Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Accountants warned on offshoring admin work

While outsourcing SMSF administration work and other aspects of operations is common practice for accounting firms, one local provider has warned about the risks of sending clients’ data offshore.

Professional Development Lara Bullock 22 May 2017
— 1 minute read

Superfund Wholesale director Kris Kitto urged accountants to reconsider sending their clients private financial data offshore for admin work.


Mr Kitto said that while offshoring is legal, it can be significantly more complex compared to outsourcing to a business that stores all data locally.

“Despite the remarkable power of cloud technology, on the flip side data is potentially more vulnerable with a higher likelihood of security breaches,” Mr Kitto said. 

Mr Kitto said while offshore outsourced providers will have their own data security policies, outsourcing overseas adds another layer of complexity to security, especially if a breach occurs.

Offshoring also brings with it significant reporting requirements to the Accounting Professional and Ethical Standards Board (APESB) and the Australian Securities and Investments Commission (ASIC).

APESB and ASIC require adequate disclosure of the activities you will outsource, the service provider, how you will monitor the provision of service, and who will do the monitoring and how often.

Accountants warned on offshoring admin work
image intro
accountantsdaily logo

The Accountants Daily 30 Under 30 Awards
This prestigious awards ceremony is the benchmark for excellence, recognising the industry’s most distinguished professionals, aged 30 and under across Australia, highlighting their outstanding achievements and dedication within the industry. Register to the waitlist today to be first in line for updates on when tickets to attend become available, visit accountantsdaily30under30.com.au to join the waitlist.

Professional Development