The talent shortage in Australia is causing several complications for businesses, particularly when it comes to hiring in IT, finance, and customer service sectors. The demand for skilled professionals continues to rise, and companies are facing longer hiring cycles and increases in overall recruitment costs. These can eventually result in falling behind in a competitive market.

Traditional hiring will not be enough anymore. It’s in this uncertain environment that you can clearly see the benefits of hiring offshore teams. By making investments in global talent, you can access skilled professionals while also reducing costs and avoiding the headaches of recruitment.

But isn’t the hassle of sourcing and recruiting offshore professionals more tedious? It doesn’t have to be. You can scale and stay competitive in this rapidly evolving market by utilising VKonnect’s outsourcing solutions, which fill the gaps in your workforce.

What is the talent crisis in Australia?

There is a noticeable skills shortage in Australia that is being felt across industries, and it is more pronounced in the IT and finance sectors. Businesses in these industries need workers with specialised knowledge to stay ahead, but the local Australian talent market alone cannot keep up with the demand. Businesses find themselves struggling for months to fill key positions, which impacts productivity, growth, and eventually the bottom line.

This talent crisis forces businesses to settle for less experienced candidates or pay premium wages to hire top-tier professionals—both of which, in their own way, strain company resources. For smaller businesses, this can mean overspending on hiring or missing out on talent entirely.

Offshore teams- How it can be a cost-effective and scalable solution

Offshore teams are a proven way for your business to easily overcome these challenges. With offshore talent, you will gain access to a larger, more diverse pool of qualified professionals without problematic delays and the high costs of traditional recruitment. With VKonnect, everything becomes easier.

Do you know why offshore teams are becoming the go-to solution for businesses in Australia? Because they can benefit from:

Quick access to talent

Due to the prevalent talent shortage in Australia, you will have to wait for long periods for suitable candidates to fill vacancies. With offshore talent, they are readily available, so you can enjoy a hiring process with a fast turnaround.

VKonnect is ready to further speed up the hiring process for you by filtering applications and conducting the first round of interviews. This way you will be left with only the most suitable candidates to choose from, significantly reducing the time you spend on recruitment.

Cost savings

Offshore hiring is a significantly more cost-effective hiring solution when compared to local hires.

Unlike regular staffing solution providers, at VKonnect, you only need to pay a monthly subscription fee, and all your staffing functions are taken care of under pre-agreed terms. With this transparent fee structure, you can enjoy direct access to top-tier professionals without the financial burden of staffing.

Scalable teams

With offshore teams from VKonnect, you can scale your workforce up or down depending on the situation.

This need can arise during short-term projects or for long-term support. VKonnect has flexible solutions that are adaptable to your requirements.

Access to global expertise

The talent pool available offshore is often deeper and more diverse. You will find high-quality individuals with specialised skills that may not be readily available in Australia.

With VKonnect offshore professionals, you can access a wide range of experts that adapt easily to specific business needs.

Why you should choose VKonnect as your staffing solution provider

The trend of offshore staffing solutions is visibly gaining popularity, but not all the solution providers give equal benefits. The real value is only enjoyed from finding a partner who can understand the unique needs of your business and can be flexible and adaptable enough to deliver a seamless and affordable solution.

VKonnect is more than just a regular staffing agency. We put all our efforts into building dedicated teams to work as seamless extensions of your existing workforce. That’s why VKonnect is the best offshore staffing solution partner for your Australian business.

Tailored teams for your needs

When you need someone who takes the time to understand your company’s culture, objectives, and challenges, VKonnect is your best option.

They provide staff that has experience working remotely and understands how to align with your specific goals. This approach guarantees that every offshore team member contributes to your success even from a distance.

Seamless integration

VKonnect understands your need for offshore professionals to integrate smoothly with your in-house teams. The offshore staff will be highly skilled and adaptable individuals who will have no difficulty in learning and adjusting to work as part of your organisation.

They will adapt to the same tools, communication methods, and processes that are already used by you.

End-to-End Support

VKonnect takes care of the entire hiring process, beginning from recruitment to management. We handle all the logistics of hiring, giving you peace of mind to focus on running your business.

Scalable, Flexible Staffing

If you need a small team for a project or a full-scale operation, you can request staffing solutions according to your needs. Our flexibility allows you to scale quickly and efficiently as your business grows.

Ongoing Success

VKonnect is a local company that excels in providing remote teams for Australian companies. Our commitment to ensuring the long-term success of your organisation by maintaining the standards of their offshore teams. We provide continuous support, monitor team performance, and adjust as necessary to ensure your offshore staff delivers every time.

