Outsourcing technical work — BAS, financial statements, tax returns, bookkeeping and compliance — can dramatically increase capacity inside an accounting firm. But the firms that get real long-term value from outsourcing aren’t the ones who simply “send work away.”
They’re the ones who set clear expectations, create structure, and manage outsourced accountants the same way they manage their onshore team.
This guide breaks down a practical, proven way to manage outsourced staff, using real processes Australian firms already use successfully.
If you’re planning to expand your offshore team or improve the way your current team operates, this framework will help you get it right.
1. Set Clear Process Expectations from Day One
Outsourced accountants thrive when expectations are explicit, not assumed.
Below is a practical expectations framework that many high-performing firms use for outsourced BAS, financial statements and tax jobs.
What Outsourced Accountants Should Do for Every BAS Job
Confirm Reporting Basis
Check whether the client reports on cash or accrual basis before doing any reconciliation or GST calculations.
Review Bookkeeping and Reconciliations
- Verify all bank accounts are reconciled.
- Ensure bookkeeping in Xero / MYOB / QuickBooks is complete.
Prepare an Adjusted BAS Worksheet
Generate or prepare the adjusted BAS report with correct GST codes, PAYG W/H, and PAYG Instalment entries.
Prepare Required Working Papers
Depending on the client, this may include:
- Rental property schedules
- Loan summaries
- Property purchase sheet
- CGT worksheet for asset disposals
- BAS reconciliation (GST, PAYG, PAYGI)
- STP and Division 7A repayment schedules
- Tax reconciliation (accounting vs tax)
- Asset register and share register (including DRP movements and cost-base adjustments)
Finalise and Submit for Onshore Review
Document all queries clearly in the working papers and submit for review to the onshore manager.
What Outsourced Accountants Should Do for Financial Report Preparation
Begin with Opening Balances
Confirm the opening balances match last year’s finalised trial balance exactly.
Process or Review Bookkeeping Entries
Enter missing bank/petty cash transactions or review existing bookkeeping for accuracy.
Prepare Year-End Journals
Post all required journals including:
- Accruals
- Prepayments
- Depreciation
- Borrowing costs
- Adjustments carried forward from prior year’s working papers
Maintain the Depreciation Schedule
Add new capital assets, apply write-offs, and update tax/reconciliation depreciation as needed.
Reconcile P&L and Balance Sheet
Ensure the accounts tie out and nothing is unreconciled or unexplained.
What Outsourced Accountants Should Do for Tax Returns
Scenario 1: Tax Return WITH Financial Reports
Transfer the completed financial statements into the tax software accurately.
Scenario 2: Tax Return WITHOUT Financial Reports
Transfer data from working papers or raw source documents.
Prepare & Submit Working Papers for Review
Draft all queries and complete working papers before sending the job to the onshore accountant.
Update Everything After Review
Once reviewed, update the:
- Financials
- BAS or tax return
- Working papers
Then finalise the job.
2. Create a Clean File-Sharing and Workflow Process
The biggest bottlenecks in outsourcing aren’t skill-related — they’re document-flow related.
Here’s how top firms fix that.
How Files Should Be Shared Between Onshore & Outsourced Teams
Use one central cloud platform
The outsourced team uploads:
- Working papers
- File notes
- Queries
- Supporting documents
The onshore manager can access everything directly, without email forwarding or OneDrive clutter.
Keep all work inside the practice’s document system
No storing files on personal drives.
No “lost” working papers.
Everything lives in the firm’s cloud DMS (FYI, Karbon, HowNow, SuiteFiles, etc.).
Communicate the same way every time
- Email for simple queries
- Teams / Zoom for complex matters
- Comments or notes for internal clarifications
This consistency reduces confusion, speeds up review, and aligns your offshore team to the same habits your onshore team uses.
3. Provide Proper Direction and Maintain Supervision
Outsourced staff are not “set-and-forget.” Firms that treat offshore staff like part of the real team get the best performance.
Here’s what strong supervision looks like:
How Onshore Managers Should Direct the Outsourced Team
Review every completed job
Onshore managers check all jobs and provide structured feedback.
List errors with explanations — not just corrections
This helps the outsourced accountant learn your standards and replicate them.
Create open communication channels
The outsourced accountant must be able to:
- Ask questions early
- Escalate issues
- Flag non-compliance
- Raise accounting or tax concerns
- Disclose conflicts of interest
Reinforce quality assurance standards
Outsourced accountants should follow the same internal requirements as your Australian team:
- Maintain robust working papers
- Keep calculation notes
- Document research sources
- Keep file notes for all client queries and instructions
- Follow naming conventions and templates
This is how quality stays consistent across borders.
4. Make Performance Measurable (This Is Critical)
The biggest mistake firms make is assuming offshore teams “just know” expectations.
Instead, define measurable outcomes:
✅ Due dates (per job type)
✅ Budgeted hours
✅ Rework rates
✅ Accuracy benchmarks
✅ Review turnaround time
✅ Communication responsiveness
✅ Number of unresolved queries
When performance is measurable, it becomes manageable.
5. For More Complex Groups — Use Flowcharts
For any group structures involving multiple entities, create a simple entity flowchart that shows:
- Who owns what
- Inter-entity loans
- Trust distributions
- Dividend flows
- Related-party transactions
Top firms create this once and reuse it annually. It dramatically reduces confusion for both onshore and offshore teams.
6. The Real Reason This System Works
This process works because it is structured, repeatable, and transparent.
Most outsourcing failures happen because:
❌ expectations were vague
❌ review was inconsistent
❌ workpapers were unclear
❌ people used different systems
❌ communication was scattered
The framework above eliminates those issues.
You get:
✅ predictable output
✅ consistent quality
✅ faster turnaround
✅ lower rework
✅ stronger training flow
✅ outsourced staff who operate like part of your Australian team
This is how firms like TOA, CountHQ, Befree and SPPDAC train their teams — and why their clients see results.
Final Thoughts
Outsourcing technical accounting work is not a shortcut — it’s a system.
When you build structure around your outsourced team, the results compound over time:
✅ better quality
✅ faster jobs
✅ less pressure on partners and seniors
✅ happier internal staff
✅ scalable workflow capacity
If you’re going to outsource, do it like a firm that’s built for growth.
This framework helps you get there.
