Australian outsourced tax preparation outsourcing services can help public accounting firms of all sizes.
Most critically, it allows a match between the resource requirements of clients (on a job by job basis), to the resource supply of the accounting firm (which should be on a job by job basis).
Quite simply, the traditional Australian accounting model is based on a labour hire model, where labour in the form of an employee-employer relationship allows the firm to engage labour as a unit (i.e. a person) with training and other HR requirements, leading to possible capacity of the firm.
All of these are massive resource supply risks. What happens if the resource leaves (resigns), or isn’t available for some reason on the time when required. These supply risks exist regardless of whether the resource is hired onshore of offshore.
All of these are also resource supply limitations. Hiring one resource (onshore or offshore) allows you to have a fixed capacity. So for example, a SMSF resource can provide capacity of 100 SMSF’s per year, and can complete say 3 SMSF’s in a week, allowing for training, annual leave, public holidays etc. In order to have capacity for 30 SMSF’s a week, you need 10 employees (onshore or offshore). This assumes a constant flow of work, which rarely happens. The quiet time over Christmas usually has no work supply, hence onshore/offshore resources have been engaged which have no work.
A better model exists in outsourcing. Companies, such as Odyssey, have large capacity. Send over 100 Superfunds. They’ll all be back in under 2 weeks. Want it faster, not a problem.
No work coming in the door is an issue when engaging an outsourcing company. An outsourcing provider is only paid when work is performed. There are no fixed labour costs.
Australian accountants are currently, and have traditionally, been focused on labour supply to meet turnaround requirements for their clients. This is wrong!
The problem to solve should be one of how to make the work come more efficiently and in better quality from the client, rather than manage when you want the work to arrive, in order to meet your firm’s labour limitations.
Not sure how to engage an outsourcing company, talk to Odyssey today about how we can resolve half of your firm’s problems, and remove the labour resource shortage issues today!