Accounting outsourcing

Outsourcing of accounting services means essentially a transfer of the functions of the in-house accounting service to third-party specialists. The point of outsourcing is to move non-core functions outside the company by entrusting accounting processes to professional accounting service provider https://kz.f-chain.com/en/.

We will try to tell you about all the advantages of accounting outsourcing and its benefits for business owners and the company as a whole.

Why do you need outsourcing of accounting

Accounting outsourcing is often seen as a way to optimize ongoing accounting costs. The most recent research from Deloitte shows that the main reason for outsourcing is the need to reduce accounting costs. This was the answer of 70% of the surveyed respondents (Source: Deloitte Global Outsourcing Survey 2020).

But if earlier outsourcing of accounting was considered solely from the point of view of saving on full-time accounting, now they turn to it in order to achieve competitive advantages, reduce financial risks. Most importantly, outsourced accounting allows business owners to focus on the business.

The main advantages of outsourcing accounting are the following.

1. Operational efficiency

Accounting outsourcing is a mechanism consisting of highly qualified employees: chief accountant, accountants, internal auditors, treasurer and other specialists. Well-functioning internal control in all areas of the accounting department excludes errors and the risk of additional charges.

2. Lack of staffing problems

The transition to outsourcing frees the business from total dependence on the full-time chief accountant. When outsourcing, there are no such situations as: the chief accountant fell ill, the accountant went on maternity leave, the payroll calculator is on vacation.

3. Quality of accounting and reporting

The main feature of outsourcing companies. But keep in mind that only large outsourcing companies can provide quality. The quality of service is made up of several components: employees, distribution of functionality, automation of accounting processes, and even a proactive position in relation to tax planning.

4. You pay for what you get

The client of an accounting outsourcing firm always clearly understands what service and in what volume he ordered, how much it costs, and what he will receive “at the end”.

5. Financial guarantees

Leading outsourcing companies insure their professional liability. The amount of insurance is calculated in tens of millions of rubles. Insurance is needed in case the client has lost his money due to an outsourcer’s mistake (in the form of additional charges, fines, penalties, etc.). This is one of the key advantages of outsourcing accounting over a full-time accountant.

Who is accounting outsourcing for?

Let’s start with the fact that the target audience for which outsourced accounting services are suitable is “white” business, companies that conduct real activities and submit “white” reports.

Startups

It is obvious that at the very beginning of its activity, during the period of rapid development of the company, one must fully devote oneself to the development of the business. Accounting outsourcing gives you the opportunity to devote yourself to debugging business processes without being wasted on auxiliary functions. At the same time, startup owners can rest assured about the quality of accounting.

Foreign business

Outsourcing of accounting is a common phenomenon abroad, its benefits for business are obvious and calculated. Therefore, foreigners are happy to entrust accounting to accounting function providers. Moreover, when opening a Russian subsidiary, it is easier for foreign businessmen to entrust accounting, tax and salary calculations to professionals than to dive into the intricacies of Russian legislation, accounting and the specifics of business processes.

SMEs

Remote accounting for individual entrepreneurs and microfirms is the right solution, since it will be difficult to fully load a full-time accountant, and it will be expensive to fully pay for his work. A third-party private accountant at a remote location is also not an option. Such accountants, as a rule, single-handedly serve hundreds of firms. It is definitely not worth expecting from them a high-quality result and protection from tax risks.

Small and medium enterprises

Outsourced accounting support will optimize costs. You will not have to maintain bloated full-time accounting, where some of the employees are underutilized, while the other suffers from overwork (which, by the way, must be paid for).

Holdings

For large and complex businesses, outsourcing of accounting areas is relevant. As a rule, the most routine and labor-intensive. These companies benefit from savings in infrastructure and lower operating costs.

Companies that conduct specific activities. It happens that the activities of a company require specific knowledge of the intricacies of accounting and legislation. It is difficult and expensive to find a narrow specialist for the staff. It is more profitable to find an outsourced accountant. Outsourcing companies always have narrow specialists with experience in supporting specific firms.