What is accounting outsourcing and why should you use it?

Accounting outsourcing is an increasingly popular solution among companies that want to reduce costs, save time, and ensure that their accounts are kept in accordance with regulations. Instead of creating their own accounting department, entrepreneurs entrust these tasks to specialized external companies.

This approach allows you to avoid the costs of hiring, training, and purchasing software, while giving you access to up-to-date knowledge and expert support. Outsourcing can be profitable for both small businesses and companies with full accounting—provided that it is well suited to the specific nature of the company.

Outsourcing accounting services in a company – what is it?

Accounting is one of the tasks that every company must handle. However, there is no obligation to hire your own accountant. You can use the services of an external accounting firm.

Accounting outsourcing involves outsourcing financial and accounting tasks to external professionals. Of course, the company providing accounting outsourcing services must make a profit, but it is usually cheaper than hiring an exclusive professional.

Benefits for the company and financial and accounting outsourcing

There are many companies on the market that offer accounting outsourcing. There is considerable competition between them. This is one of the reasons why using accounting outsourcing is profitable.

Cost minimization

Professional accounting services for a company are expensive. It is necessary to hire a specialist or specialists, who are not cheap. The chief accountant must obtain a license, which is not easy. He or she is one of the most important people in the company and bears a huge responsibility.

Accountants must constantly update their knowledge and, in Poland, respond to rapid and sometimes nonsensical changes in the law that cause a revolution in tax settlements. In order to avoid putting the company in a difficult situation, they must participate in training courses, which incur additional costs.

The accountant's workplace is no longer just a huge ledger and a copying pencil. Nowadays, accounting requires the company to purchase professional computer software and keep it constantly updated.

These are just some of the reasons why outsourcing accounting services is cost-effective and increasingly popular.

Time savings

Accounting outsourcing can save you valuable time. It works a bit like a serviced office. You only deal with what you know, and financial matters are handled by an external accounting firm.

Similar to accounting outsourcing, a virtual office for companies is another service that allows you to optimize costs and focus on key activities. Thanks to a virtual office, companies obtain a professional registered address and comprehensive correspondence services without having to rent physical office space.

Support from professionals

Accounting outsourcing involves handing over all tax and accounting matters to professionals. This frees the business owner from having to keep up with all the changes in tax laws. Such matters are the responsibility of the external accounting service. They are responsible for this, and even if there are such ill-conceived and revolutionary changes in the law as in the past with the "Polish order," it is the accounting outsourcing company that has to worry about it.

The advantage of external accounting in this case is that it is the accounting service providers who cover the costs of training conducted by top-level professionals, often associated with tax administration. Thanks to outsourcing, companies contribute to the costs of such training.

How much does accounting outsourcing cost for different organizations?

Outsourcing accounting services obviously comes at a cost. Prices vary and depend on many factors. Generally, the most common price companies charge for accounting outsourcing is around PLN 500. But that's not the only cost. A lot depends on the scale and location. Some banks offer to transfer accounting services for free in exchange for opening a company account with them.

Various entities undertake accounting services for companies. This determines the amount that needs to be allocated to outsourcing accounting tasks. As we have already mentioned, some banks offer free accounting services. Entrusting accounting to a company from Warsaw will be more expensive than outsourcing accounting tasks to a company from a small town.

This distinction still exists, even though accounting services for a company can be provided completely independently of the location of the client and the contractor. The best proof of this is the fact that accounting outsourcing services are provided by companies from the other side of the world.

Many large corporations operating in Poland use external accounting services in India. In turn, there is no shortage of companies in Poland providing accounting services to entities from other continents. Entrusting accounting to an entity on the other side of the world is possible thanks to the digitization of services.

The cost of professional accounting services also depends on the legal form of the business. It will be different for a sole proprietorship than for a limited liability company or a joint-stock company. It also depends on the number of invoices issued.

What does the cost of the service consist of?

The price list for professional accounting services provided by a Warsaw-based company consists of a main fee depending on the scope of services provided. There are two basic rates: for full accounting and for the revenue and expense ledger.

The rest of the price list of a company providing accounting outsourcing services is based on the number of accounting operations performed each month, depending on the type of service, for example: a flat fee on recorded income, maintenance of the Tax Revenue and Expense Ledger, or VAT payer services.

What types of companies should consider outsourcing their accounting?

The fate of a company often depends on the quality of its accounting services. In the case of a small sole proprietorship, it is possible to attempt to do the accounting yourself. However, even in such a case, it is worth hiring at least a small accounting firm.

However, a more legally complex form of business should use accounting outsourcing. Even a small limited liability company must keep full accounts, and in such a case it is better to rely on professionals. Savings on accounting costs can, in the worst-case scenario, ruin a company.