Offshore accounting services let an Australian firm send defined work, such as tax return preparation, workpapers and compliance schedules, to a qualified team overseas. Your firm reviews the work, keeps the client relationship and stays responsible for the result. This guide covers what can go offshore, how the process works, real costs, data security and tax agent obligations.
Most firms look at
outsourced accounting services because capacity, not demand, limits their growth. Deadlines bunch together, experienced staff are hard to find, and routine preparation crowds out advisory work. An offshore team gives you extra capacity without another local hire, provided the arrangement is set up properly. The sections below show what “properly” means in practice.
What It Covers
Firms usually send offshore the repeatable, document-driven work that follows a clear process and has a defined review point.
Work that commonly goes offshore
- Individual and business entity tax return preparation
- Tax workpapers, reconciliations and depreciation schedules
- Division 7A and loan repayment calculations
- Fringe benefits tax returns
- BAS and IAS preparation
- SMSF administration and audit back-office support
Work that stays with your firm
- Client advice and the client relationship
- Engagement terms, fees and scope decisions
- Final review, sign-off and lodgment
- Correspondence with the ATO and the Tax Practitioners Board
- Judgement calls on complex or unusual tax positions
- Collecting client consent for offshore handling
How It Works
- Agree scope : You and the provider confirm the work types, expected volumes, lodgment dates and the software access required.
- Set up access and templates : The team works inside your existing platforms, such as Xero, MYOB or CCH [Confirm: software list], following your templates, naming conventions and review notes.
- Hand over client records : Documents move through a secure portal, not email. The provider confirms what has been received and flags anything missing.
- Offshore preparation : The team prepares the return and workpapers. Queries are collected in a single list, so your reviewer can answer them together.
- Firm review : Your reviewer checks the draft, resolves queries and requests changes. Early on, expect more review time while the team learns your preferences.
- Sign-off and lodgment : Your firm approves the work and lodges it. The client sees one firm throughout.
Most firms start with a single return type or client group and widen the scope once handover and review run smoothly.
Real Costs
A fair comparison covers the full cost of a local employee against the full cost of an offshore arrangement. Comparing a salary to a rate card misses most of the picture.
What a local hire costs beyond salary
- Superannuation, leave and payroll tax
- Recruitment fees and time to fill the role
- Training and supervision time
- Software licences, hardware and office space
- Lost capacity while the role is vacant or the person is ramping up
- Replacement cost when someone leaves
What offshore arrangements cost beyond the fee
- Your reviewers’ time, especially in the first few months
- Rework when instructions or templates are unclear
- Setup effort, such as access, templates and checklists
- Time-zone handover delays on urgent items
- Updates to client engagement letters and your privacy documents
- A check that your professional indemnity policy covers outsourced work
How to compare
Work out the cost per completed return, not per hour. For each option, add the full yearly cost, including the items above, then divide by the number of returns completed at the review standard. Include review time on both sides of the comparison. Firms that skip the review-time line tend to overestimate their savings.
Pricing structures differ. Some providers charge per job, some by the hour, and some offer part-time or full-time dedicated staff. Pay-per-job suits seasonal peaks and backlogs, while dedicated staff suits steady year-round volume. Ask each provider for a written quote that states what is and isn’t included.
Data Security
Tax returns hold identity details, bank information and financial records, so how an offshore team handles data matters as much as the quality of its work.
What good practice looks like
- Documents move through a secure portal with access controls, not through email attachments
- Access is limited to the people assigned to your account and removed when they leave
- Data is encrypted in transit and at rest
- Activity is logged, so you can see who accessed what and when
- Work happens inside your own systems where possible, so records stay with you
- Data is returned or deleted when the arrangement ends
Questions to ask any provider
- Where is client data stored, and who can access it?
- Do staff work on managed devices, and can they download or print client files?
- Do you hold an independent security certification, such as ISO 27001? Ask for the current certificate and check which edition it covers. [Confirm: SuperRecords’ current certificate]
- How are staff screened, trained and supervised?
- What happens if there is a data breach, and how quickly will you tell us?
- What happens to our data if the engagement ends?
- Do you use subcontractors, and are they bound by the same terms?
Tax Agent Responsibilities
Using an offshore team doesn’t move your obligations to it. Under the Tax Practitioners Board (TPB) guidance on outsourcing and offshoring, TPB (GS) 31/2018, registered tax practitioners carry the due diligence burden. Where the work is done by an unregistered third party, the practitioner remains ultimately responsible for its quality.
Supervision and quality. Work by an unregistered offshore team must be under your supervision and control. The TPB expects supervision that matches the nature and extent of the work, and checking documents alone is not enough. You need review points, a way to assess competence and clear escalation steps.
Client confidentiality and consent. Under the Code of Professional Conduct in the Tax Agent Services Act 2009, you must not disclose client information to a third party without the client’s permission or a legal duty. The TPB treats an offshore provider and cloud storage as a third party. Tell clients who will receive their information and where. Get a clear opt-in, such as a signed engagement letter clause, and don’t suggest that all work is done in Australia if it isn’t.
Privacy law. Under Australian Privacy Principle 8 and section 16C of the Privacy Act 1988, an entity that discloses personal information overseas must take reasonable steps to make sure the recipient handles it consistently with the Australian Privacy Principles. In most cases, if the overseas recipient breaches those principles, the Australian entity is treated as having breached them too. An enforceable contract with the provider is the usual starting point.
Insurance and records. Check that your professional indemnity policy covers outsourced and offshore work. Keep records of the arrangement, including the scope, supervision steps, client consents and the provider’s security terms.
Consequences. Inadequate arrangements can breach the Code of Professional Conduct. The TPB can respond with a written caution, an order, suspension or cancellation of registration.
This is a general summary, not legal advice. Confirm your position against the current TPB guidance and speak to your professional body or a legal adviser if you are unsure.
Choosing a Provider
Use this checklist when comparing offshore providers for overseas accounting services or offshore taxation services.
What to look for
- Experience with Australian tax law, ATO processes and your software
- A clear review and quality assurance process before work comes back to you
- Written security terms and a certification you can verify
- Willingness to work inside your platforms and follow your templates
- Flexible engagement options, so you can scale up or down
- References from Australian accounting firms of a similar size
- Clear answers on who will do your work, and how that team is trained
Red flags
- Vague answers on where data is stored or who can access it
- No written process for queries, review or corrections
- Pressure to sign a long contract before a trial
- Fixed pricing that excludes rework or revisions
- Reluctance to be named as a third party in your client consent wording
- No answer on what happens to your data when the engagement ends
Pilot first
Start with one return type, or a small group of clients, for a defined trial. Agree success measures upfront: accuracy at review, number of queries per return, turnaround against agreed dates, and your reviewers’ time spent. Review the results together before you widen the scope.
Book A Demo
See how handover, review and lodgment would work for your firm.
Book a demo and we’ll walk through scope, software and security using your own return types.
Frequently Asked Questions