The time to consider offshore staffing solutions is now

Australia’s talent shortage is a challenge that every CEO and business leader will face. The good news is that offshore teams from VKonnect will help you stay competitive, reduce costs, and meet staffing needs faster than traditional hiring methods.

You no longer need to settle for long hiring cycles or overpriced hires. VKonnect provides seamless, cost-effective ways for your business to access talent along with the expertise, flexibility, and support you need to succeed.

Don’t let the talent shortage hold you back. Contact VKonnect today to start building the team you need to drive your business forward.

In today’s fast-paced business landscape, efficiency and cost savings are paramount for success. Many companies in Australia are turning to outsourcing administrative tasks to streamline operations, reduce overhead costs, and improve productivity. Outsourcing can provide significant advantages whether you’re a small business owner or a growing enterprise. This guide explores how outsourcing administrative tasks can help businesses boost efficiency and cut costs in Australia.

What are administrative tasks?

Administrative tasks encompass a wide range of daily business operations that support the smooth running of an organisation. These include:

• Data entry and management
• Appointment scheduling and calendar management
• Customer service and support
• Email management
• Payroll and bookkeeping
• Document preparation and processing
• Human resource management
• Virtual assistance

While these tasks are essential, they can be time-consuming and divert focus from core business activities. Outsourcing administrative tasks allows businesses to delegate these functions to skilled professionals, freeing up time and resources for growth-focused initiatives.

Benefits of outsourcing administrative tasks

Cost savings

One of the primary reasons businesses in Australia outsource administrative tasks is cost reduction. Hiring in-house employees for administrative roles comes with expenses such as salaries, benefits, office space, and equipment. Outsourcing eliminates these costs, allowing businesses to pay only for the services they need.

Access to skilled professionals

Outsourcing provides businesses with access to a pool of highly trained administrative professionals. Companies can leverage the expertise of virtual assistants, data entry specialists, and customer service representatives without investing in training and development.

Increased productivity and efficiency

By outsourcing routine administrative tasks, businesses can allocate internal resources to more strategic functions. This leads to enhanced efficiency and productivity, as employees can focus on core business activities instead of time-consuming administrative work.

Scalability and flexibility

Outsourcing administrative tasks offers scalability, allowing businesses to adjust services based on their needs. Whether you require temporary support during peak seasons or ongoing assistance, outsourcing providers offer flexible solutions to accommodate changing business demands.

Improved focus on core business functions

Administrative tasks, while necessary, do not directly contribute to revenue generation. Outsourcing these functions enables businesses to redirect their focus towards innovation, customer acquisition, and expansion strategies.

Enhanced business continuity

With remote administrative support, businesses can ensure operational continuity even during disruptions such as lockdowns, natural disasters, or staffing shortages. Outsourcing providers offer reliable support to keep operations running smoothly.

How to choose the right outsourcing partner in Australia

Selecting the right outsourcing provider is crucial to maximising the benefits of delegation. Here are key factors to consider:

Experience and expertise

Look for outsourcing companies with a proven track record in handling administrative tasks efficiently. Check client reviews, testimonials, and industry experience.

Data security and compliance

Since administrative tasks often involve handling sensitive information, ensure the outsourcing provider follows strict data security protocols and complies with Australian privacy laws.

Service customisation

Choose a provider that offers customised solutions tailored to your business needs. A one-size-fits-all approach may not be suitable for every company.

Technology and tools

The right outsourcing partner should utilise the latest technology and software for seamless integration with your existing business processes.

Transparent pricing structure

Ensure the provider offers clear pricing with no hidden fees. Compare costs and services to determine the best value for your business.

Why VKonnect is the best choice for outsourcing administrative tasks

At VKonnect, you will get top-tier outsourcing solutions for businesses across Australia. Your administrative functions will be handled by our team of experienced professionals seamlessly, allowing you to focus on business growth. Here’s why businesses trust us:

• Experienced and skilled professionals in administrative support
• Cost-effective outsourcing solutions tailored to your business needs
• Cutting-edge technology and data security measures
• Flexible service options to scale with your business

Conclusion

Outsourcing administrative tasks is a smart and strategic move for businesses in Australia looking to enhance efficiency and reduce costs. By partnering with a trusted provider like VKonnect, you can streamline operations, gain access to skilled professionals, and free up valuable resources to drive business success.

