For many Australian businesses, managing the books is essential but often expensive. Between salaries, superannuation, and technology investments, the cost of hiring a local accountant can quickly add up. That’s why more businesses are considering an offshore accountant as a viable alternative.
But how does the true cost of offshore talent compare with a local hire? Let’s crunch the numbers across salary, benefits, technology, and training.
Base Salary: Offshore vs. Local
The most obvious difference lies in wages.
- Local accountant (Australia): According to Seek, the average annual salary for an accountant in Australia is between AUD $70,000 and $90,000, depending on seniority.
- Offshore accountant (Philippines): A qualified accountant with international experience typically earns AUD $14,000 to $20,000 annually.
Straight away, the cost gap is significant—with savings of up to 70% by going offshore.
Superannuation and Benefits
In Australia, employers must contribute 11% superannuation on top of wages, plus leave entitlements and other statutory benefits.
For an accountant earning $80,000:
- Superannuation = $8,800
- Annual leave, sick leave, and public holiday costs = approx. $6,000–$8,000
In contrast, when you hire an offshore accountant, these obligations typically don’t apply. Instead, benefits are structured through the outsourcing provider or employment arrangement, leading to a far leaner overhead.
Technology and Tools
Both local and offshore accountants require access to cloud-based platforms like Xero, MYOB, or QuickBooks, along with secure communication tools.
- Local hire: Employers are responsible for supplying hardware, software licences, and IT support, averaging $3,000–$5,000 per year.
- Offshore accountant: Many outsourcing partners include hardware and IT support in their service fees. Software licences may still be a shared cost, but infrastructure responsibilities are minimised.
Training and Professional Development
Accountants need ongoing training to stay compliant with tax legislation and evolving accounting standards.
- Local hire: Courses, CPD requirements, and certifications often total $2,000–$4,000 per year.
- Offshore accountant: Many outsourcing providers invest in training as part of their package. While some additional compliance training may be required, the outlay is generally lower for the client.
The Intangibles: Speed and Scalability
It’s not just about cost. Offshore teams offer flexibility that local hires may not:
- Scalability: You can add extra accountants quickly during peak periods (e.g., EOFY).
- 24/7 support: Time zone differences can work in your favour for around-the-clock operations.
- Focus: Delegating routine bookkeeping offshore frees local staff for strategic financial planning.
Offshore Accountant vs. Local Hire: Cost Breakdown
- Cost Category
- Local Accountant (Australia)
- Offshore Accountant (Philippines)
Base Salary
- AUD $70,000–$90,000
- AUD $14,000–$20,000
Superannuation
- ~11% ($8,800 on $80k salary)
- Not required
Leave Entitlements
- AUD $6,000–$8,000
- Included in the outsourcing provider’s fee
Technology & Hardware
- AUD $3,000–$5,000 per year
- Often provided by the provider
Training & CPD
- AUD $2,000–$4,000 per year
- Lower or included in package
Total Annual Cost
- AUD $90,000–$110,000+
- AUD $16,000–$25,000
The Bottom Line
When comparing the true cost of a local hire vs. an offshore accountant, the savings are undeniable:
- Salary and benefits alone can cost three to four times more locally.
- Technology and training add further expenses when hiring in-house.
- Offshore arrangements provide flexibility and scalability at a fraction of the cost.
Flat Planet has supported Australian businesses in building accounting teams offshore, helping companies cut costs without compromising quality.
Hiring locally does come with advantages such as proximity, cultural alignment, and direct oversight. But for many businesses, especially SMEs looking to stay competitive, the numbers make a compelling case for considering offshore accountants.
