By Lachlan Grant the CEO of Vital Addition
The way businesses manage their finances is changing. Or at least, it should be. Yet according to our latest survey, 75% of Australian businesses have never even considered outsourcing their finance function. And 67% outsource less than a quarter of it.
In other words, most Australian businesses are managing their entire finance operations in-house, and often with lean, overstretched teams. In a market shaped by talent shortages, rising costs, and the need to scale lean, these numbers signal a missed opportunity.
Outsourcing is no longer just about cutting costs. It’s about building resilience, accessing up-to-date expertise, and scaling with more confidence and less friction.
The case for finance outsourcing in 2025
Let’s start with what’s changing.
Small and mid-sized businesses are facing pressure from all sides. Wage costs are rising. The compliance burden is heavier. Systems need to evolve quickly. And experienced finance professionals are getting harder to find. In that environment, relying entirely on an in-house team (no matter how dedicated) isn’t always the most effective option.
Meanwhile, cloud technology and remote collaboration tools have transformed how finance support can be delivered. Businesses can now access specialist teams, tools and reporting systems without needing to hire full-time, in-house staff. That’s a huge shift, and one that many haven’t fully explored.
Why aren’t more businesses outsourcing?
Some business leaders and founders worry that outsourcing means losing control over their finances. Others assume it’s only viable for large companies. Then there’s the issue of trust, particularly for business owners who have never worked with outsourced partners before.
These are common concerns, but they’re not always well-founded. In fact, many are based on old assumptions:
- Cloud-based platforms make financial visibility and collaboration easier than ever.
- Outsourcing can start small, with specific tasks like payroll or BAS preparation.
- Providers now cater specifically to Australian SMEs, with services tailored to local needs.
When done right, outsourcing actually increases control by freeing up business owners to focus on strategy, delivery, and growth.
The hidden costs of staying in-house
Our survey didn’t just find low levels of outsourcing. It also found signs of strain within internal finance teams:
- Only 12.5% of respondents said they were very satisfied with their current systems.
- Less than half felt confident that their systems could support future growth.
- Despite cash flow being the top capital-raising challenge (57% named it their biggest issue), only 37.5% of respondents said cash flow forecasting was very important.
These indicators suggest a growing gap between what businesses need from their finance function and what their current setup can deliver. Many are still relying on outdated systems, fragmented processes, or manual reporting. That ‘old way’ of working might feel familiar, but it comes with real risks; slow turnaround times, siloed information, and limited visibility into future performance.
When finance is stretched too thin, or stuck maintaining legacy processes, forecasting becomes reactive, reporting gets delayed, and strategic decisions are made with incomplete data. That’s not just inefficient, it’s risky, especially when the market moves quickly and margins are tight.
What outsourcing can unlock
Outsourcing is not a silver bullet. But when aligned with a business’s goals and growth stage, it can create meaningful operational advantages.
1. Access to skills you may not have in-house
A qualified bookkeeper or finance lead might be able to keep things ticking, but outsourcing gives you access to broader expertise: forecasting models, investor-ready reporting, cash flow analysis, tax planning, and more. This is particularly valuable for businesses that need high-quality input but can’t justify a full internal team.
2. More time for high-value work
Most business owners didn’t start a company to reconcile receipts. Outsourcing routine finance tasks like bookkeeping, accounts payable, or payroll can reclaim time for strategic work—like refining business models, engaging customers, or exploring new markets.
3. A scalable model
As your business grows, your finance function needs to grow with it. Outsourced support can be dialled up or down depending on what’s needed. You might bring in extra help for funding rounds, reporting periods or audits, without needing to go through a lengthy hiring process.
4. Cost control and predictability
Hiring is expensive, especially when you include superannuation, leave loading, training, and overheads. Outsourced finance support often comes at a fixed monthly cost, giving you greater visibility over spend. In today’s economic environment, predictability is an advantage.
5. Up-to-date systems and thinking
We’re seeing more finance professionals opt for portfolio-style careers, working across multiple businesses to broaden their skill set. These team members bring current thinking, exposure to modern systems, and a sharper focus on results. They’re also more likely to push for efficiencies, because the value they deliver directly shapes their client base.
In contrast, in-house teams can sometimes fall into patterns. That’s not about individuals, but about incentives. When your role is defined by routine, you’re less likely to reimagine it. Outsourced teams are structured differently. They succeed by being efficient, adaptive, and forward-looking.
When outsourcing doesn’t work
There are times when outsourcing isn’t the right move. If your systems are fragmented or undocumented, it’s harder for an external team to step in effectively. And if you need someone on-site daily for hands-on tasks, outsourcing may not be practical.
But most of these issues can be addressed:
- Clear processes and shared dashboards help create transparency.
- Weekly check-ins and open access to reporting platforms maintain strong communication.
- Security concerns can be managed by working with providers who follow Australian data privacy regulations and use encrypted systems.
What to outsource (and when)
You don’t have to outsource everything at once. In fact, a common pathway is starting with one function:
- Payroll: Streamlined and compliance-heavy, it’s an ideal place to test outsourced support.
- BAS or tax prep: High-stakes tasks that benefit from up-to-date knowledge.
- Bookkeeping and reconciliations: Easy to hand off, and time-consuming to do manually.
From there, businesses often expand support to include budgeting, forecasting, and even CFO-level advice.
The Bigger Picture
Outsourcing won’t suit every business, but for many, it’s an underused lever for better performance. It’s also one of the simplest ways to build flexibility into your operations, without sacrificing control.
When finance is stuck in a reactive cycle – chasing reports, fixing errors, and struggling to keep up with compliance – it can’t support business strategy. Currently many finance teams are expected to do more with less. That pressure isn’t going away. If anything, it’s increasing as businesses grow and economic conditions stay uncertain.
But when finance is efficient, insightful, and well-resourced, it becomes a growth driver. It strengthens finance capability, sharpens decision-making, and frees founders and leaders to focus on what matters most.
Above cost savings and time wins, outsourcing can unlock a step-change in how finance contributes to the bigger picture.
The revolution is already underway, so it might be time to question what outsourcing can look like for your business or organisations.
For Australian businesses navigating economic uncertainty, that kind of shift is more valuable than ever; it’s exactly the kind of edge many businesses need now and moving forward.