Ready to transform your business with outsourced administrative support? Contact VKonnect today and take the first step towards a more efficient and cost-effective future!

Running a small or medium-sized business (SMEs) in Australia comes with countless demands. Between managing staff, serving customers, and growing your business, keeping track of finances can feel overwhelming. Outsourced accounting offers a practical solution to this common challenge.

The real cost of managing your own accounts

Time is precious for every business owner. Hours spent reconciling accounts, managing payroll, and preparing tax documents are hours taken away from:

• Building customer relationships
• Developing new products or services
• Training and supporting staff
• Planning for growth
• Finding new business opportunities

How outsourced accounting changes the game

Outsourcing financial tasks to experts brings immediate benefits:

• Freedom to focus on core business activities
• Professional expertise without the full-time salary
• Reduced stress around tax compliance
• Clear insights into business performance
• Peace of mind knowing experts handle your finances

Smart financial solutions for Australian SMEs

The outsourced services cover essential financial needs:

• Daily bookkeeping and bank reconciliation
• Payroll processing and management
• Tax preparation and lodgement
• Financial reporting and analysis
• BAS and IAS statement preparation

The cost-effective choice

Full-time accountants come with significant expenses:

• Annual salary and benefits
• Office space and equipment
• Training and development costs
• HR management time

Outsourced accounting eliminates these costs. Pay only for needed services while accessing professional expertise.

Local knowledge matters

Australian businesses face unique challenges and opportunities. Working with accountants who understand local regulations and business practices ensures compliance and maximises potential benefits.

Technology at your fingertips

Modern accounting software puts financial information at your fingertips:

• Access reports anytime, anywhere
• Real-time financial insights
• Secure data storage
• Automated routine tasks

Getting started is simple

Transform your financial management in three steps:

• Schedule a needs assessment
• Receive a customised solution
• Experience stress-free financial management

Take control of your business finances

Ready for simpler, more efficient financial management? Book a consultation to discover how outsourced accounting can transform your Australian business.

Streamline your finances today and focus on what truly matters – growing your business.

The Australian outsourcing market continues to evolve rapidly, with businesses increasingly turning to external service providers to optimise operations and drive growth. This guide explores current trends, opportunities, and considerations specific to the Australian outsourcing landscape.

The Australian outsourcing landscape

Current market trends

• Growing adoption among small and medium enterprises
• Increasing focus on digital transformation services
• Rising demand for specialised expertise
• Shift towards outcome-based partnerships
• Enhanced focus on cybersecurity and data protection

Regulatory framework

Australian businesses must consider several regulatory requirements when outsourcing:

Privacy Act 1988 and Australian Privacy Principles (APPs)

• Mandatory data breach notification requirements
• Cross-border data transfer restrictions
• Privacy impact assessment requirements

Industry-specific regulations

• APRA guidelines for financial services outsourcing
• Healthcare data handling requirements
• Cybersecurity requirements for IT service providers

Popular Outsourcing Services in Australia

1. IT Services

Common services:

• Cloud infrastructure management
• Software development
• Cybersecurity services
• IT support and maintenance

Industry trends:

• Increased demand for cloud migration expertise
• Focus on cybersecurity capabilities
• Integration of AI and automation
• Emphasis on agile development methodologies

2. Financial and accounting services

Key services:

• Bookkeeping and accounting
• Payroll processing
• Tax preparation
• Financial reporting

Compliance requirements:

• GST reporting standards
• Single Touch Payroll (STP) compliance
• Australian Accounting Standards Board (AASB) requirements

3. Customer support

Service options:

• Multichannel support services
• After-hours customer service
• Technical support
• Customer feedback management

Time zone considerations:

• AEST/AEDT coverage strategies
• Follow-the-sun support models
• Public holiday coverage planning

Benefits and challenges

Key benefits

• Cost efficiency
  • Reduced operational costs
  • Lower infrastructure expenses
  • Flexible scaling options
• Access to specialised skills
  • Immediate expertise access
  • Reduced training requirements
  • Access to latest technologies

Challenges and solutions

1. Data Security and Privacy

Challenge: Meeting Australian privacy requirements

 Solution:

• Regular security audits
• Data encryption protocols
• Compliance monitoring
• Clear data handling agreements

2. Cultural Alignment

Challenge: Maintaining Australian business culture

Solution:

• Cultural training programs
• Team integration activities
• Communication protocols
• Business hours alignment

3. Quality Control

Challenge: Maintaining service standards

Solution:

