Outsourced Finance Function
Foreign companies with Australian operations often need more than basic bookkeeping but are not ready to build an in-house finance team. Hiring a local financial controller, management accountant, and accounts staff in Australia costs $250,000 to $400,000 per year in salaries alone, before office space, systems, and overheads. Australian Business Register provides an outsourced finance function that delivers bookkeeping, management reporting, budgeting, cash flow management, and financial analysis through a single engagement, giving your Australian subsidiary or branch the financial infrastructure of a fully staffed finance department at a fraction of the cost.
What an Outsourced Finance Function Covers
Our outsourced finance function replaces or supplements your internal finance team for Australian operations. The service is structured in three tiers, each building on the one below, so you only pay for the level of support your operations require.
Tier 1: Transaction Processing and Compliance
This is the foundation layer that every Australian operation needs. It covers all the work a bookkeeper and BAS agent would perform:
- Daily or weekly transaction coding and bank reconciliation
- Accounts payable processing and payment runs
- Accounts receivable invoicing and collections tracking
- GST compliance and quarterly BAS preparation and lodgement
- Payroll journal integration with STP reporting
- Month-end close procedures and trial balance preparation
For companies that only need this level of support, our standalone bookkeeping services may be more appropriate.
Tier 2: Management Reporting and Analysis
Beyond compliance, your overseas head office and local management need financial information that supports decision-making. This tier adds:
- Monthly Management Accounts – Profit and loss, balance sheet, and cash flow statements with variance analysis against budget and prior year
- Departmental Reporting – Cost centre and profit centre reporting for businesses with multiple divisions, projects, or locations in Australia
- KPI Dashboards – Tracking of financial and operational metrics relevant to your business (revenue per employee, gross margin by product line, debtor days, etc.)
- Inter-Company Reconciliation – Monthly reconciliation of balances between your Australian entity and overseas group companies, including foreign currency translation
- Group Reporting Packages – Financial data formatted to your group’s consolidation requirements, chart of accounts mapping, and elimination entries
Tier 3: Strategic Finance
This tier provides the financial planning and analysis capabilities typically delivered by a financial controller or finance director:
- Annual Budgeting – Building the Australian operation’s annual budget in consultation with local and overseas management
- Cash Flow Forecasting – Rolling 13-week and 12-month cash flow projections, identifying funding gaps and surplus cash
- Scenario Modelling – Financial modelling for expansion plans, pricing changes, hiring decisions, and capital investments
- Board Reporting – Preparation of financial reports and commentary for board meetings and parent company reviews
- Audit Support – Coordination with external auditors, preparation of audit schedules, and management of the audit process
For companies needing strategic financial leadership at board level, our CFO services provide the senior finance executive function.
How It Works for Foreign Companies
Foreign companies face specific challenges when managing Australian finances remotely. Our outsourced finance function addresses each of these directly.
Time Zone Management
Your Australian finance team operates in AEST/AEDT (UTC+10/+11), which creates a time gap with European, US, and even Asian head offices. We structure our work to ensure reports are ready at the start of your business day, urgent matters are escalated via email and phone during overlap hours, and scheduled calls are timed to suit both parties. For US-based parent companies, we prioritise early morning (Sydney time) handovers so your team in New York or San Francisco has fresh data when they arrive.
Multi-Currency Operations
Your Australian entity transacts in AUD but your group reports in USD, EUR, GBP, or another currency. We handle all aspects of multi-currency accounting including recording transactions at spot rates, revaluing foreign currency balances at month-end, calculating realised and unrealised foreign exchange gains and losses under AASB 121, and providing reports in both AUD and your group currency.
Transfer Pricing Documentation
Inter-company transactions between your Australian entity and related overseas entities must comply with Australian transfer pricing rules under Division 815 of the Income Tax Assessment Act 1997. The ATO actively scrutinises transfer pricing arrangements of foreign-owned entities. Our finance function maintains the transactional records and supporting documentation needed for transfer pricing compliance. For detailed transfer pricing advisory, we coordinate with our taxation services team.
