You urgently need to put accounting on outsourcing, if …
Main objective for each business owner and manager is to make his business as efficient as possible. This implies growth of revenues and cutting company’s running costs. How can you curtail expenses on running your business?
Real legal opportunity to reduce costs
Over the years economy has developed various ways to reduce costs. One of the best time-proven solutions is outsourcing of business processes.
The word “outsourcing” comes from English. In translation it means “use of external sources”. It is assumed that the first outsourced process was transfer of rewriting books of Holy Scripture to outside copyists. This was done by the Venetian monks in the XV century. They estimated that economically it was much more profitable to pay for a specific job than to maintain a large number of their own copyists at the monasteries. A year later, after carrying out a cost analysis, the clergy was reinforced in the view that such strategy was correct.
Turn of the 20th and 21st centuries gave a new rise to the development of outsourcing. At first, outsourcing was established in the manufacturing. Access to the cheap labor in Asian countries has led to relocation of production premises to these countries. Outsourcing companies were forced to ensure high quality of their services in comparison with the performance of in-house staff. Without this, outsourcing processes could not be developed.
By the second decade of the XXI century, outsourcing has spread from commercial production to business processes that serve business.
The most popular outsourcing services are:
- formulation and keeping of accounting;
- HR management;
- legal support;
- supplies and procurement;
- warehouse and transport logistics;
- promotion and content management;
- external audit.
At present, outsourcing is getting to a new level. Processes that are meaningful for the company’s value are now transferred on outsourcing. attracting investment, brand development, communications with customers.
According to the forecasts, in 10 years a business company can be a conglomerate of outsourcing companies that generate profits to the owner on systematic basis and at high quality. Outsourcing companies take on certain business processes and are fully responsible for the quality of work.
In the future, the staff number of production company that outsources its work on, may not exceed 10 people, including secretary and personal driver. Profit-generating staff will be provided by the outsourcers. (At this point a business-oriented person starts calculating what level of expenses can be avoided based on this approach to the company organization). And what your company can get from outsourcing today?
Outsourcing of accounting
So, to-date a modern active company can start a gradual transition to the creation of “business on outsourcing”. One of the most proven and widely used in Ukraine approaches is outsourcing of accounting. It’s worth noting right off that the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, introduced in 2000, empowers company heads with the right to independently decide on the organization and keep up of accounting. Transfer of this function on outsourcing is fully lawful in Ukrainian legal framework.
How does it work and what are the benefits for the client?
Upon concluding a contract for outsourcing of accounting, company fully transfers solution of the following tasks to the outsourcer:
- development and implementation of accounting strategy;
- selection and support of accounting software;
- reconstruction of accounting;
- keeping current tax and accounting records;
- preparation of the established financial statements and their timely submission;
- continuous optimization of tax and other charges;
- solution of issues emerging with representatives of tax authorities.
Together with accounting function, the outsourcer assumes full responsibility for the timeliness and quality of the work performed.
Client company reduces its expenses for such cost items:
- reduction in the number of full-time staff allows minimizing taxes associated with the number of hired employees;
- cost of search, selection, and retention of staff;
- cost of wages, vacation pay, sick leave, corporate compensations and social benefits;
- cost of staff training in ongoing updates and innovations in accounting policies and changes of current legislation;
- equipping workplaces for full-time staff;
- utility costs for providing workplace (rent of premises, electricity, water, heating);
- expenses for acquisition and maintenance of computer and office equipment, software products for accounting and reporting;
- optimization of expenses for IT staff which supports continuity and high quality of accountants’ work.
- costs for purchase of stationery, and special literature.
As experience shows, outsourcing of accounting allows company to save up to 50% on expenses related to the organization and keeping of company accounts!
Statistical data confirm efficiency of outsourcing of accounting for companies at all stages of their development:
- beginner entrepreneurs who placed accounting in hands of professionals minimize risks and release funds for establishment of the basic business processes;
- companies that are moving to a new stage of development will be able to save significantly on tax optimization proposals by outsourced professional and successfully overcome this transition;
- in the unstable business environment and overall cost minimization trend, large companies should consider expedite transition to outsourcing of accounting in order to reduce costs, create a sound sustainability and further development strategy with the aid of professional advice (engagement of expensive professionals in the permanent staff does not mean a guarantee in such situations, since they are rather process than result-oriented).
How to choose an outsourcer?
When express decision is made on outsourcing of accounting, it’s time to proceed with selection of specific outsourcer.
Our long-term experience in this area has been successfully proven and brought a lot of dividends to our clients.
Our clients have chosen us and are working with us because:
- We are reliable. Every client knows that we are a tower of strength for him.
- We are available. You can apply for a one-time service or consultation. We will readily come and help you in any situation.
- We provide a wide range of services: from complete comprehensive support to one-time consultations in legal, cash accounting, or tax matters.
- We offer favorable terms of cooperation to each client. Flexibility in working with clients is our specific advantage. A permanent, temporary, one-time service or a specific set of tasks – everything is in our hands.
- We provide a guarantee for all types of services. This means that we take full responsibility for the quality and timeliness of the services ordered. High quality of work and abiding by the agreement is respect of the partner and living up to reputation.
If you are ready to apply for our help, please send your inquiry to the email address:
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