Outsourcing for Accountants and Australian Business owners

 In the same week I wrote “An Entrepreneur’s take on the 2014 Budget” article I met a very interesting Accountant in the Gold Coast by the name of Nicholas Sinclair from www.wealthfarm.com.au.

In the above Budget article I talked about the challenges faced by 18-23 year olds in finding work because of high wages and employers reluctance to hire them because of perceived lack of value and ROI.  Combined with the fact that older workers are staying in the work force longer and with the retirement age being lifted to 70 this is not going to improve anytime soon.

Accountants taking the bull by the horns

Nicholas has taken the bull by the horns and hired some accountants from the Philippines to help him grow his business.  The good news is that as he hires more offshore staff he also hires more local members on the Gold Coast too and now has created 25 local jobs – not bad for a guy just over 30!

Nicholas Sinclair, Wealthfarm

Key points on Australian businesses outsourcing

1. Labour is becoming more international, the world is flatter meaning it is easier to do business overseas.
2. Overseas labour generally costs AUD$5-8 per hour.
3. You need good systems for it to work well.
4. Cutting the cost of compliance work is being used to attract new clients. The fee shortfall is recovered by providing added value services. The effect is that the fee per client actually goes up, not down.
5. Everything is becoming paperless as more day to day business processes such as payroll are done in the cloud – like SmartPayroll !

Outsourcing may or may not be for you but it is a big trend right now and if it means your business might have a better chance of surviving and growing and continuing to provide benefit to the Australian economy then it’s got to be a good thing.