Details

The Differences

Our Fixed Price Accounting and/or Bookkeeping Packages include the following functions:

  • Lodgement of BASs
  • Preparation of annual financial statement (quarterly, monthly if required)
  • Ongoing E-mail support by a CPA for your tax & accounting queries
  • Xero subscriptions
  • Regular reconciliations (not including invoicing, bills, and/or payroll unless requested)
  • Regular review of your data and accounts by a CPA
  • AuditShield to cover unexpected professional fees associated with ATO audit (NEW)! Coverage starts from $10,000 per year.

The below comparison tables illustrate both quantitative and qualitative differences on a hypothetical scenario using Xero (cloud accounting system) fixed price package solutions as follows.

(Please note this guidance is for business clients only.)

Business turnover per year approximately$750,000 per annum
Transactions per month approximately 300-400 bank lines/month
Compliance Package approximately $599/month
Bookkeeping Package approximately $400/month

Quantitative Differences (Costs)

Description of Services Conventional Setup Global Hub
Compliance Package $7,188
Bookkeeping Package $4,800
In-house Accountant Annual Salary (Payscale data) $43,000
Superannuation for the in-house accountant (9.5%) $4,085
Accounting Software Subscription (Typical Price) $1,000 Included (Xero)
Annual Financials & Tax Return (External Accountant) $4,000 Included
Quarterly BAS Obligations (Typical Price) $1,500 Included
Tax Planning (Typical Price) $2,000 Included
Total $55,585 $11,988

Now that is nearly 80% reduction in your overhead costs. This cost effectiveness may be further enhanced by our tax planning advice!

Please note actual package quotations vary depending on the following factors:

  • Annual Turnover
  • Transaction Volume
  • Complexity of the business/accounting requirements
  • Activity statements frequency
  • Number of employees

Individual business circumstances are different. Therefore, the above illustrations should be taken as guidance only.

Qualitative Differences

Description Conventional Global Hub
Accountant Qualifications Not Regulated (In-house) CPA & Registered Migration Agent
Employee entitlement (for in-house accountant) Annual & Sick Leave Not applicable
Location At your office On cloud – You can be anywhere in Australia
Document management Paper On cloud with bank level security (Xero)
Language Generally limited English, Japanese & Chinese Services at NO EXTRA COSTS
Questions to Accountants Hourly Charge E-mail supports included in fixed price packages
Accounting Expense Hourly Charge Fixed Monthly – No Surprise

AuditShield covers professioal fees of at least additional $10,000 per year in the event of ATO audit/review.

Employee Visa Issues Not Covered In-house registered migration agent (Separate Quotation)
Work-life-balance for business owners Limited by time spent on regular bookkeeping More time in business and for your family
Expertise in other disciplines Limited Referrals available

Under our Xero cloud solution, the above case assumes the following:

Your responsibilities:

  • Raise invoices to customers and receive funds as required;
  • Pay to suppliers as they fall due including;
    • Your suppliers and employees;
    • ATO;
    • Superannuation Guarantee for employees;
  • Payroll (although we can provide this service for additional fee)
  • Providing/uploading expense source documents to your Xero account;

Our responsibilities:

  • Reconciling transactions appearing on bank statements;
  • Debtor/Creditor reconciliations;
  • Quarterly activity statement preparation and lodgements
  • Preparation of annual financial statements;
  • Preparation and lodgement of annual business income tax return (with up to 2 associated individuals)
  • Annual tax planning (if required)
  • Liaising with ATO on your behalf (General correspondence only)
  • Responding to general accounting/taxation e-mail queries to the client

Specific Exclusions from the Fixed Price Coverage*:

  • ATO payment plan arrangement;
  • Assistance in relation to Payroll Tax;
  • Assistance in relation to Fringe Benefit Tax;
  • Assistance in finance and/or re-finance application;
  • Mergers & Acquisitions related assignments;
  • R & D Tax Offset
  • Financial Planning including estate and succession planning;
  • Insolvency related matters;
  • International tax matters including tax residency, dual tax treaty and transfer pricing issues;

*These services can be provided through hourly charge or referrals to relevant experts.

Other services not listed above can be provided on hourly based charge. For more accurate quotation tailored for your business, please contact us HERE.