How can an accounting office help us in times of crisis?

The article by a PKF expert (Ewa Sąsiadek - Associate Partner for Outsourcing in PKF BPO), was published on August 10, 2022 on the website wnp.pl.

Dynamic changes in the economy, the difficult lockdown period, the war in Ukraine, are only part of the turbulence that Polish entrepreneurs have been experiencing recently. High inflation, repeatedly bringing investments to a standstill, together with a high risk of loss of liquidity and a collapse in supplies, presents an extremely difficult situation for many entrepreneurs in Poland. Reality shows us that we have to get used to the word "economic crisis", rather for longer. In such a situation, it is important to react quickly to changes in the economic situation and the speed of the reaction can determine the existence of companies. Is a good accounting office in Poland really able to help us in difficult times?

The forecasts are unlikely to be optimistic and there is likely to be much more turbulence in tax legislation. More and more entrepreneurs are aware that they are not able to cope with their staff resources alone and meet the challenges of both the legislator and the turbulent market environment. Undoubtedly, in such times every business needs financial, operational or advisory support. Therefore, in times of crisis, it is worth looking for secure business partners with the right know-how in order to pass this difficult period calmly and lead the business in the intended direction.

Nowadays, when fast access to information and proper analysis of the legal situation matter, the support of strictly professional experts becomes necessary. Specialised knowledge is required for the handling of almost every transaction. All of this makes the outsourcing of accounting or tax processes often the best solution. Tax and operational security becomes extremely important and a lack of awareness can in turn bring serious fiscal and penal consequences. Staff fluctuations do not help either, leading to a lack of operational permeability.

In this time of ongoing economic crisis and constant modification of legislation, entrepreneurs are looking for solutions to secure their existence in the future. It is therefore worth identifying market opportunities. What can we gain, what can we secure, what can we give up? Does business development really have to be postponed? It is worth reviewing the current costs and setting up new areas of cooperation, dividing up business processes, responsibilities and financial commitment.

Business challenges are increasing every day and the risk of making mistakes is high. The need for constant upskilling, staff shortages, rising training costs and employee dissatisfaction lead to entrepreneur overload.

When choosing the right accounting outsourcing provider, it is important to carry out an extensive analysis of own needs so that the chosen partner is the one searched for.

Individual approach

Undoubtedly, understanding the specifics of the client's activity and an individual approach to his or her business are the hallmarks of a professional outsourcing provider. When carrying out a needs analysis, identifying the tools the client wants, both parties get to know each other. Good cooperation starts with the correct identification of the client's current problems and expectations.

In many cases, a pain point for entrepreneurs is the lack of key financial data on time. Therefore, an important aspect of cooperation is access to financial or HR data 24 hours a day, from anywhere, at any time.

The right solution may be the implementation of management reporting, which allows ongoing indicator analyses of the company's financial situation, along with analyses of the profitability of ongoing or planned projects. Adequate presentation of financial data, allowing identification of the source of an entrepreneur's financial problems, is one of the conditions necessary for making the right business decisions. Therefore, it is worth allowing specialists to help make the right decisions. Support is required nowadays as not everyone can afford to take risks.

The tools used to exchange information are already the first differentiator, confirming the openness and innovation of the financial and accounting outsourcing provider.

The possibilities in this regard are many, including:

• data exchange between the client's ERP programmes and the accounting office's programmes,
• the use of customer databases,
• models of cooperation based on mechanisms for processing current information for each party at the various stages of the operation about documents sent, received, pending, etc.

The benefit for each party is the implementation of appropriate processes, which thereby streamlines the work of the teams, facilitating and standardising external and internal communication. The understanding of the client's issues by the accounting office, supporting them in solving their key problems, brings not only a financial result. It is also an operational benefit in form of business partnership.

Financial safety

A serious provider of financial outsourcing services, who is aware of the business risks that can be faced on a daily basis, protects himself or herself by taking out an appropriate insurance policy that guarantees a peaceful tomorrow for both the client and the service provider.

Beyond any discussion is the awareness of the possibility of data loss, server crashes, cyber attacks, data confidentiality breaches. When working with an accounting office, this responsibility lies with them.

It is the accountancy office's responsibility to guarantee data security and ensure the provision of services in emergency situations. The use of diversified security measures, the know-how of the IT team, the speed of data recovery, the frequency of backups, the location of servers, are just some of the areas of cyber security policy that will make the accounting office a reliable partner.

Access to technology at the outsourcing provider

Investing in the team and tools is a prerequisite for the development of any business. In the case of a provider of financial and accounting outsourcing services, the measure of his advancement is, among others, the choice of an appropriate ERP system, which is tailored to the customers’ needs. The automation and standardisation of document workflow processes, guarantees the solution of many problems occurring with traditional document circulation. A definite advantage here is the minimisation of the risk of losing confidential information, a high level of security, control of time delays, proper coordination and easier management of document distribution.

Without having to implement an ERP system, thanks to the outsourcer, the entrepreneur gains quick and easy access to documents from anywhere and at any time, which is an absolute must have nowadays. The access to new technologies that the accountancy office offers to the client is a whole range of tools in which the client does not need to invest additionally. The variety of technologies used and the individual adaptation to the client's needs are benefits from which every entrepreneur benefits.

A team of experts in the branch

An entrepreneur who relies on boundless trust in his team without adequately verifying the experience and knowledge of his staff often exposes himself to serious financial risks. The enormity of the changes introduced in legal regulations, requires extreme vigilance and the need to constantly update expertise. Often, entrepreneurs and teams of accountants are overloaded with work and are unable to cope with the challenges posed to them, both substantive and technological.

Entrusting bookkeeping, tax and HR processes to an accounting office guarantees the client access to a team of certified accountants, HR and payroll specialists or tax advisors. Verification and updating of the knowledge of the team of accountants and HR specialists, control of tasks performed, supervision of the progress of work are a whole series of processes that the accounting office takes over. The possibility to use experts with extensive experience, a multi-project and professional approach allows business owners to benefit from the knowledge of people whose employment would be too expensive.

Benefits of working with an accounting office

It is generally known that the number of challenges facing entrepreneurs is constantly increasing and that it is necessary to diversify the processes of the business if the entrepreneur wishes to grow. The risk of making mistakes and liability for tax offences, is too high, therefore it is advisable to use the support of experienced advisors.

Outsourcing some of the processes to an accounting office is an excellent option for entrepreneurs who do not want to manage all areas and rather than taking financial risks, preferring to concentrate on their competences. If something is not the entrepreneur's strong point, it is worth considering working with an accountancy office.

What other benefits are there in outsourcing some of the processes to an accountancy firm?

• above all, comprehensiveness of services,
• guaranteed continuity of project implementation,
• legal and tax security,
• digital security,
• flexibility in choice of cooperation model,
• access to a staff of experienced industry experts,
• experience in conducting various projects: competent project teams,
• efficient and understandable communication,
• access to up-to-date financial information,
• access to modern technologies without the need for investment expenses,
• guarantee of secure cooperation - third-party liability policies, additional insurance,
• reduction of costs such as personnel, training, maintenance of systems, administration,
• savings on office materials, office space rental costs.

The volatility of the economic environment and the instability of the law, cause constant anxiety, lack of guarantees for business security and instability of assumptions. The changing environment forces fast and effective decision-making to build and maintain a competitive advantage.

Not all business areas need to be the domain of every entrepreneur. It is worth taking advantage of the knowledge of experienced experts, looking for possible cooperation solutions, applying new tools in business so as to increase profitability and efficiency in the company. And the right decisions will certainly bring benefits and accelerate development.