Australian Small Business Guide to Virtual Accountants

 

Hi, I’m Zoe Hadley, and I’ve been working as an accountant in Australia for over 35 years. During this time, I’ve worked with a wide variety of business owners from café owners and boutique retailers to tradespeople and startups. One thing I’ve seen repeatedly is that managing finances can be stressful, especially when you’re juggling invoices, expenses, payroll, and compliance.

In recent years, virtual accountants have become a lifeline for many small business owners. They provide professional financial support remotely, so you can focus on running your business without worrying about paperwork. In this guide, I’ll share my experience with virtual accounting, explain the services they offer, and highlight why integrating payroll into your system is crucial.

Why Virtual Accountants Are Becoming Essential

Running a business is challenging enough without having to worry about numbers constantly. Many small business owners I work with spend hours every week reconciling invoices, tracking expenses, or calculating payroll.

Take a café owner I worked with in Sydney. She told me, “Zoe, I love running my café, but I spend more time crunching numbers than serving my customers!”

This is where virtual accountants come in. They allow you to:

• Keep on top of cash flow
• Ensure invoices and expenses are accurate
• Stay compliant with Australian tax laws
• Streamline payroll processing

By outsourcing financial management virtually, business owners regain time, clarity, and peace of mind.

As a trusted bookkeeping outsourcing company, Globus Prosourcing helps small and medium businesses gain clarity, accuracy, and peace of mind with tailored bookkeeping solutions. Whether you need ongoing support or a full financial cleanup, Globus Prosourcing ensures your books are always in perfect shape  saving you time and protecting your profits.

What Virtual Accountants Do

A virtual accountant can handle almost all aspects of your finances remotely, using cloud-based tools. Here’s what they usually offer:

1. Bookkeeping and Expense Management

They can manage your daily bookkeeping tasks, including:

• Recording invoices and payments
• Categorizing and reconciling expenses
• Generating financial reports

I’ve seen trades businesses use virtual accountants to automatically reconcile job expenses and track cash flow. Staff could submit receipts online, which the accountant reviewed and recorded promptly. This system eliminates lost receipts and reduces errors, giving business owners a clear view of their finances.

2. Invoicing

Virtual accountants can also manage your invoicing process:

• Creating and sending invoices to clients on time
• Following up on overdue payments
• Tracking outstanding balances

One boutique retailer I worked with had late payments impacting cash flow. After outsourcing invoicing to a virtual accountant, invoices were sent promptly, and reminders were automated. Payments became more predictable, and the owner could focus on sales and customer service.

3. Payroll Services

Payroll is closely tied to bookkeeping and invoicing, yet many small businesses overlook it. Virtual accountants can manage payroll completely, including:

• Calculating employee wages according to awards, agreements, or contracts
• Paying superannuation on time
• Tracking leave entitlements, including annual, sick, and long-service leave
• Withholding PAYG tax accurately
• Submitting reports via Single Touch Payroll (STP) to the ATO

I’ve seen business owners outsource bookkeeping and invoicing but neglect payroll. Mistakes in payroll can cause unhappy employees, cash flow issues, and errors in BAS reporting. Coordinating payroll with expenses and invoicing ensures smooth operations and compliance.

For example, a café client I worked with had inconsistent payroll reporting, which complicated BAS preparation. Once we integrated payroll with bookkeeping and invoicing, everything aligned perfectly, and she never missed super payments again.

4. BAS and Tax Preparation

Virtual accountants can also handle:

• BAS (Business Activity Statement) preparation and lodgement
• GST reporting and reconciliations
• Income tax planning and lodgement for your business

This is crucial because having accurate records for BAS and tax ensures compliance with the ATO and avoids penalties.

How to Find the Right Virtual Accountant

Choosing a virtual accountant requires careful consideration. Here are my tips:

1. Experience Matters – Look for accountants familiar with Australian small businesses, BAS, GST, and payroll.
2. Software Integration – Ensure they can work with your accounting software like Xero, MYOB, or QuickBooks.
3. Communication – Regular updates and clear communication are key to staying informed about your finances.
4. Full-Service Options – Coordinating bookkeeping, payroll, and invoicing in one place is often the most efficient approach.
5. Start Small – Test a service with a few tasks before outsourcing everything.

Real-Life Stories

Here are a few examples from my experience:

• Café Owner – She spent weekends reconciling receipts and managing payroll. After hiring a virtual accountant, invoices and expenses were handled online, and payroll was automated. She finally had time to focus on her customers.
• Trades Business – Staff often lost receipts on-site. Using a virtual accountant with expense-tracking tools, every receipt was captured digitally and reconciled promptly. Cash flow was clearer, and the business owner could plan jobs more effectively.
• Boutique Retailer – Delayed invoices were affecting cash flow. Outsourcing invoicing and expenses to a virtual accountant streamlined payments, allowing the owner to concentrate on growing the business.

These examples show that virtual accounting is not just about numbers it’s about freeing time, reducing stress, and giving clarity.

Benefits of Using a Virtual Accountant

When small businesses work with virtual accountants, I often see these benefits:

1. Time Savings – Less time spent managing invoices, expenses, and payroll manually.
2. Accuracy – Professional oversight and automation reduce errors.
3. Better Cash Flow – Timely invoicing and accurate expense tracking improve payments.
4. Stress Reduction – Business owners can focus on what they love instead of paperwork.
5. Compliance Confidence – Accurate records simplify BAS, GST, and payroll reporting.

Choosing the Right Tools

Virtual accountants often use cloud-based platforms to manage finances efficiently. Some popular choices include:

• Xero – Great for small to medium businesses, with invoicing, expense tracking, and payroll features.
• MYOB – Popular with Australian businesses, especially for payroll and BAS reporting.
• QuickBooks Online – Easy to use and integrates with many apps for invoicing and expense management.

Integration is important. When your accountant and software work together, tasks like payroll, invoicing, and expenses are handled seamlessly.

Final Thoughts

After 35 years as an accountant, I’ve seen small business owners struggle with finances, often feeling overwhelmed and stressed. Virtual accountants change this. They handle invoices, expenses, payroll, and BAS reporting remotely, giving business owners time, clarity, and peace of mind.

Whether you’re a café owner, a boutique retailer, or a tradesperson, a virtual accountant can make your finances organized, accurate, and stress-free.

At the end of the day, virtual accounting isn’t about losing control it’s about taking control of your business, your time, and your financial future.