Australian Regulatory Compliance
Beyond tax compliance, your Australian entity has ongoing financial reporting obligations depending on its size and structure:
- ASIC Annual Financial Reports – Large proprietary companies (meeting two of three thresholds: $50M revenue, $25M assets, 100 employees) must prepare and lodge audited financial reports with ASIC
- Foreign-Controlled Company Reporting – Foreign-controlled companies meeting revenue thresholds must lodge financial reports even if they are small proprietary companies
- Taxable Payments Annual Report (TPAR) – Certain industries must report payments to contractors annually to the ATO
Our finance function monitors these obligations and prepares the required reports within statutory deadlines. ASIC penalties for late or non-lodgement of financial reports can reach $1,110,000 for companies and $330,000 for directors personally.
Technology and Systems
Our outsourced finance function operates on cloud-based platforms that provide real-time access to your financial data from anywhere in the world.
Accounting Platforms: Xero (primary), MYOB, or QuickBooks Online. We configure the platform with your group chart of accounts mapping and multi-currency settings.
Expense Management: Integration with Dext, Hubdoc, or your existing expense platform for automated receipt capture and coding.
Reporting: Fathom, Spotlight Reporting, or custom Excel dashboards for management reporting and KPI tracking beyond standard accounting software outputs.
Document Management: Secure cloud storage for invoices, contracts, bank statements, and compliance documents with appropriate access controls and audit trails.
We integrate with your existing group systems where possible. If your parent company uses SAP, Oracle, or another enterprise ERP, we provide data exports in compatible formats for group consolidation.
Cost Comparison
Building an in-house finance function in Australia involves significant fixed costs. The table below shows typical annual costs for an internal team compared to our outsourced service.
| Component | In-House (Annual) | Outsourced |
|---|---|---|
| Financial Controller | $140,000 – $180,000 salary + super | Included in service fee |
| Management Accountant | $90,000 – $120,000 salary + super | Included in service fee |
| Accounts Payable/Receivable | $60,000 – $75,000 salary + super | Included in service fee |
| Software and Systems | $5,000 – $15,000 | Included in service fee |
| Office Space and Overheads | $20,000 – $40,000 | Not required |
| Recruitment and Training | $30,000 – $50,000 (year one) | Not required |
| Total Estimated Cost | $345,000 – $480,000 | From $60,000 – $180,000 |
Our pricing is based on transaction volume, reporting complexity, and service tier. We provide fixed monthly fees so you can budget accurately without surprises from overtime, leave coverage, or staff turnover costs.
Industry Experience
Our outsourced finance team works with foreign companies across a range of industries operating in Australia. Each sector brings specific accounting and reporting requirements that our team handles as part of the standard service.
Technology and SaaS Companies
Revenue recognition under AASB 15 for subscription-based models, capitalisation of development costs under AASB 138, R&D Tax Incentive claims coordination, and management of deferred revenue balances. Technology companies frequently need multi-entity consolidation across Australian and overseas operations.
Professional Services and Consulting
Work-in-progress tracking, project-based profitability reporting, contractor payment management (including Taxable Payments Annual Report obligations), and partner or shareholder distribution calculations. Professional services firms often require detailed time-based cost allocation across projects and clients.
Resources and Energy
Royalty calculations, joint venture accounting, asset depreciation schedules for mining and exploration assets, and state government royalty reporting. Resource companies operating across multiple Australian states need state-specific financial tracking for payroll tax and royalty purposes.
Manufacturing and Distribution
Inventory accounting under AASB 102, cost of goods sold analysis, landed cost calculations for imported goods (including customs duty and GST), and warehouse cost allocation. Distribution companies need integration between inventory management systems and the general ledger.
Why Foreign Companies Choose Outsourcing Over In-House
Beyond cost savings, there are structural reasons why an outsourced finance function is often a better fit for foreign-owned Australian operations.
Staff Turnover Risk
Finance professionals in Australia are in high demand. If your in-house bookkeeper or financial controller leaves, you face recruitment costs ($15,000 to $30,000 through an agency), a three to six month gap before the new hire is fully productive, and the risk of compliance gaps during the transition. Our outsourced service eliminates this risk entirely. If a team member leaves our firm, their replacement is already familiar with our processes and your account.
