Why more Australian companies are turning to offshore financial audits for cost efficiency
With cost pressures rising across Australian businesses, demand for effective financial governance, risk management, and compliance is higher than ever. The ability to manage audit requirements and related processes while adapting to new demands directly influences companies’ bottom lines.
Financial complexities and compliance issues in Australia are even more pressing than in many other markets for several reasons. The market’s talent shortage, heightened regulatory scrutiny, and cost increases are constant drivers for the local finance industry.
In this environment, companies are rethinking many of their previous approaches to financial function setup. As a result, in recent years, more organisations have been choosing offshore financial audit services as an effective and affordable way to keep audits under control. No longer perceived as a move involving too much risk, offshore audits are becoming a more considered decision as part of a strategic solution.
Audit requirements add to increasing cost pressures
The finance and accounting function is one of the areas of Australian business that has seen long-term cost inflation. In addition to the overall increase in the cost of living, the shortage of talent is affecting recruitment timelines, as top talent commands higher wages across accounting, auditing, and other finance specialties. In the meantime, companies are expected to keep meeting the compliance and regulatory requirements for audits, reporting, and internal controls.
Evidently, the traditional model, in which a finance function within an Australian company provides all required audit support, is quickly becoming an unaffordable option for many. While it may still be workable for some businesses, both for large organisations and start-ups, more and more companies are now looking at this practice and wondering whether it is really needed, especially if financial work is often process-driven and repeatable and does not necessarily require an on-site presence.
Offshore financial audits provide a valuable cost-saving
Australian businesses are now recognising that utilising offshore talent can provide both specialised expertise and significant labour cost savings. In addition to the lower base salaries for qualified accountants, auditors, and other finance professionals, the cost of procuring such staff is reduced, as are savings on short-term contractors. Most of all, the cost of hiring can be used to fuel other growth-related, revenue-generating activities rather than having to support an expanding internal unit sustainably.
Gain access to more highly qualified professionals
In addition to cost, another factor driving more companies to hire offshore is access to a deep talent pool. With years of experience in offshore markets, many of the individuals who make up these offshore teams possess a solid academic background, exposure to international accounting standards, and familiarity with local Australian reporting requirements, and are able to work independently.
More and more companies are choosing to set up an offshore audit team to augment their existing finance function rather than treat it as a separate, distinctly off-site part of the company. This change is helping drive not only deeper access to a talent pool but also better processes and knowledge continuity.
Australian companies are integrating offshore audits in a more holistic way
In addition to the factors outlined above, what is now becoming a more popular approach for organisations is the integration of offshore support, including for audit work, as part of a larger transformational goal. This approach usually includes, in addition to audit and reporting, accounting, finance, and compliance support.
Companies are no longer treating offshore teams as an option for outsourcing certain tasks. Instead, they are creating a holistic solution by including them on the team across many core finance-related functions. This approach helps to gain visibility over the entire flow of financial data, optimising the amount of work and supporting better decision-making. At the same time, this approach also helps build a more robust and balanced finance function in the long run.
How Global Remote Partners supports Australian companies
Global Remote Partners is helping Australian companies build and sustain dedicated offshore finance teams, which are specifically tailored to their audit requirements, accounting needs and compliance functions. Among outsourcing companies in Australia, Global Remote Partners selectively chooses only a handful of skilled professionals who work exclusively with each client, ensuring continuity and direct alignment with Australian business standards.
In addition, unlike a more ad hoc approach to outsourcing, we at Global Remote Partners focus on building a team for the long term, so it becomes more integrated with an existing finance function. This approach also allows for both control and cost efficiency to coexist.
As the cost of in-house teams continues to grow and financial complexities no longer recede, the Australian business is beginning to change its perception of what is required to keep audit and reporting work effective and within budget.
Offshore financial audits as part of a strategic solution are here to stay, as companies no longer view them as experimental but rather as the mainstay of better financial management. writing here...