• Detailed service level agreements
• Regular performance reviews
• Quality monitoring systems
• Customer feedback processes

Choosing an outsourcing provider

Essential criteria

1. Compliance and Certification

• Australian business registration
• Industry-specific certifications
• Data security compliance
• Quality management systems

2. Experience and expertise

• Verifiable client references
• Industry-specific experience
• Documented success cases
• Team qualifications

3. Infrastructure and technology

• Modern technology stack
• Disaster recovery plans
• Communication systems
• Quality control processes

Due diligence checklist

• Reference verification
• Financial stability assessment
• Infrastructure evaluation
• Security protocol review
• Compliance verification
• Service level agreement (SLA) review

Implementation guide

Phase 1: Planning

Key Activities:

• Define objectives
• Identify provider requirements
• Develop selection criteria
• Create budget framework

Phase 2: Provider selection

Steps:

• Request proposals
• Evaluate providers
• Conduct assessments
• Check references
• Negotiate terms

Phase 3: Transition

Process:

• Develop transition plan
• Establish communication channels
• Conduct training
• Transfer knowledge
• Implement monitoring

Measuring success

Key performance indicators

1. Operational Metrics

• Cost efficiency measures
• Service quality indicators
• Response time tracking
• Resolution rate monitoring

2. Business impact

• Return on investment
• Customer satisfaction
• Productivity measures
• Process efficiency

Successful outsourcing in Australia requires careful attention to local regulations, cultural factors, and business requirements. By following this guide and conducting thorough due diligence, businesses can build effective outsourcing partnerships that support their growth objectives.

Additional resources

• Australian Industry Standards
• Privacy Commissioner Guidelines
• Australian Business Register

The time to lodge and pay your BAS is around the corner and as you are getting busy we would like to remind you that It’s easy to make a mistake when preparing your BAS. The key is to be aware of common pitfalls so you can avoid them. Thanks to much online accounting software, preparing your Business Activity Statement (BAS*) is easier nowadays but still, the ATO has identified several mistakes commonly made in the BAS reporting form. ATO estimates that over 80% of BAS reports are incorrect.

Here are the 11 common GST mistakes made in BAS reports.

1. Accidental double dipping on GST

When it comes to hire purchase/lease of vehicle, plant, and equipment area of the BAS, the client or the accountant will claim the full GST component in the first quarter that they purchase their vehicle. When recording their regular monthly payments, the client will either continue to code it as a GST or as a Capital Expense which will lead to confusion. Both the tax codes GST and CAP appear on their BAS Reporting sheet, causing them to ‘double dip’ on the GST. Make sure you code your monthly repayments accurately by checking your purchase invoice and BAS records.

2. Assigning incorrect tax codes in your charts of accounts

This is another mistake people commit while lodging BAS. Always ask either your accountant or BAS agent to set up your Chart of Accounts tax codes before you use your online accounting software.

3. Claiming GST against all expenses

Some expenses do not have a GST component. They include:

• Motor vehicle registrations.
• Bank charges.
• ASIC fees.
• Paypal transaction fees.
• Google Adwords.
• Interest and director fees/drawings.
• Insurance policies. The stamp duty component in the premium is not subject to GST.
• Government charges such as land tax, council rates, and water rates are FRE.
• Car registration has a partial GST component.
• Super and salary payments don’t have GST.
• Basic foods, health services, and exports don’t have GST applied to them.
• Mobile phone charges are GST-free. GST is not accounted for until the recharge purchase is redeemed.
• Gift Cards are GST-free and like recharges the GST is not accounted for until the cards are used to purchase goods.
• Donations are GST-free.

• Second-hand goods purchased from a charitable organisation are GST-free.

4. Claiming GST against all sales

Some services and products in the medical and healthcare areas also do not include GST. Also, basic food for human consumption does not include GST.

5. Including wages and superannuation in G11 as a purchase

You need to report wages and superannuation in W1 on your BAS statement. They are not an expense to be included in G11, which is for non-capital purchases.

6. Forgetting to include all cash sales and purchases

You must never discount the GST when receiving payments in cash. In the areas like building and construction business, owners are obliged to submit a Taxable Payments Report annually and the ATO has a sophisticated process of cross-matching data in these areas.  Therefore, make sure you declare all cash payments.

On the flip side, make sure you discuss all genuine tax deductions and GST credits with your bookkeeper or accountant.

7. Claiming on GST for private purchases

You cannot claim GST credit on your BAS statement for the items such as personal loans, director’s fees, and any other purchase for private consumption.

