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Main advantages of outsourcing accounting services

Lidia KRYSTMAN
Accounting Semi-Senior at RSM Poland

Outsourcing is nothing other than allocating business processes in an enterprise and commissioning them to external companies, who are capable of carrying out these processes more effectively – this is the theory. But should we give such a delicate and important matter as accountancy into external hands? Taking into account the sector of small and medium enterprises – definitely yes. In the case of SME, accounting outsourcing has a significant advantage over internal accounting.

First of all, handing over accounting services to external companies unquestionably diminishes costs of business activity. Thanks to commissioning financial services to an outside entity, an entrepreneur doesn’t have to worry about purchasing IT equipment and indispensable accounting and payroll software, which is, after all, the main tool in work of an accountant. What is more, it is an external company that covers costs of personal administration, connected not only with salary or paying social contributions, but also costs of the accountant’s absence, as well as the costs related to recruitment, trainings, and costs of upkeeping a place where accounting, personal and payroll documents are kept. Moreover, it should be noted that savings can be also linked to economies of scale, which are used by outsourcing companies.

By handing over the bookkeeping, an entrepreneur will gain not only financial profits. An entity which offers accounting outsourcing perfectly knows how to find qualified and experienced employees. Thanks to it, an outsourcing company copes better with critical situations. Professionals who work in outsourcing companies are found on the job market after thorough and professional analysis. Outsourcing companies offer career opportunities and this results in technical development of employees, which later becomes a value-added for such an enterprise. It should be also stressed that the strength of employees of accounting offices is their diverse experience.

The next important advantage of outsourcing accounting services is limiting risk. The whole risk connected with accounting and tax errors, as well as penal and fiscal consequences are handed over by the external company. Penal and fiscal responsibility for possible accounting errors is taken off from the entrepreneur. Accounting offices have to be obligatorily insured against civil liability.

Summing up, accounting outsourcing let executives focus on their core business operations, without necessity to devote time to control the quality and effectiveness of the accountants’ work.

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At the end, I would like to stress that by handing over accounting functions to a big outsourcing entity, an entrepreneur benefits from another added value, namely a complex service. Big companies have a possibility to offer consulting provided by experts from different areas, e.g. law or taxes, whose knowledge and experience can be used by the client. Looking at different matters from numerous perspectives, interdisciplinary companies provide services which meet individual needs of each client. Companies that provide outsourcing services not only prepare basic obligatory annual financial statements, but also provide reporting services according to standards adjusted to the client’s needs. In the scope of their consulting there is managerial reporting as well, which helps the executives, controlling departments and owners of companies to assess financial situation of a company.

Taking into consideration the above-mentioned arguments, I think that entrepreneurs should get rid of any fears and start profiting from all advantages coming from outsourcing of accounting services, by commissioning bookkeeping to qualified accounting offices or big consulting companies that offer complex outsourcing of accounting services, reporting, tax compliance, VAT compliance, payments management and payroll.

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