Outsourcing the chief accountant function

The chief accountant plays a key role in the financial activities of an organization, ensuring accurate record-keeping and reporting in compliance with legal requirements and accounting standards. Here are the main functions typically performed by the chief accountant:

  • Analyzes the accuracy of income and expense recording, as well as assets and liabilities, in accordance with accounting and tax legislation.
  • Prepares the company's financial statements, including the balance sheet, income statement, cash flow statement, statement of changes in equity, and the explanatory notes to the annual financial statements.
  • Ensures timely preparation of tax returns in compliance with tax legislation requirements.
  • Controls the company's financial transactions, analyzes and corrects accounting errors, and prevents and detects instances of financial fraud.
  • Develops and ensures compliance with the company's accounting and tax policies and procedures, and monitors their alignment with legislative changes.
  • Collaborates with external auditors during the company's external financial audit, providing the necessary financial information and documentation.
  • Oversees the work of the accounting department staff, sets goals, and monitors task completion.

These functions can vary depending on the size and specifics of the company, but overall, the chief accountant plays a crucial role in ensuring the financial transparency and efficiency of the organization. Outsourcing the chief accountant function may be driven by several reasons:

Economic Benefit: For small and medium-sized enterprises, hiring a full-time chief accountant can be financially impractical due to high costs for salary, taxes, training, etc. In such cases, outsourcing the chief accountant function can be a more cost-effective solution.

Reducing Administrative Burden: Outsourcing the chief accountant function allows the company's management to free up time and resources from accounting duties and focus on strategic business development.

Access to Professional Services: An outsourcing company specializing in accounting services often has extensive experience and expertise in accounting. This allows the company to access highly qualified professionals without the need to hire a full-time employee. The client can be assured of receiving the best possible competencies.

Compliance with Legal Requirements: Accounting is subject to constant changes in tax legislation and accounting standards. An outsourcing company specializing in accounting keeps track of legislative changes and ensures compliance with all requirements and regulations.

Flexibility and Scalability: Outsourcing services allow companies to easily scale their accounting operations in line with changing business needs. When there is an increase in workload, business expansion, or the introduction of additional processes, the company can easily adjust the outsourcer's services to meet its needs.

As part of the "Chief Accountant Function and Reporting" project, specialists from Emerging Markets Group will provide the following services:

  • Comprehensive analysis of internal processes within the company and assistance in their optimization;
  • Support for the director in conducting activities from the perspective of understanding tax risks of various actions and timely notification of potential risks;
  • Monitoring the accuracy of income and expense entries in accounting records throughout the period (month or quarter);
  • Ensuring the company's compliance with tax legislation and accounting standards;
  • Consulting within the framework of current accounting for the company's accounting department employees within the allocated project time;
  • Analysis of the organization's expenses and income before the period's closure;
  • Preparation of the corporate income tax return;
  • Calculation of transportation and land taxes;
  • Calculation of quarterly VAT and preparation of the VAT return;
  • Preparation of the property tax return;
  • Preparation of statistical reports.

Thus, outsourcing the chief accountant function can be a sensible strategy for companies aiming to reduce costs, improve service quality, and focus on strategic business development.