8. Reporting purchases of capital items with the wrong tax code

For any business asset you purchase that costs more than $1000, you need to report in G1 under capital purchases in the BAS and not G11.  Please seek advice from an accountant, if you have any doubts.

9. Not including capital sales in G1 (Total Sales)

This includes the sale of motor vehicles, a trade-in or office equipment.

10. Claiming GST credits on purchases where the supplier is not registered for GST

You obviously can’t claim GST if the supplier is not registered for GST and not charging it on their goods and services. While 99% of your suppliers are probably registered you need to check their source invoice to see if it is a ‘Tax Invoice’ with a GST component.

You may also go to the ABN lookup page and type in the supplier’s ABN number or check their business name.

Suppliers are bound by law to provide you with an ABN number when you purchase goods or services from them. If a supplier does not quote an ABN number, you ought to withhold an amount for that supply called “No ABN withholding”.

11. FRE, N-T or GNR: Which is the right code?

Don’t fail to use the coding FRE for GST-free sales and purchases. For example, basic foodstuff, sewerage, and water, eligible childcare, non-commercial activities of charitable institutions, and most education and health services are GST free. FRE is recorded on your BAS form.

For anything not reported on your BAS like cash transfers, deposits paid, depreciation, recording stock movements, Government charges such as FID, BADT, owners drawing, and director fees, use coding N-T

If a supplier is registered with an ABN but not registered for GST then use GNR coding.

Get help from VKonnect Solutions

Small Business owners need to have good record-keeping habits and avoid unnecessary mistakes. If you find this too difficult and time-consuming the best way to ensure that you are preparing your BAS correctly would be to outsource your BAS preparation and lodging to an external accountant/Bas agent.

VKonnect is a reputed business process outsourcing (BPO) company based in Melbourne that specialises in providing outsourcing services to Australian businesses in a wide range of industries. We are experts in outsourcing business activities in areas such as IT, accounting, administration, and customer services/support.

Contact us for any outsourcing needs in IT, accounting, administration, and customer services/support.

Get a quote →

Accounting and bookkeeping are essential tasks for any business, but they can also be time-consuming and complex. Outsourcing these tasks to a professional firm can provide several benefits for your company. Here are 10 benefits of bookkeeping and accounting outsourcing that you should consider:

Time-saving

Both bookkeeping and accounting outsourcing allows you to free up time for other important business activities. This is especially beneficial for small businesses that may not have the resources to handle these tasks in-house.

Cost-effective

Hiring a professional firm to handle your accounting and bookkeeping can save you money in the long run. This is because you will not have to pay for the salaries and benefits of full-time employees, and you will only pay for the services you need.

Increased efficiency

Professional firms have the expertise and experience to handle accounting and bookkeeping tasks quickly and efficiently. This can help improve your business’s overall productivity.

Reduced errors

Outsourcing your accounting and bookkeeping tasks can help reduce the risk of errors. This is because professional firms are trained to catch and correct errors, which can save your business money in the long run.

Access to advanced technology

 Professional firms often have access to advanced technology and software that can improve the accuracy and efficiency of your accounting and bookkeeping tasks. This can provide a competitive advantage for your business.

Improved compliance

Professional firms are familiar with the latest tax laws and regulations, which can help ensure that your business stays compliant. This can save your business from costly penalties and fines.

Better financial reporting

Professional firms can provide you with accurate and up-to-date financial reports that can help you make informed business decisions. This can help improve your business’s overall performance.

Increased scalability

Outsourcing your accounting and bookkeeping tasks allows you to scale your business without having to hire additional employees. This can help you save money and improve your business’s overall performance.

Access to expert advice

Professional firms can provide you with expert advice and guidance on accounting and bookkeeping matters. This can help you make better business decisions and improve your business’s overall performance.

Peace of mind

Outsourcing your accounting and bookkeeping tasks can give you peace of mind, knowing that your business’s finances are in good hands. This can help you focus on growing your business and achieving your goals.

In conclusion, bookkeeping and accounting outsourcing can provide businesses of all sizes with several benefits, including cost savings, time savings, improved accuracy and efficiency, and compliance with laws and regulations. By outsourcing these tasks to a professional firm, businesses can save time and money, while also improving the accuracy and efficiency of their financial operations. Additionally, outsourcing allows businesses to focus on their core competencies and help them grow and develop.

