Accounting outsourcing – understanding the cooperation with external service provider 

Keeping accounts while constantly facing rapid legal and tax changes is a challenge that is not easy to respond to. When hiring accounting department employees, traders must ensure their continuous professional development, because in this profession being up to date with all changes introduced by lawmakers is a must. The dynamics of these changes in recent years is particularly high. When we add to it time-consuming tasks such as invoice processing or preparation of reporting documentation, it turns out that significant resources are necessary.

According to a survey “Why do companies outsource?”^[1], traders decide to outsource accounting usually due to lack of sufficient resources within the organization, willingness to use the expertise and competences of the service provider and frequent changes in regulations.

Financial and accounting processes carried out in the company have an impact on the achievement of the company's key business objectives, which is why it is one of the key areas that requires high competence and ongoing response to the market situation and regulatory changes.

Understanding outsourcing of accounting services

Micro-enterprises and sole traders often use the services of small accounting offices that keep accounting for small-scale enterprises. However, medium and larger enterprises need comprehensive services, which are offered by specialized companies providing accounting services that also offer complementary services, such as tax consultancy, payroll and HR services or legal support. By working with an outsourcer, enterprises can delegate tasks such as keeping accounting books in line with Polish regulations, preparing tax returns, financial statements or accounting policies. Experienced providers of accounting outsourcing can also offer specialized services, such as VAT settlement for companies outside the EU operating in Poland or the service of a tax representative.

Accounting outsourcing – benefits

By entrusting accounting to an external firm, traders transfer their liability for correct implementation of tasks in this area to the outsourcer and thereby reduce their risk for meeting tax and accounting requirements.

Also, traders get a guarantee that accounting processes will be conducted in accordance with legal regulations in force, what - in an environment of frequent legislative changes - is of key importance. It is extremely important also in the case of foreign companies operating in Poland, which thanks to outsourcing gain a partner who is familiar with local regulations.

Another benefit is saved time that a trader would have to spend managing its own accounting team. An additional difficulty in running an in-house accounting department is the current situation on the labour market, which makes the recruitment and retention of competent specialists a great challenge.

Accounting outsourcing also provides access to technology, both professional accounting systems and solutions that optimize business processes. Providers of this type of services, who have a wide variety of clients, have the right know-how to organize and streamline operations.

Finally, thanks to cooperation with an outsourcer, traders can focus their attention on tasks that are crucial for their business.

What firms can most benefit from accounting outsourcing

Contrary to popular opinion that accounting outsourcing is used mainly by small and medium-sized enterprises, this solution is dedicated to all companies. No matter how long the company has been operating on the market, in which industry and how many people it employs. Professional company providing outsourcing services can present an offer tailored to individual client's needs.

Accounting outsourcing will be also right for international companies that operate in Poland. The aforementioned knowledge of local regulations, smooth adaptation to continuous changes and service in English are a great help for foreign entities operating in Poland.

Outsourcing can also be helpful in companies that have their own accounting departments, but need support in specific areas or in periods of greater work intensity. This solution is a partial accounting outsourcing. Typical areas subject to partial outsourcing are: preparation of financial statements, tax settlements, posting purchase invoices, posting general ledger transactions, preparing bank transfers.