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The Warsaw Voice » Business » April 29, 2009
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Accountancy Costs You Can Avoid
April 29, 2009   
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Outsourcing means commissioning a specialist outside firm to deal with certain strictly defined processes essential for any company to operate properly. In Poland, this trend first appeared during the economic transformation after the end of communism and now includes such business sectors as legal services, human resources and accountancy consulting.

In view of the great popularity of outsourcing and its advantages, such services are offered by both multinational corporations and small firms dealing with accounting. The clients are large companies but also small businesses for which having an outside partner to do the accounting means much lower costs—up to 50 percent lower. The important factor here is not having to pay for implementation, maintenance and updates of costly IT systems needed to handle accounting. This also means the company doesn’t have to hire specialists, pay their social insurance premiums or bear the costs of the training that is essential due to rapid system modernization and frequent changes to legal regulations. Working with an outside firm frees management from running an accounts department and overseeing the many formal issues involved. Very often, apart from their core services, outsourcing firms provide financial monitoring services as well, which means that apart from generating reports they also recommend corrective action to rectify any deviations from the financial plan. That allows management to work more effectively and focus on strategic issues. The main factor that makes a company decide to outsource is the expected cost reduction. However, one mustn’t forget about other benefits, such as risk reduction. An accounting employee is only partially accountable financially for their mistakes, while an outside firm has civil-liability insurance, so if mistakes are made it is able to pay high, even multimillion-zloty damages.

Growing competition on the market for these services is bringing prices down. That doesn’t mean service quality will deteriorate; on the contrary, quality will increase continually due to effective use of economies of scale and constant upgrading of qualifications.

Wojciech Kossut, Chairman of Towston Accounting Services Sp. z o.o.
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