Grow your business with VKonnect Solutions, Australia

Headquartered in Melbourne, Australia, VKonnect Solutions is a young and energetic firm that specialises in the business of outsourcing. Established in the year 2018, we rapidly evolved into a thriving outsourcing & implementation solutions provider.

VKonnect Solutions understands the importance of loyalty and dedication in the development of a business and hence guarantees to deliver optimal results. For over 5 years, VKonnect has served its partners with a dedication to ensure every step of their business growth is geared with the right knowledge and expertise.

With a world-class talent pool and best operational and technological resources under our belt, we eliminate the hassle out of developing and managing a successful offshore team/business. We are results-driven and one hundred percent committed to fulfilling and exceeding our partners’ expectations.

Our team is obsessed with our business mantra, “Serve your customers from the heart."

Call us today for any of your outsourcing needs at 03 7034 4330

Business Activity Statement (BAS) is a monthly or quarterly tax reporting requirement by the Australian Taxation Office. Every business registered for Goods and Services Tax (GST) is required to lodge a Business Activity Statement (BAS) to the Australian Taxation Office (ATO) either monthly or quarterly, depending on its specific tax reporting obligations.

The ATO uses the information on your BAS to work out your GST refund or bill. It’s also used to calculate business income tax (if you’re in the pay-as-you-go system), employee income tax, fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits.

Taxation is a time-consuming and complex business process. If you are a small business owner who opts to do it yourself, some restless, tough days are ahead for you. The tough part is not paying business GST and other tax obligations, it is the preparation, computation, and filing of tax returns that are difficult for most entrepreneurs.

Suddenly you will notice that the deadline is nearing, causing panic and nervousness leading to a hurried attempt to report by the deadline. This rush will end up in committing errors that may cause your business a great deal of loss.

But you don’t need to suffer that way. Thanks to the advancement of internet technology, there are endless opportunities to improve business processes, including outsourcing. Outsourcing your taxation process, without any doubt, is a viable solution.

Accounting, bookkeeping, and taxation are ideal business processes for outsourcing. All that is needed is a professional with the knowledge, skills, experience, the government certification, and an additional factor–the eagerness to go that extra mile. Then you are set to go.

5 benefits of outsourcing business taxation

Time-saving

GST and BAS report preparation and lodgements are done monthly, quarterly, or annually.  Outsourcing helps you take out the complexity of bookkeeping, recording, accounting, and calculations from your plate. Because successful people invest only in assets that provide a positive return.

There are many kinds of assets. The most valuable, non-renewable asset in the world is your time. Use that precious time to focus on your business’ growth, management, marketing, innovation, and spending time with your family. These are the things that matter to you.

Money-saving

Hiring highly experienced and certified accountants in-house to handle your business taxation and putting all the infrastructure in place proves to be very expensive and is not the most feasible option for smaller businesses. The best option is outsourcing to an experienced and certified professional and enjoying the best of both worlds.

Accuracy and compliance

When you outsource your taxation to a professional, you can be 100% sure that the preparation and lodging of GST and BAS are done by someone trained and experienced in the process and well-versed in current tax rules and regulations in your country hence the data are accurate and compliant. The following is the list of the common mistakes noticed by the Australian Taxation Office:

• Accidental ‘double dipping’ on GST
• Incorrect tax codes in your chart of accounts
• Claiming GST against all expenses
• Claiming GST against all sales
• Including wages and superannuation in G11 as a purchase
• Forgetting to include all-cash sales and purchases
• Claiming GST for private purchases
• Reporting purchases of capital items with the wrong tax code
• Not including capital sales in G1 (Total Sales)
• Claiming GST credits on purchases where the supplier is not registered for GST

Let the experts do it

No need to fear the tax schedules and deadlines. By delegating your tax preparation, you free up yourself from long hours of backbreaking work. Outsourcing your taxation to a professional will give you the peace of mind that your taxation is being handled by an expert.

Access to top-notch tools

Outsourcing allows you to have access to the latest accounting tools. You can choose accounting and taxation professionals who are equipped with robust, and modern tools that let you manage your accounting from any part of the world. You can instantly view reports and access files anytime, anywhere and this facility is offered to you for a lower cost.

Let us do the hard work while you enjoy the benefits

Taxation time is approaching fast and worry and anxiety are bothering your mind and cripples your performance. But don’t worry, we are here to back you up. We are an outsourcing company based in Melbourne offering a full suite of outsourced accounting and bookkeeping, customer support & admin, and IT services.

