June 8, 2016
Australian accountants outsourcing draws criticism
Australian accountants are increasingly outsourcing some of their back office work to cheaper countries like the Philippines and so boosting their profit margins in return. However, not everyone in Australia is happy with this, including those accounting firms that do not use offshore staff despite the considerable cost savings on offer. Outsourcing a large proportion of accounting operations is legal in Australia, but many clients do not know that their accounting firm uses the practice. Amanda Newtown of Melbourne’s Negotiis Business Advisors and Accountants is among those that disapprove of the practice. She said offshoring is a short-term race and undermines the overall sustainability of Australia’s economy by taking away local jobs. In contrast, Lee Court of BOSS (Back Office Shared Services) believes using offshore accountancy staff is a legal way for accountancy firms to dramatically boost their profit margins. With both top-tier accounting companies and sole practitioners using BOSS to access overseas staff, Court contends that the demand has been high since BOSS began trading in 2004.