Outsourcing of accounting services as a savings opportunity at a company

The word outsourcing originates from three words: outside-resource-using. It stands for the use of external resources. In other words, outsourcing involves entrusting individual business processes to external entities.

Although the main areas that outsourcing is focused on include IT, human resources management, training, recruitment of employees, customer service, auxiliary operations and logistics, the actual range of entrusted processes depends solely on the needs of the company that, in order to focus on the essence of its business, requires the support of an external company specialized in a particular field. Accounting services is one of the areas of operations most often contracted to external companies. Outsourcing of accounting brings many benefits and is especially cost-effective for small and medium companies in the case of which maintaining own accounting department would be unprofitable.

OUTSOURCING AS A SOURCE OF SAVINGS

Above all, outsourcing of accounting means reduced costs of business activity. When contracting a set of accounting services from an external entity, the business owner does not have to invest in the purchase of tools essential for managing own accounting department. As a result, they eliminate the need to spend funds on computer equipment, operating systems, utility and protection software as well as specialist accounting and HR software. When establishing a cooperation with an outsourcing company, we also do not have to think about costs of personnel, including the accountant’s remuneration and their (health and insurance) contributions or training. Outsourcing also makes it possible to nullify the logistics costs incurred on stationery and maintenance of space used for storage of accounting, payroll and HR documentation (both in physical and virtual form) and its circulation. When deciding on outsourcing their accounting, the business owner pays fixed flat-rate, monthly fees that can be booked against the costs of their business operations. The use of services of other companies also lowers the risk of financial penalties imposed on the company due to eventual irregularities in the company’s accounts. Although errors made by an outsourcing company seem unlikely, even when such errors happen, the financial liability is borne by the accounting firm providing the service.

ADVANTAGES OF OUTSOURCING

The main advantages of outsourcing of accounting services include, among others:

• the possibility to concentrate on the essential goals of business activity,
• maintaining a lower level of employment and, at the same time, being certain that general tasks are handled by qualified personnel,
• ensuring the highest quality of services based on the experience and specialty of the service providers,
• lower investments on maintaining technical and organizational base of the entrusted tasks,

You can read more on this subject in the article published some time ago about the five advantages of outsourcing of accounting.

Author: Natalia Pietrasik, accountant at the MDDP Outsourcing office in Warsaw

Sources:

https://mddp.venti7.e-kei.pl/outsourcing-uslug-ksiegowych-szansa-na-oszczednosci-w-firmie/