12 Questions to Ask Before Hiring an Indian Bookkeeper for Your Australian Business

A legitimate ICAI-registered firm will share their FRN immediately. Verify it on the ICAI public register at icai.org. Do not accept "we are qualified accountants" without the registration number — this is the single most important verification step. See our full ICAI qualification guide for what ICAI registration means.

Good answer: "Our FRN is XXXXXXX — you can verify it on icai.org."
Red flag: Vague response, no FRN provided, or claims of equivalent qualification without ICAI.

Ask specifically: will a qualified CA supervise the work? What is the qualification level of the person doing the day-to-day bookkeeping? A CA-supervised team with semi-qualified staff doing entry-level work is fine. Completely unqualified staff with no CA supervision is not.

Good answer: "Your account will be handled by [name], a CA finalist, supervised by our partner [name], who is a qualified CA with X years of experience."
Red flag: "We have a team of experienced bookkeepers" with no mention of qualifications or supervision.

Xero Advisor Certification and MYOB Accountant Certification are free online — any firm working with Australian clients should have these. Xero Partner status (requires multiple certified staff and a client base) is a stronger indicator. Ask for the certification number or Xero partner listing URL.

Good answer: "Yes, we are Xero Certified Advisors — you can find us in the Xero Partner directory."
Red flag: No certifications or "we have used Xero for our clients."

Minimum 10 current Australian clients for general bookkeeping and BAS. For specialist services (NDIS, legal trust accounts, mining payroll), ask for clients in your specific sector. Ask how long the longest-running client has been with them — a firm with clients of 5+ years is demonstrably reliable.

Good answer: "We have 25 current Australian clients across construction, healthcare, and retail. Our longest-running Australian client has been with us 7 years."
Red flag: Fewer than 5 Australian clients, or claims of experience without specifics.

Test with your specific complexity. If you're in Queensland and need QLD payroll tax returns, ask directly. If you have NDIS clients, ask about SCHADS Award payroll. If you're in construction, ask about subcontractor PAYG. The answer should be specific and detailed, not "yes, we can handle Australian requirements."

Good answer: Specific, detailed answer demonstrating knowledge. "Yes, QLD payroll tax — we file monthly QRO returns and prepare the annual reconciliation due in July. We monitor the A$1.3M threshold throughout the year."
Red flag: Generic "yes we handle all Australian requirements" without specifics.

Any established firm with happy Australian clients will provide references. Ask specifically for Australian clients in a similar industry or size to yours. If the firm is reluctant, ask why — and treat reluctance as a significant red flag.

Good answer: References provided within 24 hours, clients willing to take a call.
Red flag: "We can't provide references due to confidentiality" (legitimate firms can ask a client's permission). No references at all.

The only acceptable answer is cloud browser only. Your Indian bookkeeper should access Xero, MYOB, Dext, and any other system via a web browser login — no data is downloaded to local devices. Any firm that downloads client data to their own servers or staff laptops creates unnecessary data exposure under the Australian Privacy Act.

Good answer: "We access all client systems via browser only. No client data is downloaded to our systems."
Red flag: Downloads your data, exports to local Excel files, or cannot confirm browser-only access.

All staff should sign NDAs covering client confidentiality. The firm should be willing to sign a Data Processing Agreement (DPA) that satisfies Australian Privacy Act APP 8 obligations for overseas data handling. A firm unwilling to sign a DPA should not be trusted with Australian business or personal data.

Good answer: "Yes, all our staff sign NDAs. We have a standard DPA we sign with all Australian clients — we can send it to you."
Red flag: No NDA policy, or refusal to sign a DPA.

Get specific commitments in writing. Reasonable SLAs: transaction coding — same business day; bank reconciliation — 24 hours; BAS preparation — 3 business days before required lodgement; payroll — same day if received before noon IST; ad hoc reports — 1 business day. Any firm unwilling to commit to SLAs in writing will be difficult to hold accountable later.

Individual freelancers are a single point of failure. A CA firm should have team backup — a qualified substitute who can cover immediately. Ask specifically: "If my account manager is unavailable, who covers, and how quickly?"

Good answer: "We have a team of 8 staff — if your account manager is unavailable, your account is covered by [name] with no service interruption."
Red flag: "We will find someone" or "I handle everything personally."

Get a written scope of services and monthly fee. Ask what is included and what is extra. Common extras that should be included: BAS preparation, payroll, bank reconciliation, basic reports. Common legitimate extras: SMSF administration, trust accounts, Virtual CFO. Watch for very low prices (under A$400/month for a full-service engagement) — CA-supervised work at audit-ready standard cannot be delivered at prices that suggest unqualified staff.

ICAI-registered firms in practice should carry PI insurance. Ask for evidence. If the firm makes an error that costs you money — a BAS error, a payroll underpayment — PI insurance is what covers it. Firms without PI insurance leave you unprotected for their mistakes.

Good answer: "Yes, we carry PI insurance — I can share the certificate."
Red flag: No PI insurance, or "we are careful so we don't need it."