few steps short. You are just required to have a mission and vision and then achieving them is all you need to do. The aim behind self managed super funds in Australia is to offer funds at the time of retirement without any discomfort with the present joys.

 For setting up your own smsf firm, you need to go through four basic steps.

  • Trust Building – Building trust of the people around you is the first and foremost step. This process will be as easy as a cakewalk if you are sincere and reliable.

  • Tax file and business Number – You need to have a tax file number and an Australian business number.

  • Critical Outline – In order to start a smsf firm you ought to have a critical planning in your mind. This is essential to ensure a steady journey.

  • Bank Account – The last but not the least, you will require a bank account for smsf.

Connect Accounting, Australia is a firm well known for its accounting and smsf outsourcing services. Connect Accounting provides competitive solutions for you to have a complete hold over your finances along with having a stable future. Smsf endeavors to provide you a sound financial control and security.

Importance of Finance and Accounting Outsourcing for Small and New Businesses

In today’s competitive business climate, finance departments are constantly under pressure for balancing costs with benefits in every key decision. Especially for small and new businesses, this task is very time consuming and expensive as well. The option these firms have is to either hire the qualified staff and resources or get it done by outsourcing, which is sure a smart move.

The outsourced firm can handle various accounting tasks ranging from bookkeeping, accounts receivable, accounts payable, general accounting, management reporting, and other major F&A functions, that too with excellence. They provide services, on as-needed or hourly basis, or quick and immediate expertise. That means you get a high quality expert’s solutions, without hiring one full time. Plus, you can spend all your time and efforts into what you are best at.

Finance and Accounting Outsourcing

Finance and Accounting Outsourcing

Here are some of the key roles of Finance and Accounting you can get outsourced,

1. Bookkeeping Services: Bookkeeping is the activity of keeping records of the financial affairs of the company and a professional bookkeeper is mandatory for your business firm. It can be a stressful task for a new business trying to stay on top of their finances and establish a business at the same time, so using an expert bookkeeping service is essential for the financial health of your business.

2. Account Reconciliation: Account reconciliation is the act of confirming that the balance in one’s checkbook matches the corresponding bank statement. You can well understand that how important it is to ensure a correct method for account reconciliation.

3. Financial Statements: The outsourced firms understand the value of proper financial reporting. They create, interpret and work along with you and assist you in maintaining and improving your business growth.

4. Payroll Services: For the Payroll services you just need to input some data then using the Payroll service, the outsourcers directs the deposit of employee paychecks, employee login of pay stub information and electronic payment of Taxes etc.

5. Accounts Payable & Receivable: In Accounts Payable, your businesses might be having multiple vendors for various company related expenses. A well skilled team of accountants will manage them all, with correctness and expertise.

Connect Accounting incorporates SMSF Outsourcing fulfilling these needs by carrying out important accounting tasks for the businesses. In this way, the businesses do not require to hire new accountants from outside. All you need to do is, provide the source documents, like bank reconciliations, revenue, expenses, payroll, inventory etc. The rest of the job is done by the proficient accountants and they also make sure that your tax paper work, bookkeeping, month-end reporting, year-end reporting etc. everything get completed on time and in an efficient & accurate manner.

The Ups and Downs of Outsourcing for Small Businesses

The process of allocating the business processes to the outside firms is known by the term Business Outsourcing. Almost all the services ranging from legal, accounting, bookkeeping services to customer support and IT services, can be easily and efficiently outsourced and is fast becoming a business standard.
With the privilege of internet and progressive communication means, the sharing of confidential documents, data banks etc is as easy as within the office walls. For examples in case of company’s accounting tasks, one can easily get their accounting, smsf auditing, bookkeeping etc from an offshore company with the ease like that of full time staff with lesser overheads.

The Ups of Business Outsourcing:-
Outsourcing presents lots of advantages, both to the business and its employees. It is considered to be a highly efficient way to harvest the best talents available in the market on an as needed basis. Some other highlights of outsourcing are:

Staffing Control – Small businesses often face the dilemma of shortage of quality staff. People come and go, seeking quick growth. The companies put in their quality resources to train the hired staff, and later the employees set for bigger firms, taking with them their newly gained knowledge and experience. Thus, instead of constant recruitments and training sessions companies can save a lot of their time and resources by outsourcing their tasks to other firms, without hiring a full time staff.

Economically Feasible – Outsourcing largely reduces the need of in house staff especially for Accounting Outsourcing, bookkeeping and auditing services. The companies get the flexibility to hire experts for months and years yet they can pay them on as needed basis, without incurring any in house management and upliftment expenses.

Focus on Competencies – Outsourcing is a great option for small businesses who cannot afford to hire experts full time. Hiring experts through outsourcing is like transferring the headache to the contractor and focusing on other key business tasks.

The Downs of Business Outsourcing:-
Despite all the advantages mentioned above, there might be a few drawbacks of Outsourcing business tasks to external staff. Here are a few,

Confidentiality and Privacy Threat – In the process of outsourcing business tasks, a company needs to provide the outsourcing firm access to company’s confidential data. Although confidentiality agreements are signed off before such a partnership, but there is always a threat to misuse of classified data in the era of gadgets and internet.

Dependence – Outsourcing Accounting Work also involves transmitting functional uncertainties to the outsourcing contractor as when a company hands over business tasks to another contractor, they are dependent on the contractor’s business tactics, integrity and faith.