We can outsource the best taxation professional for you right away from our world-class talent pool. Our outsourcing process is astonishingly fast, and we can hand-pick the right taxation professional in no time. The accounting agents we hire possess internationally recognised qualifications, years of industry experience, and dedication to excellence.

Talk to us about any of the GST, BAS, and tax requirements of your business. If you’re truly serious about taking your business to a new level of success, then we have excellent news.

For a limited time only, we’re offering you a free, no-obligation session with one of our outsourcing experts.

To claim your free consultation or find out more information about this limited-time offer, all you need to do is call us on 03 7034 4330.

Get a quote →

What is STP Phase 2?

When initial phase of the Single Touch Payroll (STP) was introduced, companies started adopting the system steadily and subsequently filling payroll information has become much easier for employers and in turn, collecting essential information has been easier for the Australian Tax Office. From 2018, the STP system became mandatory for larger companies and from 2019 the STP system became mandatory for smaller companies as well.

In the 2019-20 budget, the Government announced that STP Phase 2 would be rolled out providing additional benefits.

The STP Phase 2, will eliminate the reporting burden for employers who need to report information about their employees to multiple government agencies. It will also help customers of Services Australia who may be your employees, get the right payment at the right time.

The mandatory start date for Phase 2 reporting is 1 January 2022.

It was easier for Australian companies to submit their payroll information to the Australian Tax Office through the first phase. The STP enabled system, enabled the employers to automatically send payroll data to the ATO as they file their payroll information on their own internal system. STP streamlines the process removing the need to file additional reports at the end of each tax year. In the STP 1st phase rollout, the STP reports unified information such as salaries and wages, super liability information, tax, pay as you go (PAYG) withholding, and superannuation automatically. The second phase demands more additional information from companies.

How flexible is the transition?

The Australian Taxation Office adopts a flexible, reasonable and practical approach towards STP Phase 2 depending on your business readiness and individual circumstances.

You can start Phase 2 reporting if your solution is ready for 1 January 2022.  If your solution is ready and you can start Phase 2 reporting before 1 March 2022, you will be reporting on time and you won’t need to apply for more time.

Digital service providers (DSPs) who need more time to make the changes and update their solutions to support STP 2 can apply for a deferral for their customers.

Until 31^st December 2022, there won’t be penalties for genuine mistakes for the first year of Phase 2.

You can apply for more time past your DSP’s deferral if you need more time to transition. Your registered agent can also apply on your behalf.

Benefits of STP Phase 2

Benefits for employers

The first phase of the STP rollout tries to streamline the payroll process through quick and easy submission; the second phase will reduce redundancies in the reporting and submission process. This will prevent mistakes and make tax returns easier for both employers and employees because so much of the data will have already been collected.

For example, employers will no longer need to do the following tasks: 

• Completion and provision of Employment Separation Certificates for terminated employees.
• Monthly completion and submission of child support deductions report.
• Provision of employee payment summaries.
• Provision of payment summary annual report to the ATO.
• Sending of employee TFN declarations to the ATO.

Benefits for employees are equally expansive and include:

• Ensure more accurate payments from their employers.
• Income-related debt will be lower for employees.
• Changes to income will be easier to decipher.
• Fewer reporting errors.
• More equitable debt capacity analysis.

Things that remain the same

While you’ll need to report additional information in your STP report, there are many things that will stay the same, such as:

• the way you lodge
• the due date
• the types of payments that are needed
• tax and super obligations
• end-of-year finalisation 

Key changes

Most of the additional information you need to report should already be captured in your current payroll software.

The key changes to the STP report include:

• Disaggregation of gross.
• Employment and taxation conditions.
• Income types.
• Country codes.
• Child support garnishees and child support deductions.
• Reporting previous Business Management Software IDs and Payroll IDs.

Conclusion

It’s important you are ready to start STP Phase 2 reporting once your digital service provider (DSP) has updated your product.

This information is also available as a PDF – see Employer STP Phase 2 checklist (PDF, 232KB)

Learn more about

• Things you can do now to prepare for STP Phase 2 reporting
• STP Phase 2 help and support resources

Contact us today to learn more about how we can help your business reach the highest level of growth through safe outsourcing.

If there’s a silver lining to COVID-19, it’s that it made Australian businesses recognise that you can still successfully – if not better operate your businesses without sacrificing its productivity and employee welfare.

The pandemic clearly accentuated the demand for outsourcing. The notion of looking globally to build a team and scale has become more accessible with the advent of technology.

Currently, migration is still recovering since the borders were re-opened thanks to the lengthy visa processes and high taxes, most businesses fear that the labour shortage will stifle the economy.

