Australian tax office has huge database of information regarding the industry operations and have benchmarks of performance in various industries. They use various financial ratios in order to compare the performance of individual business with that of industry performance.
You need to ensure that you select correct industry code along with your tax return in order to ensure that you fall under correct business code.
These benchmarks are expectations of ATO from individual businesses and expect the same level of performance than that. Business operating out of benchmark may attract the attention of ATO.
For More Information Visit Us : Accounts Outsourcing Services
There is a recent buzz in F&A sector to outsource their complete accounting departments to professional Outsourcing Firms.
A Research report of “Global Services 100 Study” states that More than 55 percent of F&A contracts offshore F&A services to India. Of more than 20 leading F&A service providers tracked by Everest, 18 have delivery presence in India with close to 80 delivery centers when taken together. In recent years India has emerged as a buyer geography for F&A.
Total F&A Market in India is $12bn as per research by “Hfs Research group”
- There is a $2.6 bn market for engagements having a contract value of less than $25 mn as per the estimate of Hfs Research
- There is a $7.96 bn market for engagements having a contract value of more than $25 mn as per the estimate of Hfs Research.
F&A Market in India has developed in recent past and there are many developed players in India who compose
of The Accounts Outsourcing Market in India is yet to grow in India due to developing confidence in India.
As per a report India is the most preferred destination for outsource accounting services.
The main reasons for development of FAO markets in India are :
- Labour Arbitrage due to difference in cost of the people having same skillset.
- Availability of Skilled workforce in India and shortage of same in developed nations.
- Availability of English speaking work force in India Shift of organizational processes from manual to technology oriented.
- Availability of infrastructure, technology and high speed connectivity in developing nations.
- Implementation of Information technology laws in developing countries which prevent data misuse. Information Technology Act, 2000 in India helps in protecting the data in virtual environment.
- Time lag between eastern and western countries helps in updating data in almost half a day’s time. It helps in completing work in time deadline. For eg. Audit work or Deloitte US is transferred back and forth between Deloitte US and India helping in getting work done in tight deadlines.
- Reporting norms levelised at global level. (For eg. Emergence of IFRS and XBRL standards).
We at Rayvat Accounting Specialize in Accounting and Bookkeeping leveraging on cost difference between India and developed countries like Australia and United States.