Divided Loyalty – Outsourcing firms generally work with many clients, and that may include competitors in the same trade, thus their sincerity may be an concern. They have all the means to leak information etc, or maybe something like inaccuracy or late compliance of their tasks.

In order to get the best out of business outsourcing, a company needs to determine the right tasks and business operations that are appropriate for outsourcing as well as to know how to properly select contractors.

MYOB versus Xero

MYOB vs Xero

MYOB vs Xero

 

With the arrival of cloud-based accounting systems, MYOB’s long supremacy has been challenged but choosing a suitable provider for your business comes down to more than price.

Every provider looks better than the other and it’s difficult to choose one. The leading competitors in the Australian market are MYOB, Xero, Quickbooks, Reckon and Saasu.

Selecting an accounting system is imperative yet a perplexing decision for new ventures, especially as the players aim to attract start-ups with free demos that can be converted into paid ones in future.

The outstanding performance of Xero shares depicts the significant change that cloud-based accounting and bookkeeping is bringing to our accounting practices. Xero is leading the way when it comes to ease of usability on smart-phones and tablets. But most providers usually recommend a range of systems to the clients based on their needs, as the Xero product on its own would not be sufficient. It may need some add-ons, like those included in MYOB.

A more hybrid model is provided by MYOB. Some businesses may sync it and choose to use it offline as per their requirement which is not possible with a cloud based solutions.

SMSF trustees paddle up the SuperStream

The trustees of more than 130,000 self-managed super funds will be receiving a letter from the ATO about their new electronic reporting obligations. The letter will tell the trustees they must ensure their fund complies with a new government reform – which applies to them from July 1, 2014 – aimed at improving the efficiency of the superannuation system.

Australian Taxation Office

Australian Taxation Office

This new data and e-commerce standard, called SuperStream, was a byproduct of the Cooper review into superannuation and was one of the measures in the Stronger Super reform package released by the then Labor government.

The reforms were designed to improve the administration of superannuation funds and included:

New data and e-commerce standards for super transactions.

The use of tax file numbers for members as the primary locator for members’ accounts.

Allowing for superannuation account consolidation.

Improved treatment of super contributions where there are insufficient member details.

The establishment of a body to advise the government on the implementation and maintenance of superannuation changes in standards.

This last measure became known as the Superannuation Guardians and has since been scrapped. Another reform scrapped by the Abbott government was a register to be maintained by the ATO of validated SMSF bank accounts. The reason for this having been scrapped is a mystery as it would have made it easier for super funds to establish that a bank account belonged to a complying SMSF and resulted in faster rollovers of members’ superannuation.

At the heart of the SuperStream system is a standard set of minimum conditions for the electronic transmission of superannuation data and payments. In all, there are five standards: business terms and conditions; data message formats; requirements for the communication and security of messages; electronic payments; and verification services.

The new system is being introduced in two stages. Super funds with members who work for a large or medium-size entity – defined as employing 20 or more people – must meet the new data and e-commerce standard from July 1, 2014. All other superannuation funds must comply from July 1, 2015.

To comply, members of an SMSF who are employed by a large or medium-size entity must update their superannuation details with their employer by May 31, 2014. In addition to providing their ABN and bank details, SMSFs must ensure they have signed up with a provider that allows for the electronic transfer of the super contribution and data.

Trustees of SMSFs who use an administration service, or an accountant who processes their superannuation fund’s accounts using a software package, should not have to do anything as the electronic service address for receipt of a contribution data message will be provided to them.

For those SMSF trustees not provided with the required data and e-commerce information, there are several alternatives. Some financial institutions will provide an electronic messaging service that meets the requirements for SMSFs that use their accounts.

One option for SMSF trustees will be an Australia Post service that ensures trustees can comply with the SuperStream data standards. This will cost $25 in the first year and $50 from June 2015.

ASIC finds no New Daily, super fund conflict

The corporate regulator has found no immediate signs of conflict of interest in relation to the investment of $3 million of members’ money by three industry superannuation funds in media start-up The New Daily.

Late last year, during a Senate Estimates Committee hearing, Nationals Senator John Williams raised the issue over AustralianSuper, Cbus and Industry Super Holdings’ investment in the online publication.

Williams questioned the use of member funds in a media investment and asked ASIC chair Greg Medcraft to examine the situation for possible conflict of interest concerns.

Medcraft opted to take the question on notice. ASIC provided answers to Williams’ questions in a written statement last month.

“As we do with other advertising generally, we will monitor the potential for content and editorial bias on superannuation reporting,”

ASIC said in the statement. “ASIC reviews the communications strategies of super funds to their members … we also review this content to consider whether it is misleading.”

The types of member communication ASIC had reviewed from other funds included websites, e-learning, calculators, seminars, blogs and newsletters, he said.

“In regards to advertising on The New Daily, we note that currently all advertisements are for Cbus, AustralianSuper and ME Bank,” he said.

“The articles currently on the site appear to be neutral and are not biased towards the interests of the industry superannuation sector.

“As such, the concerns in relation to conflict of interest are currently not readily apparent. The majority of superannuation articles appear to be focused on general superannuation education or general discussion regarding changes occurring in the superannuation space.”

ASIC had worked closely with the Australian Prudential Regulation Authority (APRA) on the issue of the appropriateness of funding the site, he said.

“Our understanding is that APRA has made inquiries about the nature of the funding to determine whether this funding is in keeping with the spirit of, and covered under, the sole purpose test as set out in section 62 of the Superannuation Industry (Supervision) Act 1993,” he said.