When outsourcing accounting services, you can be sure that the work won't be left undone in case the accountant falls ill or goes on vacation.
"By outsourcing the service, the company's own accountant and the service provider first map out all processes, which may lead to improvements and increased efficiency," said Grant Thornton Baltic's Partner and Head of Business Process Solutions, Gaily Kuusik. Although this is a time-consuming process, it mitigates risks in case the company's accountant needs to be replaced or requires assistance.
The service provider must always have multiple employees familiar with the specific client's accounting. "When I purchase the service, I don't care if the employee has left, is on vacation, sick leave, training, or just having a bad day. The service provider guarantees that if one person drops the ball, someone else will pick it up," said Starship Technologies' Chief Accountant Iriina Kangur, who outsources the service. She added that the quality and duration of work should not suffer due to personnel changes.
Grant Thornton Baltic's Partner and Head of Assurance Services Mart Nõmper emphasized that the service provider must have liability insurance. "If the response is that we don't need insurance because we never make mistakes, that's a red flag. Humans are undoubtedly fallible," added Nõmper.
Client must not withhold information
Quality information and original documents are the foundation of outsourcing services. If these are lacking, the service provider may refuse to offer the service. "Every service provider operates in a situation where both parties have an interest. If the client is not genuinely interested in receiving the service, why should we push for it? We can't do accounting if we don't get the information," explained Gaily Kuusik.
In addition to complicating service provision, such behaviour by the client jeopardizes the reputation of the service-providing company. "Terminating the contract halfway is not uncommon, if necessary," added Kuusik.
"Working with a suitable service provider is like a relationship," explained Iriina Kangur. Since services are often outsourced due to a lack of competence in the specific field, the service provider must not only answer questions but also proactively offer advice if the client doesn't know the right questions to ask. Kangur expects the service provider to remind them of additional obligations, required documents, and deadlines.
Choose carefully before deciding
Mart Nõmper recommended requesting quotes from several companies and doing homework before signing a contract. "For example, you can give the service provider an accounting task and ask how they would handle it and assist the entrepreneur. This homework can be given to several firms to see how quickly, qualitatively, and in what manner they respond, as this will be repeated in future client relationships," said Nõmper.
It is also advisable to check if the service provider has been audited. "If the company has an auditor, you can ask the auditor if they have had previous contact with this accounting firm and how the audits have gone," added Nõmper.
If the accounting service provider has not submitted tax declarations on time or has tax debts, it is best to avoid them. "If the shoemaker's shoe is broken, we don't want to go to that shoemaker or wear the shoes that come from that house," Mart Nõmper drew an analogy.
"The number of users of accounting services is increasing. One reason is the more efficient and convenient service compared to before," said Nõmper. This also means that information flows continuously between the service provider and the entrepreneur, preventing information gaps. "Today's service providers are of high quality – as an entrepreneur, you have 24-hour access to your data. If you don't, you have the wrong service provider because access to your data is essential," added Nõmper.
This article is inspired by the insights shared in Grant Thornton Baltic's podcast "Kasvukursil" on Äripäev Radio.
