Cost is an important factor when deciding how to organise accounting. Comparing the full expense of an in-house accounting department with outsourcing reveals many costs that do not arise under an outsourced model.
Advantages of outsourced accounting
- Lower costs
An internal department requires recruitment and hiring, personnel management, training, professional development, consultations, office space, furniture, secure document storage, equipment, software, specialist publications, salaries, taxes and social contributions. When all these items are compared with the price of a professional service agreement, the real potential saving becomes clear.
- Rational allocation of resources
A specialist provider can reduce costs through focused expertise while maintaining quality in a competitive market. Management can concentrate internal resources on the company’s core objectives instead of supporting functions. When accounting, annual accounts, tax analysis, document preparation and similar tasks are delegated to specialists, the company can direct more attention and resources to its main business.
- Reduced dependence on one person
The company is less exposed to risks associated with a single accountant, such as illness, accident, resignation, negligence or insufficient knowledge. A professional provider maintains continuity through a team. Its employees also have no personal interest in the internal affairs of the client, reducing risks that can arise from conflict, dissatisfaction or improper handling of confidential information.
- Quality
Two important strengths of a professional accounting company are the competence of its specialists and a modern, technology-supported process for record-keeping and reporting.
Professional accountants have broad industry knowledge, practical experience and relevant qualifications, and they continue to develop their competence. This enables them to handle assignments of different complexity. Modern systems also allow the provider to control the service process, identify inefficiencies and minimise mistakes. Continuous quality control is an integral part of professional accounting.
- Related services
Business activity regularly creates questions requiring knowledge of legislation, company organisation and financial analysis. It is useful to have a professional adviser who already understands the client’s company through ongoing accounting work. MG Alliance can assist with taxation, legal consultation and personnel-management matters aimed at improving efficiency.
- Contractual responsibility
Incorrect accounting may be discovered one or two years later, often during a tax inspection. Holding an individual former employee responsible can be difficult, particularly if that person no longer works for the company. When services are provided by a legal entity, responsibility for quality and deadlines is established in the service agreement.
Combined with the broad experience gained from working with many companies, this creates a strong balance of price, quality and responsibility.