Over the past decade, the accounting outsourcing market has grown nearly eightfold, which is not surprising since accounting is not a core activity for most entrepreneurs, and they prefer to delegate it to professionals. Most often, a full-time accountant (or even an entire department) is hired, but outsourcing reporting is no longer an exotic option.
But how do you understand what will be the best choice for you? Is accounting outsourcing always the best option? (Spoiler — not for everyone).
Let’s break it down.
According to research by Insignia Resources and Kimon Services, outsourcing accounting saves money. Reducing accounting costs compared to a full-time department can range from 20% to 60%. This depends on the company size, the scope of functions delegated, the region of operation, the number of transactions, and other factors. Each business is unique, and results can vary significantly, but for most entrepreneurs, outsourcing accounting makes economic sense.
A full-time accountant and outsourcing are not mutually exclusive options; they can complement each other. Often, companies delegate only certain types of reporting (payroll, tax reports) to an external provider, while keeping other functions in-house (e.g., handling primary documents). This optimizes outsourcing costs and allows a flexible service package tailored to the company’s profile. Additionally, this approach reduces the workload on the in-house accountant and lowers the risk of errors. The in-house accountant can also assess the quality of services provided by the outsourcer.
Clients often include consultations for in-house accountants (e.g., regarding legislative changes) in the service package, ensuring professional development of their own staff.
The risk of sensitive document leaks makes many entrepreneurs hesitant to outsource. However, data security practices are improving: an outsourcing company can work directly on the client’s server with specified restrictions, access audits, logging policies, secure channels, etc. Physically, documents remain on the client’s resources, and the risk of information leaks is the same as with an in-house accounting department.
Companies outsourcing their accounting receive not only a dedicated account manager but also support from a team of experienced specialists with expertise across various fields. Even if difficulties arise, there will always be a qualified accountant in the team to resolve the issue. This is why reporting quality in outsourced companies is often higher — access to multiple areas of expertise at once. Additionally, many companies use multi-stage report verification, minimizing the risk of errors.
Who is responsible for errors in reporting? Of course, the accountant. But ideally, the financial consequences of inaccuracies should not fall on your company. This is one advantage of outsourcing — the service provider pays fines for mistakes, legally stipulated in the contract. Any penalties from the tax authorities are no longer your concern.
Yes, this is a common problem for many outsourcing companies. Modern communication tools reduce client response time (we have a regulated response time of up to 30 minutes), but under normal conditions, an in-house accountant may respond faster.
However, since the start of the full-scale invasion, “normal conditions” do not apply. Many in-house specialists work remotely, often from other countries. So, in-house accountants may face the same communication challenges as outsourced teams.
“My accountant left, and I cannot reach them. Can you urgently take me on board?” — one of the most frequent requests since the full-scale invasion. For any business, uninterrupted accounting is crucial, and modern outsourcing companies ensure this.
All our employees have the necessary tools to stay in constant contact, so clients receive answers under any circumstances. Even if a specialist is on vacation, accounting continues without delays.
It is a good option to consider for most entrepreneurs. Advantages of outsourcing: it can be cheaper than an in-house accountant, reduces the workload on staff, protects from financial consequences of errors, and ensures high-quality service.
However, outsourcing can be financially burdensome for very small businesses, where the minimum service package constitutes a significant portion of monthly income. It is also less suitable for very specific areas requiring exclusive work with paper originals.
Conclusion: consider outsourcing if:
How to find out if Alfa Gold’s accounting outsourcing is right for your business? Fill out the form via the link and get a preliminary free consultation!
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