For Australian CPA firms, the current time is quite challenging. With a barrage of technological changes, regulatory updates, and ever-growing client demands, they find themselves at a crossroads. Navigating all these challenges can be overwhelming, especially if you lack the necessary resources or expertise to accomplish them. At the heart of all these challenges is the Business Activity Statement (BAS), a relatively simple form that can cause serious compliance issues and wasted time if not handled methodically.
However, the good thing here is that there is a solution to get rid of this entire burden and strengthen your CPA firm’s position, enabling you to focus on higher-value advisory services. This is where the BAS outsourcing services come in. By meticulously planning and embracing BAS outsourcing as a solution, you can easily transform your practice without worrying about staff shortage or any technological change. Let’s delve into the things you need to consider before filing your BAS and how outsourcing can be the perfect partner in this process.
Why Is BAS Outsourcing Such a Hot Topic Right Now?
The Australian tax landscape is undergoing a significant transformation, causing considerable compliance complexities for Australian CPA firms. The BAS is no exception. The BAS is an integral part of your client’s tax obligations, involving the reporting and payment of taxes such as Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and PAYG instalments. For many CPA firms, preparing and lodging the BAS is a resource- and time-intensive task, especially during peak tax season periods.
With BAS consuming a significant part of your everyday routine, doing repetitive tasks, your CPA firm can often hit a roadblock and consequently hinder your growth. According to a recent study published by Deloitte, nearly 75% of firms reported improved growth, flexibility, and scalability by utilizing outsourcing.Â
By partnering with BAS outsourcing service providers, these CPA firms were able to handle peak season volumes with absolute ease, without the need to overstaff. Outsourcing in current times is not only about cutting costs, but it is also about building a CPA practice that is resilient and agile.
Key Takeaway: Australian firms need BAS outsourcing to build a practice that is capable of withstanding peak season workloads and attain the desired growth trajectory.
What Are the Key Things To Consider Before Filing Your BAS?
Before you go ahead and submit the BAS forms for your clients, you need to make sure that all the details aligns with Australian Taxation Office (ATO) requirements. Here are some of the key things that you must consider before filing your BAS:
- Accurate Data Entry: The ATO compliance requirements are stringent and hence requires highest level of data accuracy. Even a small miscalculation can attract ATO queries or worse, penalties.
- Timely Reconciliation: You must ensure that every GST, PAYG withholding, and PAYG instalments match across systems.
- Updated Compliance Rules: BAS rules are ever evolving and changes frequently; missing even a small update can put your client at risk.
- Supporting Documentation: You need to properly organize every invoices, receipts, and payroll records.
Key Takeaway: Filing BAS is not only about adhering to ATO’s compliance requirements; it is about accuracy, timeliness, and safeguarding your clients against ATO penalties.
Why BAS Outsourcing Makes Compliance Easier for CPA Firms
For Australian CPA firms, BAS outsourcing is the most practical and efficient way to manage workloads without compromising compliance. By outsourcing your repetitive and labour-intensive tasks, your firm gains:
- Scalability: Outsourcing enables you to manage seasonal loads efficiently without overloading your staff.
- Cost Savings: Outsourcing helps you reduce overhead costs by allowing you to pay only for the services you need.
- Access to Expertise: Outsourcing service providers employ seasoned tax experts who are well-versed in the ever-evolving ATO rules, enabling you to gain access to specialized talent without incurring overhead costs.
- Reduced Errors: With specialists cross-checking your BAS entries, you gain the highest level of accuracy for your firm.
According to the Australian Taxation Office (ATO), nearly 70% of small businesses rely on tax professionals to help with BAS and GST obligations [ATO].
Key Takeaway: BAS outsourcing helps CPA firms lighten their compliance load, cut costs, and ensure that your firm remains competitive while avoiding any possible client dissatisfaction.
BAS Outsourcing vs In-House BAS Filing: Which Is More Efficient?
| Criteria | In-House BAS Filing | BAS Outsourcing |
|---|---|---|
| Time Efficiency | Staff spend hours reconciling data | Specialists streamline and finish faster |
| Compliance Updates | Requires staff training | Outsourcing experts stay updated automatically |
| Cost | Fixed overhead salaries | Pay-as-you-go pricing |
| Error Risk | Higher due to workload | Lower with cross-checking systems |
| Scalability | Limited during peak | Easily scalable during BAS season |
Key Takeaway:
In-house BAS filing does offer a great deal of control over filings, however, BAS outsourcing delivers efficiency, scalability, and error reduction, which makes it a lot more smarter option for the CPA firms.
How BAS Outsourcing Helps Manage Deadlines More Effectively
Meeting BAS deadlines is one of the biggest challenges that CPA firms face, and doing so without overburdening your staff is even harder. However, with BAS outsourcing, you can easily:
- Delegate your time and labour-intensive tasks and focus on delivering high-value client advisory services.
- Ensure that your clients’ BAS forms are reviewed and submitted on time.
- Avoid penalties from the ATO due to missed lodgements.
- According to CPA Australia, 25% of small businesses in Australia pay penalties each year due to late or incorrect BAS filings.
Key Takeaway: By outsourcing your BAS form preparation and submission, you eliminate deadline pressure, strengthening your clients’ trust and keeping your staff relaxed.
How Do You Choose the Right BAS Outsourcing Partner?
Not all accounting and bookkeeping service providers are equal. Thus, when considering BAS outsourcing, here are a few key points to look out for.
- Expertise in Australian BAS and ATO compliance.
- Data security protocols are in place to protect client information.
- Technology integration with accounting software (Xero, MYOB, QuickBooks).
- Flexible engagement models for seasonal or year-round support.
Key Takeaway: Selecting the right BAS outsourcing partner ensures that your firm obtains the desired expertise and infrastructure required to handle peak-season workload.
Conclusion: Scale Your CPA Firm with BAS Outsourcing
For CPA firms in Australia, BAS filing is not only a compliance necessity; it is also an opportunity for CPA firms to strengthen their clients’ trust by demonstrating the highest levels of reliability and efficiency. However, with the growing complexity of BAS filing and ever-evolving regulatory requirements, relying solely on in-house staff is no longer a sustainable approach.
With BAS Outsourcing, you gain the ability to save costs and lower risks of missing deadlines and inaccurate filings. Outsourcing allows you to free up time and deliver high-value client advisory services that can help your CPA firm grow.
Ready to future-proof your CPA firm? Write to us at marketing@datamaticsbpm.com today and see how outsourcing can transform the way you manage compliance.
