In January 2024 CPA Australia released a report that showed the number of students completing bachelor-level and above programs in accounting had almost halved in the decade to 2020 to just 2,278 a year. Given the number of Accounting Services businesses in Australia has been reported at 37,428 (as of 2024), and there has been an increase in firms of 2% from 2023, we can expect ongoing increases in firms. The 37,000 firms have been supported by the 128,870 people working within the Australian accounting services industry. With 2,278 graduates being available annually, there is going to be a co ..read more

In the wake of Australia’s new “right to disconnect” laws, many Australian accounting firms are reevaluating their operational strategies, particularly in terms of maintaining productivity and ensuring service availability. Offshore labour emerges as a strategic solution in an ever-changing Australian labour market, offering numerous benefits that can help Australian accounting firms navigate these new regulations while staying competitive in the Australian (and global) market. With Australian workers now given a clear sign they can clock off once their contractual time is completed, it’s like ..read more

In an era where technology is at the forefront of most industries, accounting firms are not exempt from the transformative wave. However, even with advanced technological tools at their disposal, these firms face a persistent challenge: a shortage of skilled accountants. This dilemma raises a crucial question: Does resorting to outsourcing offshore comprehensively address this issue, or is it just a partial solution? The accountant shortage dilemma The accounting industry, despite its rapid digitalisation and adoption of tech solutions, continues to grapple with a significant talent shortage ..read more

Over a decade ago, the term “offshore accounting” began gaining traction in Australia primarily due to the ongoing skills shortage. Offshore outsourced accounting has emerged as a new business model development. In response, numerous Australian accounting firms started outsourcing their accounting processes to offshore locations. This approach aimed to address the scarcity of skilled accounting professionals and reduce overhead costs. If you own an accounting firm in Australia, you might have heard about offshore accounting but may not have engaged with it yet. You may have questions about how ..read more

You must be tired of hearing about the Australian skills shortage in the accounting industry over time, from your daily news stories to social media feeds. Particularly, many Australian accounting firms have found themselves entrenched in this woeful and sticky situation. Let’s dive into the details of the accountant shortage in the Australian labour market and how Australian accounting firms responded to the situation. 1. The context of the Australian accountancy labour market where skills shortage exists A recent 2023 report revealed that 46% of accounting teams were shorted on accountants ..read more

Over the past few years, demand for accounting services has kept increasing. In the meanwhile, the Australian accounting industry has been facing critical skills shortages and the ability to catch up with market trends. The industry is now highly labour-intensive that requires a large number of accountants. Many are seeking offshore accounting workforce to overcome or at least mitigate the situation. Not only that, firms are also raising issues with information security, regulatory changes, leveraging technologies, and more. Let’s explore top 6 drivers of your Australian accounting firms to fi ..read more

I was really happy recently to receive a great client comment on the Odyssey helping them “enjoying work for the first time in 2 decades, and looking forward to getting some time off and a life”. There’s really nothing to add to the blog this week, but just to copy the email as received. We’ll allow you to ponder whether you too might benefit from outsourcing! Hi, I just wanted to express my appreciation of the most positive and professional staff that just met with me. I am sorry I didn’t get their names however you must be proud of them. It’s really easy to compliment your staff and organisa ..read more

I spoke to the director of an Australian firm last week who had staff resource issues, and he’d indicated he had both bookkeepers and compliance staff in an offshore location. He’d had these staff for a couple of years and had trained them up in both SMSF and compliance (company, trust partnership, sole trader and individual returns). This firm had 125 SMSF’s and all was going well. They’d invested the time to go over to the Philippines to train these staff, spent scarce manager time reviewing their work and upgrading their skills, engaged with them as team members through remote chat programs ..read more

Click for related articles Over the next 12 months we can expect increased pressures on pricing for domestic Australian accounting employees. At the moment, the Australian Bureau of statistics has the November 2021 Full-time adult average weekly total earnings at just under $2,000, with specific higher demand industries being above average. The Australian accounting news sources are already reporting large salaries being offered to attract staff ($30,000 above market rate), along with sign on bonuses of up to $30,000, and loyalty bonuses of $30,000 to keep staff. For those with inhouse employe ..read more

Click for related articles Are you too busy? We recently received a comment from a client that pretty much summed up everything good about outsourcing your compliance work. Odyssey believes that Australian SME businesses are best served when Australian accounting firms are providing additional work outside the compliance space. And with a never ending raft of new tax laws, guidance notes, practice notes and suggestions on best practices, it’s pretty much a full time job staying up to date with compliance knowledge, let alone having the time to complete the compliance work. Below is a comment t ..read more