It’s no secret that businesses in Australia are struggling to find skilled staff. In fact, data from the National Skills Commission shows that labour shortages have nearly doubled from 2021 to 2022, with over 200 occupations dealing with shortages at a national level. 

Many businesses turn to skilled migration but, to bring people into Australia and sponsor them, is very expensive for any business. 

In Australia, more than 30,000 companies use offshoring as a way to solve the staff shortage. Offshoring is particularly popular in the accounting industry with firms–both big and small– turning to offshore talent to solve their staffing issues. The majority of these accounting firms find labour from the Philippines.

There is a HUGE demand for accounting professionals in Australia. CPA Australia's general manager of media and content Dr Jane Rennie even remarked that “vacant job listings for accounting professionals are up 34 per cent year-on-year. Thousands more accountants are needed yearly to make up the current shortfall.”

Moreover, Jobs and Skills Australia’s Internet Vacancy Index showed that the number of online job ads for accountants reached 43,224 from January to October 2022 alone. It’s safe to say that accounting firms and businesses are struggling to fill accounting and bookkeeping roles now more than ever. As such, Australian offshoring solutions from third-party companies have become one of the norms and a great solution to staffing shortages. 

There is a big difference between offshoring and outsourcing, which is very clear in the Accounting industry.

Offshoring is where a business uses a third-party company to find the right staff, manage the process, pay the staff wages, supply all the equipment needed (i.e. computers, headsets, etc), ensure all statutory requirements are met for each staff member and hold their hand through the process. You will take control and manage the staff on a day-to-day basis exactly like you would with Australian staff members.

Outsourcing uses a BPO provider to complete certain business activities. For example, you can send a set of financial statements and tax returns for preparation. The big difference here is that you have little or no involvement in how the job is performed so your workpapers won't be used and the BPO will process all the jobs in their format. You won't be able to make contact with the person doing your job as you do with an offshore team member (as outlined above). You effectively lose control over how the job is completed, the quality and other issues that may arise along the way. 

One of the biggest providers of offshore staff back to Australia is the Philippines. The offshoring industry helps over 1.2 million Filipino workers connect with international companies and help them solve their staffing issues. Companies enjoy numerous benefits from offshoring including…

• Lower operational and labour costs

Offshoring allows businesses to save up to 70% on operational and labour costs compared to that in Australia. It is highly cost-effective to hire offshore staff since the cost of living in the Philippines is much lower than in Australia.  

• Access to a global talent pool

Accounting in Australia is very similar to that of the Philippines. The Philippines adopt the same International Financial Reporting Standards (IFRS) and even have a more extended education length for an accounting degree than in Australia. They can also complete additional studies including CPA with the Philippine Institute of Certified Public Accountants. They also have minimum CPD requirements to meet similar standards as required in Australia 

There is also a large pool of talent with at least a Bachelor’s degree for roles like administration, marketing, IT and the like. All of this makes it easier to find educated and skilled staff members who can adapt to Australian businesses.

• More control over business operations

Companies prefer offshoring over outsourcing because it gives them more control over the staff and, in turn, their business operations. Rather than handing over work or per-hour projects to an outsourcing provider, offshoring lets you instruct and train your offshore staff which, in turn, gives you more control over the quality of the output. 

• Increased capacity

Because offshoring is cheaper and more efficient, you can easily grow your business’s team and increase its capacity. Partnering with a good provider like The Remote Accountant (TRA) can help you manage and retain your staff by ensuring they get the proper onboarding, training, IT support and employee benefits.

Finding skilled staff in Australia is becoming nearly impossible. As a result, businesses are loaded with work and are having a hard time getting things done. Offshoring helps your business get ahead and increase your capacity for growth. 

It’s best to act now than wait until your business is falling behind due to a lack of staff. Not only is offshoring an easy and more cost-effective solution, but it’s also a long-term investment that can help you scale your business effectively. 

If you're looking for staff and are keen to explore offshoring then get in touch with us at 1300 614 110 or email info@remoteacc.com.au 

We at TRA are experts in finding accountants for Australian businesses. We are a company headed by an accountant who is an FCPA and CA and an expert in the area of quality standards for accounting practices. Furthermore, he has an accounting practice that is manned predominantly by Filipino staff.

Given our industry knowledge and offshoring experience, we can help you find and train staff, as well as mentor you on how to successfully manage your remote team.