Accounting outsourcing as an ally in financial control (Part 2)

In our previous article, we mentioned that a managerial trend is to focus the efforts of a company on its core business and to delegate supplemental tasks, such as accounting management, to third parties. In this process, businesses turn to professional firms and, if the service provider selected is the right fit, it can become an ally in financial control.

Moreover, one of the practical reasons for outsourcing the accounting process is to control company costs, considering that the fees for such service are determined based on the volume of transactions conducted by a company; i.e., fewer transactions mean lower costs, but these costs are gradually increased as the volume of transactions increases.

Now, one of the success factors in an outsourcing process is choosing the right provider. In this regard, we must take into account that a poor choice may lead to a loss of both time and money for a business. For such reason, it is essential to carefully assess the following qualities in potential providers:
  • A proven track record in the accounting and consulting services market and professionals with impeccable reputation.
  • A team of professionals with a solid academic and humanistic background.
  • A client portfolio with local and international presence.
  • A demonstrated commitment to fulfilling services, such as timely financial reporting and tax filings.
  • Continuous investment in technology and innovation aimed at achieving efficiency in information processing and reporting.
  • Quality certifications for its information security and processes.
These qualities are just a few aspects to consider before choosing the firm that will support your business in the crucial task of delivering reliable, relevant, and timely information for Management.
From another perspective, beyond focusing Management’s efforts on the core business, outsourcing can be an alternative to solve the issues that many companies face, as in the following scenarios:
  • Companies with accounting practices that do not align with current accounting principles and standards (IFRS), where a tax framework is used to prepare the financial statements. Such accounting does not reflect the reality of the business and is not suitable for financial planning purposes.
  • Companies with outdated accounting records, delayed for months or even years. Management lacks timely information for decision-making, and there are higher costs associated with updating the accounting books in case these are requested by the Tax Authority.
  • Companies that incur significant tax penalties due to failure to opportunely meet tax obligations, as well as an increased risk of making errors in tax calculations and during tax audits.
The above are some examples of companies that carry a “very heavy load” due to inadequate accounting management. These deficiencies can be overcome by hiring the right outsourcing firm. 

There are countless benefits that outsourcing the accounting process can bring to businesses, such as streamlining and modernizing processes, reducing tax risks, and providing timely information for decision-making. Do not hesitate; consider this option for your company.

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