Since the golden goose was pretty much shot, the labour shortage will further drive-up inflation by triggering a wage surge thereby increasing the cost of goods and services.

National Australia Bank (NAB) being one of the big four lenders – established technology centres in India and Vietnam because they just couldn’t find local staff.

If this labour problem goes unresolved, the post-pandemic economic opportunity will be one that is wasted.

How outsourcing can fix the labour shortage in Australia

Enter VKonnect: we can be the solution for your business when it comes to overcoming the challenges of labour shortage. It’s a more cost effective and simpler way to handle additional/routine work in your company.

Here’s how we can fix it – and improve it:

Tap into the best talent pool

Usually, hiring local employees limits a firm’s capability to search for suitable talent for their roles. Outsourcing expands this by giving you access to a larger talent pool you can tap into even if they are miles away.

Get the right talent at the right price

We will take care of everything from hiring and managing a team to recruitment to certifications, on a subscription model basis.

Improved processes

Free up energy, time and resources and focus on your core business and leave the admin tasks to us. At VKonnect, we are very hands on with our clients’ outsourced processes to help replicate and scale them in the future.

Interested? Let’s talk! Leave us your details so that we can arrange a free consultation

Get a quote →

Running a restaurant is not easy, especially with the challenges the pandemic has thrown at the restaurant owners. They are already buried under a lot of operational challenges—generating enough revenue to keep the restaurant profitable, keeping up with health and sanitation requirements, adjusting to government-imposed business restrictions, responding to guest’s changing preferences, finding, training, and retaining staff, managing inventory, maintaining menu pricing and so on.

The restaurant owners are often forced to wear many hats, from CFO to HR officer. As if this workload is not enough, they are forced to look after their restaurant accounting as well. Even for the most seasoned, well-rounded restaurateurs, restaurant accounting is a daunting task.

It is time-consuming, time-sensitive, and requires accuracy – putting a lot of strain and pressure on you. It takes a lot of your time thus pulling you away from what you do best: Developing your business.

But the fact is that with the growing use of cloud technology and outsourcing becoming much more popular, accounting no longer needs to be your burden. The following are 4 advantages of outsourcing accounting services to a skilled provider.

1) Get the knowledge of experienced, tech-savvy bookkeepers

Accounting software keeps changing every day. Staying up to date on them while running your restaurant is hard. When you outsource your bookkeeping process to the experts, you will get access to the latest software and tools that are specially meant to streamline your accounting process.

Since accounting experts have a very good grip on the latest tools and systems, they can simplify the process by streamlining through automation. This is not possible if you do your accounting yourself. Moreover, since the outsourced partners work remotely, they use cloud technology to manage your books from any part of the world providing you a greater level of flexibility.

An outsourced bookkeeping team can recommend the best accounting software and tools for your business and can set it all up for you.

2) Control your restaurant’s financial performance

Outsourcing your bookkeeping to trained professionals means your restaurant’s financial data is in safe hands and is always accurate and up-to-date. This gives you an insight into the performance of your restaurant business and allows you to track all transactions such as expenses and income and as a result, you will know the status of your cash flow instantly.

An outsourced bookkeeper can create customised reports to suit your individual needs thus helping you to take better and timely decisions. They can provide you with all the information about your sales tax during the tax time, and pay the tax on time avoiding costly penalties.

3) Saves you precious money and time

Hiring an in-house bookkeeper is expensive when it comes to payroll taxes, benefits, and wages. You can get outsourced accounting professionals with a similar level of knowledge and experience without the payroll costs. You can also get rid of costs associated with hiring, training, and managing employees.

By outsourcing you can use the time it would take to do bookkeeping on your own, into running and growing your business, your area of expertise.

4) Avoid Frauds

Unfortunately, fraud is a major concern of all businesses, especially in cash-heavy restaurants. Opportunities for fraud are more in the restaurant business. A professional bookkeeper not only knows all the regulations but can uncover fraud risks and bring them to management’s attention. Thus an efficient bookkeeper can save your restaurant from any potential frauds that stunt the growth of your restaurant business.

Planning to outsource your accounting & bookkeeping process? VKonnect is a reputed business process outsourcing (BPO) company based in Melbourne that specialises in providing outsourcing services to Australian businesses in a wide range of industries. We are experts in outsourcing business activities in areas such as accounting IT, administration, and customer services/support. Get a free quotation for your accounting & bookkeeping needs today.

Get a quote →