The Australian financial services landscape is undergoing tremendous transformation, thanks to the ever-evolving tax regulations, BAS lodgements, and the day-to-day chaos that comes with running a business. Add to that the daunting and time-consuming tasks that consume maximum bandwidth for small and medium-sized enterprises (SMEs) in Australia, and you are looking at a nightmarish business scenario. To keep up with the demand for transforming the business landscape, many modern Australian business owners are turning to outsourcing bookkeeping in Australia to maintain accurate and compliant financial tasks.
Whether you are a CPA firm, a tradie business in Brisbane, a boutique agency in Sydney, or an eCommerce store in Melbourne, outsourcing bookkeeping services can serve as a game-changer for you. In our latest blog, we take a closer look at some of the most common benefits of outsourced bookkeeping services for Australian SMEs—and why it’s one of the most innovative business moves today.
The Rise of Bookkeeping Outsourcing in Australia
For a long time, outsourcing has been one of the most effective growth levers for businesses of all types in Australia. Thus, outsourced bookkeeping services are no longer a trend but a strategic business move. According to IBISWorld, nearly 67% of SMEs in Australia have either outsourced some part of their finance and accounting function or plan to do so by 2025.Â
The rise of Cloud-based accounting and bookkeeping platforms, such as Xero, MYOB, and QuickBooks, has further increased the use of virtual bookkeeping, making it more accessible than ever.
Among the significant reasons contributing to the growing popularity of outsourcing are lower overhead costs and the ability to provide timely, accurate, and compliant financial reporting. Each of those factors is essential for a tightly regulated market like Australia.
Why Outsourcing Bookkeeping Matters for Australian SMEs?
SMEs in Australia are integral to the nation’s economy, employment, driving innovation, and economic growth. However, due to the ongoing transformation in the financial landscape of Australia a majority of SMEs are struggling to maintaining accurate financial records due to limited resources, evolving compliance regulations, and a lack of expertise. This is what has made outsourcing bookkeeping essential. It enables Australian SMEs to:
- Meet Australian Taxation Office (ATO) requirements
- Manage cash flow and expenses effectively
- Make informed business decisions
- Ensure long-term sustainability
While outsourcing does offer a plethora of benefits for Australian SMEs, here are the top 10 most significant benefits that we feel make outsourced bookkeeping for Australian SMEs such an exciting proposition:
1. Glaring Cost Savings
According to the Australian Small Business and Family Enterprise Ombudsman, over 45% of small businesses cite cost savings as their primary reason for outsourcing bookkeeping. Building an in-house team of bookkeepers invites fixed expenses in the form of salaries, superannuation, leave entitlements, training, and office space. In contrast, when you opt for outsourced bookkeeping services in Australia, you can easily bring down those expenses by up to 50% while gaining instant access to top-tier professionals without the hefty price tag.
2. Access to Qualified Bookkeeping Resources
Outsourced Bookkeeping for Australian SMEs provides them with instant access to certified bookkeepers who are well-versed in the latest ATO regulations, including BAS lodgements, Single Touch Payroll (STP), and SuperStream. As a result, you get accurate books that are always compliant and audit-ready.
3. Regained Focus on Core Business
As an SME, you are constantly looking for ways to grow your business, as opposed to just reconciling accounts or chasing receipts. By partnering with a proficient bookkeeping service provider, you gain the ability to focus on customer service, sales, and strategic planning instead of juggling between everyday admin work.
4. Real-Time Financial Insights with Cloud Bookkeeping
Modern outsourced bookkeeping services providers harness the power of advanced cloud-based platforms such as Xero, MYOB, and QuickBooks. It enables SMEs to access real-time financial data from anywhere. This enables SMEs to gain real-time financial insights, improved cash flow visibility, and forecasting.
5. Seamless BAS and GST Compliance
The Australian Taxation Office (ATO) adheres to strict timelines and reporting requirements. By partnering with an outsourced bookkeeping service provider, you gain timely BAS lodgement, accurate GST calculations, and full compliance—without worrying about the impending timelines and last-minute errors.
6. Scalability and Flexibility
Whether you are a start-up with minimal monthly transactions or a fast-growing eCommerce brand, outsourced bookkeeping services cater to all your bookkeeping needs. Outsourced bookkeeping service providers offer the ability to scale your services up or down based on business requirements and seasonal demands.
7. Reduced Errors and Improved Accuracy
In-house manual bookkeeping is always prone to errors. By partnering with a professional outsourced bookkeeping service provider, you gain the ability to harness the power of advanced automation, reconciliation tools, and double-review processes to deliver unmatched levels of accuracy in every transaction.
8. Stress-free payroll and Superannuation Management
For Australian SMEs, it can be daunting to keep up with all the Fair Work compliance, employee awards, superannuation deadlines, and Single Touch Payroll. However, by partnering with a qualified outsourced service provider, you gain the ability to manage all of this while ensuring 100% payroll compliance and happy staff.
9. Better Decision-Making with Accurate Reports
By maintaining accurate books, you obtain accurate financial statements, including real-time reports, balance sheets, profit and loss statements, and cash flow projections. All of this data empowers you to make data-driven decisions, which aids long-term business growth.
10. Data Security and Disaster Recovery
Data security and disaster recovery are of paramount importance for small to medium-sized enterprises (SMEs). However, safeguarding sensitive client information by introducing bank-level encryption, secure cloud backups, and multi-factor authentication can be expensive. However, by partnering with an outsourced bookkeeping service provider, you gain the ability to protect financial data and make it recoverable even in emergencies.
Conclusion
If you’re an Australian SME exploring ways to reduce overhead costs, streamline operations, and gain access to specialized talent, outsourcing is a smart way of doing so. Partnering with a proficient outsourced bookkeeping service provider will provide you real-time insights and enable you to save precious hours and achieve sustained growth.
As the Australian business landscape grows, you need every possible means to not only keep your business afloat, but also thrive. And if you’re looking for means to do so, write in to us at marketing@datamaticsbpm.com and we will help you focus on what matters most—growing your business.
Is outsourced bookkeeping suitable for small businesses with limited transactions?
Yes! Outsourced bookkeeping is highly scalable, making it ideal for startups, sole traders, and small businesses. You can start small and scale as you grow.
How does outsourced bookkeeping help with BAS and GST compliance in Australia?
Professional bookkeeping providers stay updated with ATO guidelines and ensure accurate GST reporting and on-time BAS lodgement, reducing your risk of penalties.