Scalability
In-house finance teams are sized for average workload, which means they are either underutilised during quiet periods or overwhelmed during busy periods (year-end, audit season, budget cycle). Our outsourced model scales naturally because the work is distributed across a team. You pay for the work that needs to be done, not for idle capacity during quiet months.
Local Compliance Expertise
Australian accounting and tax rules change frequently. BAS requirements, superannuation rates, Modern Award rates, and ASIC reporting thresholds are updated regularly. An in-house bookkeeper may not stay current with every change. Our team maintains up-to-date knowledge across all compliance areas because we manage multiple Australian entities and are exposed to regulatory changes across our entire client base.
Getting Started
Transitioning to an outsourced finance function requires careful planning to maintain continuity and data integrity. Our implementation process typically takes four to six weeks.
Week 1-2: Discovery and Scoping – We review your current financial processes, systems, reporting requirements, and compliance obligations. We document your group reporting calendar, chart of accounts, and inter-company transaction flows.
Week 2-3: System Configuration – We set up or migrate your accounting platform, configure bank feeds, establish user access, and build reporting templates.
Week 3-4: Parallel Run – We process transactions alongside your existing team (if applicable) to validate accuracy and identify any gaps in data or processes.
Week 5-6: Full Handover – We assume full responsibility for the finance function, deliver the first complete reporting package, and establish the ongoing service rhythm.
Contact Australian Business Register on +61 2 8599 9890 or email [email protected] to discuss how our outsourced finance function can support your Australian operations.
Frequently Asked Questions
Is an outsourced finance function suitable for small Australian operations?
Yes. In fact, outsourcing is often the most practical option for smaller operations. A foreign company with five to twenty employees in Australia typically does not have enough work to justify a full-time financial controller, but still needs management-quality financial reporting and ATO compliance. Our tiered structure means you pay only for the services you actually need.
How do you handle confidential financial information?
All client data is stored in cloud platforms with bank-grade encryption, multi-factor authentication, and role-based access controls. Our team members are bound by confidentiality agreements. We do not share your financial data with any third party without your written consent, except as required by law (such as ATO lodgements you have authorised).
Can you work with our existing accounting software?
Yes. We work with Xero, MYOB, QuickBooks Online, and can adapt to other cloud-based platforms. If your current system is not suitable for Australian compliance (for example, a US-only version of QuickBooks Desktop), we will recommend a migration path that preserves your historical data and group reporting compatibility.
What happens if we outgrow the outsourced model?
When your Australian operation reaches a size that justifies an in-house finance team, we support the transition. We assist with recruiting, hand over all documentation, provide training on systems and processes, and remain available for ongoing compliance work such as BAS lodgement and tax return preparation.
Do you prepare annual financial statements?
We prepare annual financial statements in accordance with Australian Accounting Standards (AASB). For companies required to lodge financial reports with ASIC, we coordinate with your appointed auditor and prepare all audit schedules and working papers. The financial statements can be prepared in both Australian format and your group’s reporting format for consolidation.
How do you handle month-end reporting for different time zones?
We structure our month-end process so reports are delivered within five business days of period close. For US and European parent companies, this means your management team receives Australian financial data at the start of their business day. We schedule reporting calls during time-zone overlap windows and provide written commentary with every report pack so your team can review results without needing to wait for a live briefing.
Can you manage our Australian payroll as part of the finance function?
Yes. Payroll processing can be included as part of the outsourced finance function or delivered as a standalone service through our payroll services team. When combined, payroll data flows directly into your general ledger, STP reports are reconciled against accounting records, and superannuation contributions are tracked within the same system. This eliminates the reconciliation gaps that often occur when bookkeeping and payroll are managed by separate providers.
Related Services
Our outsourced finance function integrates with these complementary services:
- Bookkeeping Services – Standalone transaction processing and BAS compliance
- CFO Services – Strategic financial leadership and board-level advisory
- Taxation Services – Income tax returns, transfer pricing, and ATO advisory
- Payroll Services – STP-compliant payroll processing and superannuation management