Outsourcing of accounting

Outsourcing of accounting is a special case of business processes outsourcing and one of the methods of accounting for the activities of an enterprise. The Financial Chain Corporation https://ru.f-chain.com/en/ provides the transfer of functions related to the organization, accounting and reporting at the enterprise outside the company, transferring them to an outsourcer for execution. Unlike accounting services provided by external contractors, accounting outsourcing is a form of interaction in which an external company is included in the business processes of the client company as an integral functional unit, while remaining organizationally and legally independent.

In the field of outsourcing note that along with the transfer of certain financial functions, the execution of which by the outsourcer often occurs on a daily basis, management of these functions and processes is usually transferred.

Accounting outsourcing at Financial Chain Corporation

Outsourcing of financial functions in general, and accounting in particular, is one of the most difficult forms of business process outsourcing. The reason for this is the need to manage several business processes at the same time, for which managers often lack managerial experience. In addition, outsourcing of financial functions related to financial management, accounting and reporting of an enterprise implies the outsourcer’s access to information and documents that may represent a trade secret. In addition, a number of factors hinder the widespread adoption of outsourcing. The problem is the lack of a regulatory framework. The parties conclude contracts, guided by the all-Russian legislation and common terminology. These agreements are far from always drawn up correctly. Even less often, they take into account the specifics of the activity and the nature of the relationship between the client and the service provider.

Accounting is not something that the company’s management wants to think about, and on which the business is happy to spend time and money.
Accounting outsourcing is most often thought of in the following cases.

First, if there is a clear problem:

  • the accountant unexpectedly quit or went out of order during the reporting period;
  • the tax authorities, through the fault of the accounting department, fined the company or blocked the current account;
  • employees or contractors started to complain about the accounting department;
    the accountant got caught in fraud.

The first impulse of the director – to look for another chief accountant – is replaced by sober reasoning: will the new person be better than the previous one? Isn’t it time to change something radically: henceforth not to depend on a particular accountant, on his knowledge and sentiments, and not to solve personnel and organizational issues related to accounting at all? So an alternative arises – to find a trusted accounting company.